I just got paid. EBay has decided they need my ssn NOW. Do I ship my item or what?

[passiflora_farms]

I just sold an item. I purchased an expensive label, printed it out, and was ready to take it to UPS. THEN, eBay sends me notice that my payout is on hold and I need to give them my social security number, or else I will not get my money. I though the limit was still 12,000, not 600. I cancelled my listings I just put up, and will no longer sell. BUT- What will happen to this money? Should I cancel the sale, disappoint the buyer, and keep my item and lose the cost of the label, or what?

[stephenmorgan]

If you cancel the Shipping Label through eBay, you should get a refund in three weeks or so.

If you cancel the order eBay will likely charge you their same commission Fees as if you sold the item and they will put a Defect on your account. If you are not going to be selling anything then the Defect won't affect you much. Too many Defects and then you a penalized with higher Commission Fees from eBay for a while.

Why you do not want to give your Social Security Number?  To get your money you would also have to provide a Bank Account and allow eBay access to it.

[asset_liquidators]

You have to provide your ss# in order to get payments. Why would you not just supply the necessary info to get paid?

[reallynicestamps]

Yes. Ship.

EBay needs your SSN and checking account information to process your Managed Payments payment.

The SSN is for the taxman, and the forms they will send you will help you to make your income tax correct next year.

The checking account is where they send your payment.

If you are already registered for Managed Payments, they are double checking that your account has not been hijacked.

As an occasional seller, (five sales in three months, one FB as a seller in a year) and with a sudden jump in value of those sales ($20 to nearly $200) the algorithm robots are probably alerted.

Cancelling all your other listings probably made them even more suspicious.

I don't know where you got either $12,000 or $600.  EBay has said they will be sending forms to sellers with their gross sales to help with income tax payment, which has panicked some sellers who are either poor readers or not paying taxes on their earnings.

[ryry-jj]

Honor the sale, ship the item, give ebay your SSN.  If over $600, you'll receive the 1099,  report and file your income taxes accordingly.    If you want to continue to sell in the future, that is all up to you.

[nuclearomen]

doesn't matter what limit is, $1 - $10,000 whatever, in order to get paid by Managed Payments you must go through the process like every other seller had to and provide the required information, includes SSN. 

DO NOT Cancel the sale, send the item the buyer purchased, your failure to provide the needed information to Managed Payments is not the buyers fault, provide the info requested and ebay will release your funds for payout when it's approved. 

[nobody*s_perfect]

I don't know where you heard $12,000.

Many states have passed laws requiring 1099-K's at thresholds ranging from $600 to $1500.  So it makes sense for eBay to require a seller's SSN as they approach $600 because at any time this year the seller could relocate to a state that has a $600 threshold.  

The official federal threshold is $600 but the IRS has been delaying implementation; last year they announced that the threshold for 2023 would be $20,000 and that they planned to have a threshold of $5000 for 2024, but that is not confirmed yet.  

Your choices here are: (1) provide eBay with your SSN so you can get paid, and ship the item; or (2) cancel the shipping label and also cancel the transaction.

[ckimodog]

@passiflora_farms 

If you are a seller on eBay or any internet site, it is required by law to remit your SSN for tax purposes.  Again, it's the law. 

[kensgiftshop]

Ship it and provide your SSN so you can be paid.

No, it's still $600.

[fern*wood]

...or what?  I would give my SS number and carry on.  I assume you are selling to make money, so I'd want to get the money.   I also guess since you mention possible thresholds for receiving a 1099k, it seems you must think not receiving one means you don't have to report your sales.  That's simply not the case.

[fbusoni]

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@passiflora_farms wrote:

I just sold an item. I purchased an expensive label, printed it out, and was ready to take it to UPS. THEN, eBay sends me notice that my payout is on hold and I need to give them my social security number, or else I will not get my money. I though the limit was still 12,000, not 600. I cancelled my listings I just put up, and will no longer sell. BUT- What will happen to this money? Should I cancel the sale, disappoint the buyer, and keep my item and lose the cost of the label, or what?

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You've sold hundreds of items, presumably been paid for those items, and only now, eBay is asking for your SSN?  

I'm sorry, that makes no sense to me.

eBay has had my SSN since 1999, when I signed up.

[nobody*s_perfect]

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@fbusoni wrote: ... You've sold hundreds of items, presumably been paid for those items, and only now, eBay is asking for your SSN?  ...

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OP has only one feedback as a seller within the past year.  Most of their 291 fb as a seller is so old, the listing titles don't show up any more. So maybe managed payments is new for them.

[funfactorychannel]

if your on some govt aid any form of income over x amount will eliminate them from the program. thats why old people who win at casino and on govt subsidies need someone to cash their winnings.

So giving their ssn is the last thing they want to do. 

[bonjourami]

" I cancelled my listings I just put up, and will no longer sell."

Uh, you still have listings.

[a_c_green]

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@bonjourami wrote:

" I cancelled my listings I just put up, and will no longer sell."

Uh, you still have listings.

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I noticed that too.

As for the OP's main concern: if you're that low over the 1099-k threshold, just barely enough to trigger the report, you will find that once you've deducted your expenses, fees, postage and whatnot, the net amount left behind (the amount on which you are actually taxed) will hardly move the needle on the income tax to be paid, compared to what you'd have to declare without that sale. In short, it's not worth all the agony. Just sell what you need to sell.