1099K Issued in Error

[webonc]

Did anyone else receive a 1099k even though you had less than $20,000 gross sales and 200 transactions? In light of the IRS delaying the $600 threshold, I chatted with an associate, who determined I'm NOT in a state which requires reporting (several did stay with the $600). He submitted a request for a correction and said to allow 5 business days. So if this was reported to the IRS already, how do I deal with it on my taxes? He told me to consult a tax professional, which adds to my fee. 

PS - I do not have a business. I'm a casual seller and recently retired from working fulltime. Having retired, I had time to clean out used items collected over many years. No idea what I paid for the items.

[wastingtime101]

eBay issues 1099-K forms based on whichever is lower between state and federal threshold.

Montana has a $600 threshold so that trumps the federal threshold.

[monica-sells]

Better advise your associate....

https://blog.boomtax.com/montana-state-1099-tax-filing/

Montana:

1099-K

Merchant Card and Third Party Network Payments

$600

[kensgiftshop]

Montana is $600 for a 1099K.

[sapphire_studio]

You do the same thing you would do even if you didn't get the form if you are an ebay seller. You create a Schedule C and Report the income and take off all the expenses that your business incurred like shipping, fees, cost of inventory, mileage etc. 

The fact that you got the 1099k just helps the tax filing process go easier in my opinion.

[caldreamer]

Don't believe anything EBAY associate tells you....they are located in the Philippines and have no idea what IRS laws here in USA.   Every state has different reporting threshold.

Yes, 1099 is sent to you and the IRS.   Even if you don't receive 1099 you still have to report every dollar earned to IRS.  

[mam98031]

@webonc 

Just report your income the way IRS requires it.  With or without a 1099K, we are suppose to report all our income.  On Self Employment rules, if less than $400 you don't have to report it.

So if you got the 1099K, it should change how you do your taxes other than you now have this form.  You should have been accounting for the income with or without the form.

I don't think anyone believes anymore [but some use to] if you made something like $19,999 and you didn't get the 1099K, they didn't have to report their income.  We all now know that is not true.  The threshold on a 1099K is ONLY for the FORM.  The 1099K is nothing more than a FORM.  It does not now nor has it ever set the threshold for reporting income.

[dnasilver]

The IRS sets minimum thresholds on all forms. We issue 1099's to anyone that falls into the category to receive one. The dollar amount does not matter to us. It is up to how a company wants to handle the forms. They can decide to issue or not based on IRS minimums. 

[mam98031 · Accepted solution]

It should also be noted there are a dozen or more different types of 1099's, each for a different purpose.

[webonc]

The link monica-sells posted indicating Montana has a $600 threshhold is dated October 2022. The 2021 reporting threshhold was delayed in December 2022, so this chart reflects what it would have been without the delay. This time that announcement was made in November 2023. From what I can see, the attached 2023 chart shows states not following federal guidelines.

[mam98031]

It is an error on Ebay's part.  They are not re-releasing previous years 1099K, that is history.  It was simply a mistake.  The only 1099K they owe to sellers right now is 2023.