1099K

[huntingforit04]

STARTING JANUARY 1, 2022 EBAY WILL SEND A 1099K TO ALL SELLERS THAT MAKE OVER $600 IN THAT YEAR.  I, FOR ONE, WILL NOT BE SELLING ON EBAY AFTER THAT TIME.  I AM A DISABLED SENIOR WHO CANNOT DO MUCH BUT SIT IN FRONT OF A COMPUTER.  EBAY SELLING HAS HELPED ADD A LITTLE EXTRA MONEY TO PAY FOR MEDICATIONS, BUT IF I HAVE TO REPORT IT AS INCOME, THEN I CAN NO LONGER SELL ON EBAY.  I ENJOY THE INTERACTIONS OF THIS HOBBY, BUT WILL NOT CONTINUE TO SELL BECAUSE OF THIS NEW POLICY.  EBAY IS GOING TO LOSE A LOT OF "FEES" WHEN SELLERS DECIDE THAT BETWEEN FEES AND 1099K, IT IS NO LONGER SOMETHING THEY WILL DO.

[dhbookds]

Note that Ebay is merely following the laws on the 1099........and have to say........even without a 1099 you are responsible for reporting your income.....

[dnasilver]

It is not just eBay, .........even the neighborhood kid should get one for shoveling snow and cutting the lawn.  But, all income is to be claimed according to the IRS. The determination is if it really is income. Just because you get a 1099 does not mean income. You could of sold inherited items, items you don't want anymore for which you paid more than sales. This move will be a disaster for all the market places to handle, the errors alone will cost a fortunate. The IRS will not be happy either trying to figure out which 1099 is truly real income. One big mess is coming down the pipeline. 

[southern*sweet*tea]

I'm not disabled, but I am I suppose considered a senior (60 is closer than I want to admit), and I do this for extra money. It's fun and enjoyable for me.  1099s are of no concern to me, because I report all my income anyway, be it $1 or $10000.

Please don't play the "senior citizen" card. Being older doesn't give you an excuse to be a tax dodger.  I get so tired of that being used as an excuse. It's no wonder struggling young people can't stand us.

[inhawaii]

You mean you haven't been paying taxes on your ebay income?  Shame on you!

[shadel8640]

@huntingforit04
you realize you just admitted to tax evasion on a public forum, right?

[huntingforit04]

NEVER EVADED TAXES.  THIS IS A HOBBY, LIKE HAVING A GARAGE SALE.  NO TAXES ARE PAID ON GARAGE SALES.  IF, IN 365 DAYS, YOU CAN'T MAKE MORE THAN $600 ON A GARAGE SALE OR TWO WITHOUT BEING TAXED....THEN I THINK LAND FILLS ARE GOING TO START BEING OVERWHELMED.  I AM RECYCLING AND THEN PUTTING BACK INTO THE ECONOMY WHAT I MAKE WHETHER FOR FOOD OR MEDICATIONS.

[shadel8640]

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@huntingforit04 wrote:

NEVER EVADED TAXES.  THIS IS A HOBBY, LIKE HAVING A GARAGE SALE.  NO TAXES ARE PAID ON GARAGE SALES.  IF, IN 365 DAYS, YOU CAN'T MAKE MORE THAN $600 ON A GARAGE SALE OR TWO WITHOUT BEING TAXED....THEN I THINK LAND FILLS ARE GOING TO START BEING OVERWHELMED.  I AM RECYCLING AND THEN PUTTING BACK INTO THE ECONOMY WHAT I MAKE WHETHER FOR FOOD OR MEDICATIONS.

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Yeah...you're supposed to file on garage sales too, Mr. Tax Evader.

[maxine*j]

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@southern*sweet*tea wrote:

... Please don't play the "senior citizen" card. Being older doesn't give you an excuse to be a tax dodger.  I get so tired of that being used as an excuse. It's no wonder struggling young people can't stand us.

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Amen!  I'm closer to 80 than 70, and I get tired of the senior whine, too.   And not just about taxes. 

Anyhow, insofar as taxes go, there are mulitudes of people out there who do income tax preparation for seniors at no charge, assuming OP has enough income to have to file a return and that is something  OP can determine in about 90 seconds at the IRS website.

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[tryno2]

They are all correct, you are supposed to claim money from garage sales, sales to individuals, EBay sales, etc etc.  Now what has NOT been mentioned is what EBay will be reporting is your SALES, not your Profit.  From your SALES figure you then deduct your costs.  EBay fees, Paypal fees, cost of buying whatever you are selling.  If you have to drive to buy the items to sell you mileage is deductible.   Then you pay taxes on the profit.  

[luckythewinner]

 IF I HAVE TO REPORT IT AS INCOME, THEN I CAN NO LONGER SELL ON EBAY

If income is reportable, you have to report it - whether you get a 1099 or not. That is the law. 

BUT WILL NOT CONTINUE TO SELL BECAUSE OF THIS NEW POLICY

This is not an eBay policy. It is the law. 

WHEN SELLERS DECIDE THAT BETWEEN FEES AND 1099K

Sellers who understand what 1099K is will not be afraid. They know that just because money is reported on a 1099K, that does not magically re-classify it as taxable income. 

I think you are over-estimating the number of misinformed eBay sellers. I suspect most of them understand that a 1099K is nothing to be scared of.  

[fern*wood]

Something for everyone upset about getting a 1099k to consider, the IRS can audit and fine people for ebay sales whether they get notified of a 1099k or not.  Over 10 years ago the friend that got me started selling, got audited and had to pay quite a pretty penny for several years she wasn't reporting her ebay sales.  All she sold was sewing patterns and wasn't really a big seller, but that didn't matter.  Oh, and this was way before anyone was sent a 1099k. 

[submelar-super]

thank you

[submelar-super]

thank you for grate explanation 

[richard1rst]

One more thought. Depending on your specific circumstances, (extra deductions for old, disabled, etc) you can have what would be considered taxable income of in and around $30,000 and, because of standard deductions, not owe any taxes. So what's the big deal with the 1099?