Form 1099-K

[califdreamin2004]

What is happening with reporting sales amount to IRS on form 1099-k?  Will it be anything over $500 in sales has to be reported or will it still be $20,000?  Anybody know?

[buyselljack2016]

For the 4,982, 673rd time................... all sales need to be reported.

 The 1099-K is just a form

[ryry-jj]

You will be seeing a 1099 for the amount  of $600 and over.  Default is an electronic 1099, must request to receive a  paper/mailed 1099.  Can it still change...sure, but it hasn't as of yet

[reallynicestamps]

You'll get the form at whatever the IRS decides eBay has to provide you.

It will be useful in making all your tax deductions for your entire eBay income, which must be declared.

[monroe67]

"What is happening with reporting sales amount to IRS on form 1099-k?  Will it be anything over $500 in sales has to be reported or will it still be $20,000?  Anybody know?"

So, about 25 minutes ago, to try to find this answer, I googled "2024 1099-K".  
It occurred to me, though:  Does Google only work on my computer?  Does OP not know that "googling" can help him/her find his/her own answers?  But that's probably not important right now.  

                                                        The IRS has issued guidance for 2024.  

First -- note the date:  November 26, 2024.  That was just last Tuesday, five days ago.  
Not sure if eBay has tried to pass the info along to sellers.  

(START QUOTE)

IR-2024-299, Nov. 26, 2024

WASHINGTON — The Internal Revenue Service today issued Notice 2024-85 PDF providing transition relief for third-party settlement organizations (TPSOs), also known as payment apps and online marketplaces, regarding transactions during calendar years 2024 and 2025.

Under the guidance issued today, TPSOs will be required to report transactions when the amount of total payments for those transactions is more than $5,000 in 2024; more than $2,500 in 2025; and more than $600 in calendar year 2026 and after.

Notice 2024-85 also announces for calendar year 2024, that the IRS will not assert penalties under section 6651 or 6656 for a TPSO’s failure to withhold and pay backup withholding tax during the calendar year.

TPSOs that have performed backup withholding for a payee during calendar year 2024 must file a Form 945 and a Form 1099-K with the IRS and furnish a copy to the payee.

For calendar year 2025 and after, the IRS will assert penalties under section 6651 or 6656 for a TPSO’s failure to withhold and pay backup withholding tax.

(END QUOTE)

As an online marketplace, eBay is a Third Party Settlement Organization (TPSO) described in this statement.
eBay is required to create a 1099-K form for sellers who have sold more than $5,000 during 2024.  

All eBay sellers who are required to file their own Income Tax Returns are expected to list all -- ALL -- their income on IRS Form 1040 (or the appropriate version).  Whether eBay sends them a 1099-K form or not.  

Edited to add:  Upon reading the previous responses, I think maybe Google DOES only work on my computer.   Maybe I should charge.  

[stainlessenginecovers]

@monroe67  BUT..................

Also: Some States require a 1099 for something as low as $1000 regardless what the Fed requires

[12345jamesstamps]

We all know about the laws to report all income...people will do what they wish....whether putting hidden money on off-shore accounts on certain islands to not pay taxes and so on.

Does everyone follow the laws...of course not...including those in our top positions in the USA.

In San Francisco :  it is illegal to store things in your garage(except for your car).

                                      it is illegal for used underwear to be employed in wiping off your cars in a car wash.

                                     Persons classified as "ugly" may not walk down any street in San Francisco.

In San Jose: it is illegal to have more than two cats or dogs.

In Pacific Grove: you can be fined up to $1000. for "molestation of butterflies".

In Portola : no person may carry a fish into a bar.

Which states do not allow wine shipments : West Virginia, Massachusetts, Alaska and Tennessee.

Speed limit on most California highways is 65 MPH.

My point : everyone breaks the laws put out there that are stated as laws.

[chapeau-noir]

Head <-------->Desk

[johnrj1226]

Dude you are in California - where most anything that moves is taxed - you need to also be concerned about what Cali wants folks to report.

Here is what one can find with a simple Google search - heck I only live in Dog Patch, Georgia and found it -

"California 1099 Reporting Requirements for 2024 Note: The state mandates Form 1099-K reporting for payments of $600 or more, if the network company acts as a third-party settlement entity & the payee is an app-based driver."

IRS clearly states one is to declare any  income with or without a a 1099K.  Look up the IRS rules on the net and be enlightened.

[johnrj1226]

A eBay seller  needs to know what the threshold are for any state that  has a state income tax and determine the threshold for issuance of a 1099 K form - many states have  3  digit nos.  Just looked up the state of California and the threshold is $600.  Look (Google) and ye' shall find.

[monroe67]

"Here is what one can find with a simple Google search - heck I only live in Dog Patch, Georgia and found it - 'California 1099 Reporting Requirements for 2024 Note: The state mandates Form 1099-K reporting for payments of $600 or more, if the network company acts as a third-party settlement entity

                           & the payee is an app-based driver.'"

I weep for literacy, even in Dog Patch, Georgia.  
Please note the words I highlighted in a larger size and in bright red.  

Unless and until eBay begins to offer app-based driving services, 
and unless and until this California regulation changes to include internet selling,
eBay will not be issuing a 1099-K report for California state income taxation purposes  to California-based sellers who use eBay's platform for selling things -- in any dollar amount.  

[kensgiftshop]

@califdreamin2004 

Does it really matter?

Report your income like you're supposed to be doing anyway.

[nobody*s_perfect]

---

@stainlessenginecovers wrote:

@monroe67  BUT..................

Also: Some States require a 1099 for something as low as $1000 regardless what the Fed requires

---

Actually several states have thresholds as low as $600.  Massachusetts and Vermont set theirs at $600 in 2018. Here's an old eBay announcement with some of the state thresholds; a few have been added since this date.

https://community.ebay.com/t5/Payments/Form-1099-K-Detailed-Report/m-p/31575590#M106915

[nobody*s_perfect]

---

@monroe67 wrote: ...  Does Google only work on my computer?  Does OP not know that "googling" can help him/her find his/her own answers?  But that's probably not important right now.  

                                                        The IRS has issued guidance for 2024.  

First -- note the date:  November 26, 2024.  That was just last Tuesday, five days ago.  
Not sure if eBay has tried to pass the info along to sellers.  ... I think maybe Google DOES only work on my computer.   Maybe I should charge.  

---

Here's a handy link to the recent announcement from the IRS.  IMHO it should be pinned to the top of this board, which has already seen at least two other threads in the past few days that include this IRS announcement.

https://www.irs.gov/newsroom/irs-provides-transition-relief-for-third-party-settlement-organizations...

[monroe67]

"Here's a handy link to the recent announcement from the IRS."

When I clicked that link, it took me to an eBay page dated February 1, 2021, so it's a couple years out of date.  

"Form 1099-K // Detailed Report

. . . . .

‎02-01-2021  08:00 AM

As of January 29th, form 1099-Ks were uploaded and made available to eligible sellers in Seller Hub & My eBay. Sellers who sold over 200 items and $20,000 in 2020 while in managed payments should have received a 1099-K from eBay. . . . . . ."