1099k

[helbear143]

I have a question I chatted with an agent form eBay who advised I wouldn’t receive a tax form since the transaction was cancelled? He advised me to just visit my sold page items and delete the transaction? My sold items said $600 and since I removed that transaction is says $500. Please let know if this would help avoid getting the tax form

[nobody*s_perfect]

It depends on whether it was canceled before or after it was paid for.    The amount on your 1099-K includes all of the funds that eBay processed for you, including both the item price and the shipping if any.  If the buyer never paid, then no funds were processed and that won't be included on your 1099-K.

Also, the threshold for 2023 is still $20,000. Here's the announcement from the IRS.

https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-...

Please do not reply on eBay customer support staff for tax advice.

[luckythewinner]

The law passed by Congress is about payment processing, not eBay sales.

It says that any payment processed on your behalf counts toward the threshold for a 1099-K even if that payment is later refunded.

Please note that the IRS recently announced a delay in enforcing the $600 threshold:

"This means that for 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements."

https://www.irs.gov/newsroom/irs-announces-2023-form-1099-k-reporting-threshold-delay-for-third-part...

[fern*wood · Accepted solution]

If the 1099k threshold is $600. in your state and you received payments to meet this amount, you will still receive the form.  Deleting paid items off your sold listings, even if refunded and cancelled, do not matter.  You account for this when you report your sales on your tax forms.

[ckimodog]

@helbear143 

You should really consult a professional who deals in taxes etc.  They can give you a more clear,  concise answer more than the people here on this forum who are (most) not tax professionals, but do their best to advise.  Just my opinion. 

Happy Holidays

[helbear143]

Thank you!!

[helbear143]

Thank you!