1099K

[chevyapril64]

I know the 1099k  shows my yearly total, my question was the 90 day activity total, is that the same dollar amount reflecting the 1099k  ?  So if I want to stay under the 2500.00  selling threshold is that the dollar amount to watch?

[ebooksdiva]

@chevyapril64 

Don't waste your time trying to stay under $2500. You are required by law to declare any income earned from selling on eBay, even if it's only $1.00. Whether or not you have to pay taxes on those earnings depends on any losses and business expenses you deduct. 

[luckythewinner]

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@chevyapril64 wrote:

I know the 1099k  shows my yearly total, my question was the 90 day activity total, is that the same dollar amount reflecting the 1099k  ?  So if I want to stay under the 2500.00  selling threshold is that the dollar amount to watch?

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The 1099-K reports gross incoming payments processed (excluding sales tax) without deducting any refunds for the entire calendar year. 

I don't know what the "90 day activity total" is, but it sure sounds like it covers 90 days and not the entire year.

[kensgiftshop]

@chevyapril64 

Doesn't matter if you stay under, you're still required to report your income.

[12345jamesstamps]

Of my deductions against the 1099k...I deduct 12 months of wifi + equipment and 50 % of 12 months of my iPhone AT &T bill....that really helps in some deductions per my H & R Block accountant.

I wouldn't worry about how much I make. Deductions really help in the long run.

The total of the 1099k this year is suppose to be quite low...however...with a different administration who's to say it won't return to $20,000.00? Just a thought here.

[dryophelia]

@chevyapril64 

Since all income is to be reported, I would aim for sales above the threshold. 
That way, I get the form that tells me what was reported. When I know what was reported, I can compare it against my own figures. 
The 1099 form used to be a perk that only high volume sellers got. Those under the threshold had to do all that calculating by themselves. 

Only your profits are taxed. Keep good records and you may not owe any taxes on your eBay’s income. 

[stephenmorgan]

The entire year of income processed on your behalf is attributed towards the 1099K.   It does not matter if you spend money with eBay to purchase shipping of if you give a refund after the money has been processed on your behalf that amount will be included in the total.  

[luckythewinner]

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@dryophelia wrote:

The 1099 form used to be a perk that only high volume sellers got. Those under the threshold had to do all that calculating by themselves. 

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ROTFL. 

The 1099-K does not do any calculating for me. 

My calculations did not change one bit after I got 1099-K forms. 

The single report that gives me my returns, refunds, fees, and shipping costs also gives me my gross. 

I just need to check that my gross meets or exceeds the total of all my 1099-K forms. 

[monica-sells]

Why bother? The reasons previously stated are valid....but, who knows what thresholds they (your state or the feds) will come up with by Dec 31st?

Could be 600, or some other yet unknown number.

Just sell what you can and offset with your expenses. Chances are you will own 0.00 additional income tax once all is said and done.

[monroe67]

" . . . if I want to stay under the 2500.00  selling threshold . . . ."

Neither Form 1099-K nor eBay have a "[$]2500.00 selling  threshold."

As issuers of Form 1099-K, eBay is subject to the IRS's threshold for reporting  to the IRS. 
That threshold (minimum amount) for 2025 is currently $2,500.00.  

YOU, as (presumably) an American income tax payer, are expected to list all of your income on your Form 1040 (or appropriate version) tax return form.  Even if eBay does not have to send you a Form 1099-K.  

BTW, if your state has a lower threshold for 1099-K reporting, you will receive a 1099-K once you cross that lower threshold.  

[monroe67]

"The total of the 1099k this year is suppose to be quite low...however...with a different administration who's to say it won't return to $20,000.00?"

Late in November of 2024, the IRS published the 1099-K thresholds for 2024, 2025, and 2026.  Those are/were:
          2024:       $5,000

          2025:       $2,500

          2026:       $   600

That said, it would still be wise to keep your eyes and ears open in November/December of this year, to see if the IRS makes any revisions to those dollar amounts.  eBay will certainly issue an announcement if necessary.  

[mam98031]

@chevyapril64 

Myth: If taxpayers didn't receive a Form 1099-K, they don't have to report income.
Fact: According to federal law, all income is taxable unless it is specifically excluded by tax law. Taxpayers should report any profits from selling goods or services, regardless of if they receive a Form 1099-K.

https://www.irs.gov/newsroom/irs-never-mind-the-myths-know-the-facts-about-receiving-a-form-1099-k-i...