California 1099-K for 2021 : to be fixed

[shipscript]

California sellers were surprised to receive a 1099-K this year for sales over $600, when the state's requirement for 2021 affects only gig workers (like Uber drivers) who are paid over $600.

eBay reports that the 1099s have not yet been sent to the state or IRS and eBay is working on correcting that error. eBay will notify the affected sellers.

The old rules for 2021 reporting ($20,000 AND 200 transactions) are still in place for California sellers who received a 1099-K this month for those larger thresholds.

[heckofagame]

Good to know. There have been a lot of posts about this.

[jda08121]

I still don't get why this is so big an issue. You do know you are still required to file taxes regardless of the limit.

[wrong66]

Who's not surprised that eBay has apparently mucked up the whole 1099-K thing for 2021. Incredible!

[jda08121]

Again, what difference does it make?

[heckofagame]

It's harder to dodge taxes if you get a 1099k.

[nobody*s_perfect]

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@jda08121 wrote:

I still don't get why this is so big an issue. You do know you are still required to file taxes regardless of the limit.

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Many of the smaller sellers are hobby sellers who are re-selling household items for less than they paid, so technically wouldn't have any net profit on which to pay income tax, but will have to deal with a lot of extra paperwork at tax time.

[wrong66]

What difference does it make? Several posts about 1099-K's showing twice what the seller actually sold. Who knows what amount eBay is actually sending to the government. If they screw up by sending a 1099-K to someone who was well under the 2021 threshold, what else have they screwed up? The difference is how they seem to be mishandling the whole thing.

[stainlessenginecovers]

Sorry, I don't believe for an instant that they were NOT mailed out to the State and/or IRS the day they were available for 'download'. 

Do you?

[tealt]

@shipscript 

Thank you, thank you, thank you!

this thread needs to be tacked to the top of this board to answer questions that have been asked all week and to put a lid on all the  misinformation that has been posted.

[tealt]

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@jda08121 wrote:

I still don't get why this is so big an issue. You do know you are still required to file taxes regardless of the limit.

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@heckofagame 

This a big deal/issue to many CA eBay sellers because:

1)  There probably are tens of thousands of CA sellers who run their eBay sales as a business and pay taxes (me, for instance).

2)  When a law-abiding CA sellers files their return they are required to provide a list of the 1099's they have received.

3)  Many  law-abiding CA sellers, having read eBay's guidance on 1099K's, would not expect to receive a 1099k this year and, trusting eBay, wouldn't look for one.  I wouldn't know mine existed if I didn't read these boards every day.

4)  The IRS has a list of all 1099's sent to a taxpayer ID.  The IRS has bots which compare that list to the list a  CA eBay seller provides.

5) If the lists don't match (because a CA seller doesn't know that eBay issued them a 1099K), the CA eBay seller will be hearing back from the IRS.

6) To hear back from the IRS about the validity of your return is a big deal to most taxpayers.

[tealt]

tyler@ebay 

jasmen@ebay 

velvet@ebay 

Would it be possible to tack this tread to the top of this board with some sort of eBay seal of approval? 

 During the last week there has been a good deal of discussion and speculation on this topic and plenty of misinformation handed out.  If this thread isn't tacked, all that discussion, speculation, and misinformation may continue.

Or, is an official eBay Community thread in the offing?

[dwaopd_0]

I bet you’re fun at parties

[danslai]

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@shipscript wrote:

eBay reports that the 1099s have not yet been sent to the state or IRS and eBay is working on correcting that error. eBay will notify the affected sellers.

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I'm wondering what it means for eBay to correct the error. I'm well under the $20k/200 transaction thresholds and have already received the 1099-K in the mail so they cannot unsend it to me. On the 1099-K, it states "This is important tax information and is being furnished to the IRS." It is hard to believe that the 1099-K hasn't been sent to the IRS yet if I've already received it in the mail.

[lloydsteventaylor]

@shipscript 

hi thanks for post.

would you be able to ask your "Ebay reports" what the status of my 1099 is?

i still dont have mine either 

i checked seller hub payments taxes nothing

i  am in NJ so threshold is $1000 

i  choose online and mail

i have called cs payments section 3 times and chatted cs 5 times and i still dont have it even though 

they apoligized and promised it

yet nothing

i computed the amount myself. i just want to make sure what ebay will transmit to the irs

and with all the posts here i am nervous that ebay will transmit the wrong number to the irs. 

thanks