Illinois 1099-k question.

[simiesue]

Hi, I am a seller in Illinois.  Will eBay issue me a 1099-k if I have more than 5 transactions that total <$600.  Illinois states that a 1099-k must be submitted if four or more transaction exceed $1000.   I also understand that the federal threshold is now $600.  

[1786davycrockett]

@simiesue 

In case you were unaware, the $600.00 threshold includes shipping charges.

Does the total of your 5 transactions total $600.00, including shipping?

[dbfolks166mt]

     The Illinois 1099-K issuance threshold is a combination of two separate metrics both of which have to have been met to meet the requirements. 

" four or more separate transactions, AND the cumulative total exceeds $1,000."

     However the Illinois requirements become irrelevant if the new Federal thresholds remain in tact for the 2023 tax year which as you noted have a cumulative total in excess of $600. 

[simiesue]

My example would be 5 transactions that total <$600 including shipping.  Thank you.

[dbfolks166mt]

My example would be 5 transactions that total <$600 including shipping.  Thank you.

     From the Illinois law perspective no you did/will not meet both reporting thresholds. You meet the number of transactions with 5 but NOT the total dollar amount of $600. 

     From the Federal law perspective NO you will not receive a 1099 since you did/will NOT make the $600 threshold. 

[nobody*s_perfect]

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@simiesue wrote:

Hi, I am a seller in Illinois.  Will eBay issue me a 1099-k if I have more than 5 transactions that total <$600. ...

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eBay will not issue a 1099-K if your total sales (including whatever buyers paid for shipping and handling) is under $600, regardless of the number of transactions.

[theteamsetguy]

@simiesue ,

Just because you don’t get 1099 doesn’t mean the income from your eBay sales isn’t taxable and vice versa.

[ebooksdiva]

The $600 threshold is for online venues like eBay to submit 1099s for sales starting at $600.00 this includes shipping, those 1099s are submitted to both the seller and the IRS.
Regardless of what the threshold is, sellers should declare any amount earned through online sales even if it’s $1.00 whether you pay any federal taxes on that amount depends on what you write off on your taxes. 

[simiesue]

Thank you.  That’s clear.

[simiesue]

Understood.  Thank you.

[simiesue]

Understood.  Thank you.  

[mam98031]

@simiesue 

Your number of transactions do not matter.  If your Gross money received through Ebay meets or exceeds $600, you will get a 1099K.  That could consist of 1 transaction or 100.  It doesn't matter.