Do you still get a 1099 if...

[hachumi]

You spend all the money you make on Ebay, through spendable funds on Ebay?   Or if no money ever hits my bank account from here, am I making any income or just breaking even?

[fab_finds4u]

6es, if you reach the $600 limit it will generate a 1099-K.

[annadryl]

You're still making income. It's not about getting "credit" (for lack of a better word) and keeping it within ebay. It's about taxes. This applies to anywhere else you might sell.

[nobody*s_perfect]

Spending has no effect on the 1099-K total, which is based entirely on whatever eBay processes for you as incoming buyers' payments for the items and shipping.

[richard1rst]

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@hachumi wrote:

You spend all the money you make on Ebay, through spendable funds on Ebay?   Or if no money ever hits my bank account from here, am I making any income or just breaking even?

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RUN do not walk RUN to a tax accountant. You obviously have no grasp and you desperately need some professional financial advice.  (Yes, you will get a 1099 if the receipts are over $600.00 without regard to whether or not you spend any of it)

[hachumi]

I understand how it works,  just had to ask the question, cause it opens a big can of worms. 

[hachumi]

How come it doesn't apply to my 401k?  it's income I supposedly generate.  Just digits on the screen like Ebay.  Could change tomorrow if ebay starts charging a new fee on money in your account.  Aren't I just bartering, if I use the the things I already own to acquire more things from Ebay? 

[johnrj1226]

You will pay taxes on your 401K when you withdraw funds.   

[lacemaker3]

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@hachumi wrote:

How come it doesn't apply to my 401k?  it's income I supposedly generate.  Just digits on the screen like Ebay.  Could change tomorrow if ebay starts charging a new fee on money in your account.  Aren't I just bartering, if I use the the things I already own to acquire more things from Ebay? 

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You owe income tax on the money in your 401k when you take it out. The point of a 401k is to delay paying the income tax, and hopefully you will be in a lower tax bracket when you withdraw it. That has nothing to do with income from selling things.

Why wouldn't you owe income tax on barter income? You have to report all income:

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

You should read up on this, so you understand this correctly. You're spreading misinformation.

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

[hachumi]

How am I spreading misinformation by asking a question?,   
So what you're saying is the 401k is an exception and you only pay taxes if you take the money out of your account?  so what if you never take the Ebay money out of your account?
And Uber is a good example, are you actually sharing rides, or are you going places you've never went unless somebody paid you?

[kensgiftshop]

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@hachumi wrote:

How am I spreading misinformation by asking a question?,   
So what you're saying is the 401k is an exception and you only pay taxes if you take the money out of your account?  so what if you never take the Ebay money out of your account?
And Uber is a good example, are you actually sharing rides, or are you going places you've never went unless somebody paid you?

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Ebay isn't anything like a 401K.

It doesn't matter where your Ebay funds are, you earned them and they will be reported.

If you drive for Uber, they'll report it also.

[the_fancy_fox]

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@hachumi wrote:

How come it doesn't apply to my 401k?  it's income I supposedly generate.  Just digits on the screen like Ebay.  Could change tomorrow if ebay starts charging a new fee on money in your account.  Aren't I just bartering, if I use the the things I already own to acquire more things from Ebay? 

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A 401 is protected income until you take a disbursement. 

Even if you barter your supposed to claim it.  Most people do but you are supposed to. 

it’s federal law. Anything over $600 earned and you get a 1099. 

a tax preparer can help you figure out how to allot the income from the 1099 on your taxes. If you are selling for a profit and used some of that money to buy boxes and bubble wrap her on ebay (or anywhere) you can write that off that amount of the 1099 as expenses. 

[a_c_green]

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@hachumi wrote:

You spend all the money you make on Ebay, through spendable funds on Ebay?

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Yes. The 1099 simply reports your gross income from sales through the website (eBay, in this case). That's all it does.

It's up to you to file the various deductions, expenses, losses, etc. on your tax return, and then the net income (what remains of the amount on the 1099) is what you actually pay taxes on. Not difficult.

[nocoolnamejane]

The 1099K reports your income: all the money that COMES IN. It’s up to you to deduct what comes out (expenses) to determine your actual profit (which is what you are taxed on.

Doesn’t matter if it hits your bank account or not.

Uber is actually the same thing, it’s all part of the fig economy: income isn’t only a salary, it’s money you receive for performing a service or selling for profit. It’s up to you to deduct your related expenses from the income to determine profit.

[donsdetour]

Seems this topic has had a bit of clean up. Easy to get heated in such discussions.

The law is that marketplace facilitators must send out a 1099-k to its users that cross or at the $600 buck threshold.

eBay has nothing to do with this, but has to follow law. There are laws that state what must be reported on this form. It is what it is.

I do suspect laws after this years reporting and the mess folks and the IRS find them selves in may get worse.

It seems to be an addenda of course to fret out more money for the USA tax revenue.

Only thing you can do about such is to complain to your law makers... Not that that will do much good.

They need that money for all them things everyone expects from the government today...

As for reporting taxes well that is on you; If you do not know how, or the rules of such consult a tax adviser.

I suspect a lot of folks are going to need one.

Oh and them spendable funds: well its your to spend, so it is taxable income see.......

As for cost of stuff, as well as fees, and other expense. Again consult a tax adviser. You will need one from what I have seen on this topic.