eBay

tealt · ‎02-01-2022

Having just read on another thread that a California seller was issued a 1099K for less than $20,000 in sales, I went to check to see if I got one.

Yep, there it was. A 1099K for $3900 processed by MP on my behalf for the tax year 2021. [and I am not an Uber or Lyft driver].

Having read the following on the eBay Announcement/Help/whatever page:

The new tax reporting requirement will impact your 2022 sales and taxes that you file in 2023—it will not apply to your 2021 sales and taxes that you file in 2022.

Whether I get a 1099K for 2021 makes no difference to me, since I've used Sched C to report income for the last 40+ years, BUT I am shaking my head.

Has that 1099K be transmitted to the IRS? Will it soon be transmitted? If yes, some EBay sellers are in for an interesting experience when they file their federal taxes for this year.

What about transmission to states' income tax collecting entities that don't (yet) have a $600 1099K law?

Or, is this yet another of eBay's truly amazing glitches?

nocoolnamejane · ‎02-01-2022

California lowered its reporting threshold to $600 on Jan 01 2021.

She ❤︎ Her ❤︎ Hers

tsme35 · ‎02-01-2022

I know a few others getting 1099 for 2020 and 2021, a friend of mine got those a has a ticket on both, seems to be a glitch, according to ebay they should not be sending in 1099's for those years, supposedly working on an update.

AND yes my friend files taxes but didn't reach the limit and if it gets sent in will trigger an audit for something he's already filed which means a couple hundred dollars to pay the accountant to fix.

I had one generate for August 2021 a couple weeks ago for 2020 but I got a 1099 in January 2021, I think they ran their new $600 limit, shot gun it and fix the glitches afterward. Pretty normal for all ebay's program, run then fix

tealt · ‎02-01-2022

@nocoolnamejane wrote:
California lowered its reporting threshold to $600 on Jan 01 2021.

According to what I read on the CA Franchise Tax Board site, the $600 threshold only applies to 2021 income for ap-based drivers (which I am not). The $600 threshold for all CA will start in 2022, to match the IRS reporting requirements.

"As of January 1, 2021, you may receive a 1099-K if you receive annual gross payments of $600 or more in settlement of third-party payment network transactions and are an app-based driver, regardless of the number of transactions.

For returns for calendar years beginning in 2022, you may receive a 1099-K if you received payments:

From payment card transactions (e.g., debit, credit, or stored-value cards)
In settlement of third-party payment network transactions above the minimum reporting threshold of $600 in annual gross payments."

kwilli-2357 · ‎02-02-2022

I can confirm in MO, I know 2 people who received a 1099 for both 2020 and 2021 this week.

iart · ‎02-02-2022

It shouldn't matter.

Whether you get a 1099 or not, you're supposed to pay taxes.

onefootflipper · ‎02-02-2022

We are in Missouri and my wife's account got a 1099 for 2021 and her account didn't even meet the sales threshold for generating one in Missouri.

tealt · ‎02-02-2022

@iart wrote:
It shouldn't matter.

Whether you get a 1099 or not, you're supposed to pay taxes.

Even though I have been paying income taxes on eBay money since I joined in 1999, it does matter to me because eBay has issued a 1099K for me for 2021 without any announcement. My MP processed money for 2021 is only about $3900.

I found this 1099K in MP Payments only because I read threads on this board.

Question:

Is this 1099K going to the IRS or the CA Franchise Tax Board, or both? Or is this one of eBay's never-ending string of glitches that drive sellers crazy?

I need an an answer to this question because when TurboTax asks about 1099's I've received, I need to give an accurate answer.

goodbrakes · ‎02-02-2022

eBay has been generating 1099's for many years. Problem was that nobody cared to look for them.

If you were selling and doing your taxes correctly you should have printed that out every year you sold on eBay. Now those that do may get checked if they had any says in any of the previous years by the IRS. And yes they can go back 7 years to check. and they do have the info.

lightlily_arts · ‎02-02-2022

I've never received a 1099-K previously from eBay as I never made enough money. I've used my monthly statements for tax purposes. I see that they have broken it down and show the totals for each month. However, the reported totals do not match my monthly statements and the difference is significant. Are they including the state taxes paid by the buyers as part of our gross income?

escuintla · ‎02-02-2022

It was announced in 2020.😥

As of January 1, 2021, you may receive a 1099-K if you receive annual gross payments of $600 or more in settlement of third-party payment network transactions and are an app-based driver, regardless of the number of transactions.

2021 Publication 334 (irs.gov)

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If you haven't paid for your item, you're a winning bidder, not a buyer!
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tealt · ‎02-02-2022

@escuintla wrote:
It was announced in 2020.😥

As of January 1, 2021, you may receive a 1099-K if you receive annual gross payments of $600 or more in settlement of third-party payment network transactions and are an app-based driver, regardless of the number of transactions.

2021 Publication 334 (irs.gov)

"...and are an ap-based driver."

But I'm not an ap-based driver.

Why would eBay be sending 1099K's to Uber/Lyft/whatever drivers at all? The responsibility for sending 1099k's to those folks lies with Uber/Lyft/whatever company, not eBay.