1099K?

[brden-5244]

Just was wondering if anyone could help me out. I sold an item on eBay for $795 with $50 of it being shipping and the other $45 the buyer paid in taxes. The item actually sold for $700. I got back $644 after all the fees and such. Which is 44$ above the $600 new 1099K law. I don’t sell a lot of stuff and this is the only thing I’m going to sell online this year. Will I actually receive a 1099k form for being $44 over with 1 transaction? I live in oregon where I don’t pay any sales tax. Thank you!

[mam98031]

@michigancolor 

"This needs to be reported on your 2022 taxes that you will file in a bit over a year."  2022 taxes are due in April unless you file for an extension.

1099Ks do NOT report income, they report Gross Receipts for the total amount of money that came into your payment account BEFORE any deductions are taken for refunds, shipping charges and fees.

[michigancolor]

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@mam98031 wrote:

1099Ks do NOT report income, they report Gross Receipts for the total amount of money that came into your payment account BEFORE any deductions are taken for refunds, shipping charges and fees.

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Correct, and I don't think I said anything inconsistent with that.  My point is that I've seen some people other places give bad advice that if you sell personal items and get a 1099-K, just ignore it and don't put anything on your tax return about it.  If you receive a 1099-K, you need to properly handle it on a tax return.  If someone just ignores it, it's quite possible that the IRS matching system will see the taxpayer didn't address it, and they may send out a notice inquiring about it, or that they added it to someone's filed tax return and have changed the balance due or to be refunded.  Yes, it's fixable even if that happens, but it's much better to file it right the first time.  There are hundreds or thousands of reputable taxation sources backing this up, and AFAIK no reputable taxation sources saying to just ignore it.

[714ricki]

Yes, you will receive a 1099K in 2024 for your 2023 aggregrate sales.  The taxes will be depending on how much profit you made over the year while selling items online on platforms such as ebay. There are some business deductions that you can use to lessen any tax obligation. Consult a tax professional. 

It will be painless!!

Good luck!!

[yoonix1]

https://community.ebay.com/t5/Announcements/IRS-announces-delay-in-new-600-1099-K-tax-reporting-thre...

You can check out the link above. The EBay explains what's going on.

[stephenmorgan]

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@brden-5244 wrote:

Yes I paid $1100 for it!

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You will not owe any taxes but you will need to account for the money on your tax documents.

[mam98031]

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@brden-5244 wrote:

Yes I did pay more for it than what I sold it for. I paid $1100 for it!

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Hopefully for the difference between what you paid for it and what you sold it for, you enjoyed being able to use the item.

[mam98031]

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@michigancolor wrote:

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@mam98031 wrote:

1099Ks do NOT report income, they report Gross Receipts for the total amount of money that came into your payment account BEFORE any deductions are taken for refunds, shipping charges and fees.

---

Correct, and I don't think I said anything inconsistent with that.  My point is that I've seen some people other places give bad advice that if you sell personal items and get a 1099-K, just ignore it and don't put anything on your tax return about it.  If you receive a 1099-K, you need to properly handle it on a tax return.  If someone just ignores it, it's quite possible that the IRS matching system will see the taxpayer didn't address it, and they may send out a notice inquiring about it, or that they added it to someone's filed tax return and have changed the balance due or to be refunded.  Yes, it's fixable even if that happens, but it's much better to file it right the first time.  There are hundreds or thousands of reputable taxation sources backing this up, and AFAIK no reputable taxation sources saying to just ignore it.

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Well you only posted half my posting.  On the first half what you posted was clearly a typo, but it needed clarification so that those that didn't realize that would know

As to the second half you posted above.  What you posted wasn't that clear one way on the other, so I just wanted to make it clear.  Whenever what was posted is unclear or leaves some details out it can be misunderstood.

Some helpful sources.

https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

https://www.irs.gov/businesses/gig-economy-tax-center

https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html