NET sales less than $600 due to refund. Why do I need to provide my SSN to ebay?

[watchingwatching]

I sold about $650 this year, but $500 of that was refunded as the seller did not see the Local Pickup Only line. So my actual sales this year are only $150. . . well below the $600 threshold.

Is the requirement to provide SSN for GROSS sales (that do NOT take into account refunds) an eBay requirement? Or is it the IRS itself that is requiring that if gross sales are over $600, but net sales are less than $600 (where refunds are subtracted out) then SSN must be provided?

I do not see any logic to giving the IRS info to tax me when my total net sales are not taxable (ie <$600) . . . according to what eBay would send to them, I'd owe taxes on money that I refunded.

[lepke1979]

Yes. It's based on gross sales (excluding sales tax I think).

IRS will see you made $650. You'll report $500 was refunded. Not to mention report other costs (COGS, shipping labels, mileage, etc.).

So your $650 will become $150. And that will get whittled down a bit more. Maybe even into the negative.

[albertabrightalberta]

Is the requirement to provide SSN for GROSS sales (that do NOT take into account refunds) an eBay requirement? 

Yes. Your 1099K will include the amount of the full payment of your sales. When you prepare your taxes, you will deduct your expenses to get to the net. 

Are you aware that even if you sell $75, you are supposed to claim the income? You may not have made a profit and may not owe taxes but ALL sales are reportable, NOT just if the total is $600 or more.

[watchingwatching]

Yeah, I don't mind claiming the income. I always have regardless of the amount. I don't like giving out my SSN to anybody other than who I legally HAVE to give it to according the United States law (vs eBay policy).

[luckythewinner]

NET sales less than $600 due to refund. Why do I need to provide my SSN to ebay?

Because the law that Congress passed requires them to report the gross amount of payments processed. 

[luckythewinner · Accepted solution]

---

I don't like giving out my SSN to anybody other than who I legally HAVE to give it to according the United States law (vs eBay policy).

The 1099-K reporting rules are not "eBay policy", they were established by a law passed by Congress.  

[watchingwatching]

That's the answer I was looking for . . . .that Gross sales regardless of refunds are what is required by law, vs required by eBay because they want to.

[downunder-61]

---

@watchingwatching wrote:

Yeah, I don't mind claiming the income. I always have regardless of the amount. I don't like giving out my SSN to anybody other than who I legally HAVE to give it to according the United States law (vs eBay policy).

---

Yes you legally have to supply your SSN to eBay

[dnasilver]

It is not eBay policy it was a law passed by the US Congress - the group who makes the laws of the land - 

Curious do you have a smart phone? If so, someone somewhere knows exactly what you have been buying, where you have been going and to whom you have communicated with, let alone what your finances are. More people have your SS# than you have any idea.

[johnrj1226]

All Money Processors require you SSN.  You gave it to PayPal when they were  eBay's Money Processor.  eBay & PayPal  got divorced on friendly terms and now eBay via Ayden is the new Money Processor.  Until you get hooked up  with the new eBay Managed Payments program and  their Money Processor & a bank account - checking, etc  you won't receive any funds from your sales transactions. Read how to -

https://www.ebay.com/help/selling/getting-paid/start-getting-paid-ebay?id=4795&st=12&pos=2&query=Sta...

[johnrj1226]

Curiosity questions for your - I'm confused

1.  Did you mean the BUYER in this sentence ?? -

‎

"I sold about $650 this year, but $500 of that was refunded as the seller did not see the Local Pickup Only line."

2.  If  your listing(s) stated Local Pickup Only why would you have to refund anything???

[johnrj1226]

This is not a new law but a  change in the threshold that a 1099K needs to be issue for $10K revenue to  $600.  Several states had that had a  state income take already had established the $600 requirement.  The feds  just made it easy for all - they  like extra  revenue too so they can PACR more.

[watchingwatching]

As long as the threshold change is of a law that says eBay has to send me a 1099 for gross sales, even if net sales are under $600, then that's what I'm looking for.

[watchingwatching]

Ha! Yes ""Buyer"

It was a $500 amp. I don't need to sell it so badly that I need to screw somebody that made an honest mistake.  They may want to buy something else in the future that I will ship.

[johnrj1226]

Have been to  4 county fairs, 5 rodeos and a goat roping contest and  never heard any thing like this last  post explanation.