Questions about the 200 Transactions that count towards a 1099 form.

[docstill299n]

I know that until next year, the threshold for a 1099 form is $20,000 AND 200 transactions.  However, I seem to recall that repeated sales to the same Buyer only count as a single transaction.  Is that true?  So, if I sold the same Buyer something in April, June and August, that only counts as one transaction?  For sure?

Also, do cancelled or refunded/returned transactions count?

[nobody*s_perfect]

"I seem to recall that repeated sales to the same Buyer only count as a single transaction.  Is that true? "

No, that is not true.

[kensgiftshop]

@docstill299n 

No, that would be 3 transactions.

[dbfolks166mt]

     For some of us the Federal Law is irrelevant. In September of 2020 the state I live in has set the limit at $600 but 0 transactions. Again really irrelevant since I was paying taxes on income even before they passed the law. 

     Several states have passed their own laws and set their own limits you may want to check the laws in your state to see what the thresholds are although it shouldn't really matter from a tax perspective. 

[luckythewinner]

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@docstill299n wrote:

I know that until next year, the threshold for a 1099 form is $20,000 AND 200 transactions.  However, I seem to recall that repeated sales to the same Buyer only count as a single transaction.  Is that true?  So, if I sold the same Buyer something in April, June and August, that only counts as one transaction?  For sure?

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What you seem to recall is not true.  

[docstill299n]

OK, thanks.  Not that I doubt anyone, but is this written somewhere by eBay?

As for my recollection - it may have been PayPal that had that policy.  Maybe they still do - I will check.

What about cancelled or refunded transaction?  Anyone know

[eleanor*rigby]

While those figures may determine whether you'll be issued a 1099-K, that's all they do. The issuance of a 1099-K has no bearing on your obligation to report any and all income to the IRS.

[nobody*s_perfect]

This is not a policy of eBay or PayPal, this is a federal law. All of your funds received are counted, regardless of whether it comes from multiple buyers, whether there was a refund or cancellation, etc.  Every penny you took in shows up.

You might be thinking of the eBay feedback policy:  Feedback for multiple transactions in one week only count as one in your feedback score.

Why does it matter? As noted in a post above, you are supposed to report your eBay income even if you don't get a 1099-K from them.

[docstill299n]

Me again.  So, if a Buyer orders 2 of a single item at one time, I guess that is 1 transaction?

If they order 2 different items, add to cart, and make a single payment, is that still 1 transaction?

Is there any way to see how many transactions eBay has counted to date for me since January 1st?  I see "transactions in last 12 months listed", but that includes part of 2020.

Thanks.

[docstill299n]

OR - maybe they count only payments from eBay to me (bank deposits)?  That would make sense, and a single deposit transaction could span several purchases.  Previously, before MP, the money went striaght from Buyer to Seller - Now, eBay is the only one paying the Seller.  Anyone know?  Thanks?

[kensgiftshop]

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@docstill299n wrote:

OR - maybe they count only payments from eBay to me (bank deposits)?  That would make sense, and a single deposit transaction could span several purchases.  Previously, before MP, the money went striaght from Buyer to Seller - Now, eBay is the only one paying the Seller.  Anyone know?  Thanks?

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No, it doesn't matter how many bank deposits are made.

Each sales transaction, is a transaction.

[eleanor*rigby]

I'm curious where you're going with all this . . . 

[dryophelia]

@docstill299n 

These are questions that you should be discussing with your acceptant, not eBay strangers. 

As already stated, you need to report ALL your income. Thankfully, a 1099k will be issued for those who qualify. It makes the accounting easier for you and your tax professional. 

There was a post this month about a seller that got a letter from IRS and they owed thousands of dollars-from 2019 (or was it 2017?. It matters not, really.) 
Don’t mess with the taxman. Be grateful for the 1099. 

[chapeau-noir]

It's the payment processor (Adyen) that serves this data - eBay just compiles it for us.  The payment processor doesn't care if payments go to the bank or are canceled or anything else.  Adyen, the payment processor serving eBay, also serves Etsy and Poshmark (and possibly Mercari) - they just handle the money and crunch the numbers - eBay is just another of their clients.  

[asset_liquidators]

You still have to pay income tax whether you get a 1099 or not. It is not a threshold for whether you have to pay taxes or not. It is just a threshold for whether ebay, paypal, etc needs to issue 1099's.