New 1099-K Tax Rules

[ethoste0]

Hello,

As most sellers are now aware, Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales. This new law has been brought to my attention and is proving to be a pain. My main problem is two other people sell on my eBay account. All of us sell different amounts and add various amounts of money towards our sales total. With the new 1099-K rule, it looks like only one person can put in an SSN. I believe this means that one person will have to take credit for all the sales on their 1099-K form. This will be very unfortunate because the other 2 sellers will get out of taking credit for the income we accumulated in 2022. Is there a way to divide the money made/split the taxes between the three of us? I know this is a new subject and nobody has filed yet under the new rules but any help will be appreciated! Thank you!

[genv]

The Main Seller ID simply issues a 1099 to the other two parties, and, then Deducts THAT off their Main Seller Tax Return.

[lloydsteventaylor]

Is this the account you 3 use to sell? Are there any other user IDs? How did you report your 2020 income and how are you planning on reporting 2021 income? I suggest you each get your own eBay account right now.

[caldreamer]

You should have other people get separate EBAY account.    Otherwise, you could get stuck with 1099 and tax liability for entire amount (as your SSN# on this account).

[mr_lincoln · Accepted solution]

@ethoste0   The person who has their SSN on the account will receive the 1099K form ... how you three handle things after that is up to you.

If you don't keep track of who sold what you will have trouble with the other 2 people and getting from them what they owe you for any profit you pay taxes on OR Quarterly estimates you have to pay next year.  THAT is the big concern.  Then there are deductions for packaging materials, mileage driven, etc.  on the IRS Schedule C form ...

Time for the three of you to set up your own accounts ...

Mr. L

[wildpitchsports]

Yeah it's in your best interest to have everyone get their own account.