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.

[pieper9825]

So what are the sellers in California supposed to do?  eBay has still not addressed this issue. . .

[nobody*s_perfect]

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@pieper9825 wrote:

So what are the sellers in California supposed to do?  eBay has still not addressed this issue. . .

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Posts in this thread indicate that eBay HAS addressed it: Removed the 1099-K's for the sellers who were below the federal thresholds, and reassured them that the form was not sent to the IRS.  Starting around post  #35.

[cordell1]

You can tell the people who don't do their paperwork!  Getting a 1099....you better do your paperwork and then you have no problem.  So simply but I guess not for everyone.  Money comes in as income, it's sellers job to show the expenses to offset that income.  Have being doing this since day one!  No worries for me.

[powell-memorabilia]

Maybe just pay your fair share?

[perfumenmore]

Doesn't the law go into effect in 2022 to be included in your taxes in 2023?

[perfumenmore]

It's not just paying the taxes on products you already bought and paid taxes on already. It's being considered an independent contractor and have to pay all the additional taxes on that. Not to mention, it will affect a lot of retirees on fixed incomes.  

[itsjustasprain]

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@perfumenmore wrote:

It's not just paying the taxes on products you already bought and paid taxes on already. It's being considered an independent contractor and have to pay all the additional taxes on that. Not to mention, it will affect a lot of retirees on fixed incomes.  

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You seem to be confusing sales tax on products you bought with income tax on products you sold.

[iamonourside]

@shipscript 

Hi. What is the latest on this issue? I am an affected seller having received 1099 despite being under the limit but have not received notice of retraction.  Are retractions only going out for those sellers who contact eBay

Thank you.

[bbravo65]

@perfumenmore 

...it effects this year 2022 for filing income tax at the beginning 2023 for 2022...

[bbravo65]

@iamonourside 

....I, personally, could not trust eBay retraction of form 1099-K...

...report it, writing off as much as you could so you can get some credits in tax refund...

...I don't think the tiny sellers could owe too much tax on that teeny gross income compares to million of dollars from those corruption politicians in Congress...

[shipscript]

@iamonourside 

Is there a 1099 report in the Payments tab in your Seller Hub?

If not, consider it retracted, since others have noticed their reports disappeared when retracted.

If there is one there, and you are nowhere near the 20K threshold, then you may want to contact Managed Payments.

[perfumenmore]

See, that's the thing. For a lot of people, this is not income. This is selling stuff you have or bought and don't want. They call it income tax so that you are then subject to other taxes. 

[a_c_green]

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@perfumenmore wrote:

See, that's the thing. For a lot of people, this is not income. This is selling stuff you have or bought and don't want.

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It's "income" regardless of the reason for selling. Once you have deducted your expenses, you pay tax on whatever amount is left as your net income.

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@perfumenmore wrote:

They call it income tax so that you are then subject to other taxes. 

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I'm sorry, but I cannot fathom what that is supposed to mean.

[lovett-1000]

They told me this your speaking of.  That went in affect 1 Jan. 2022. I got to keep a close eye on my sales for then.  It will be under the measly 600 Dollars. I am not going to have e bay start sending me a 1099 junk. This is ridiculous. Not many people going to get my good pecans this year.  E bay is really going to loose out the I.R.S. needs to be ashamed of them self's.  They went from 200 sales or over $ 12,000 for them to report to $ 600. What a joke.  I am a skilled man I will be soon out of here.  I hope all the rest of yawl have a good trip on here.  Thank you so truly for you post. Best Wishes I make a lot of sales to Calf.      

[dhbookds]

@anamandy wrote:

They call it income tax so that you are then subject to other taxes. 

I'm sorry, but I cannot fathom what that is supposed to mean.

probably means soc sec....FICA/Medicare............