Sales And Income Tax

[lynn_box]

I am a new seller. Tell me if eBay charges sales tax on my behalf or if I should be charging tax. Also, let me know how income tax works on eBay. I want to know if eBay generates yearly income forms for seller.

[the*dog*ate*my*tablecloth · Accepted solution]

The sales tax question is specific to your state and their marketplace facilitator Laws. Since you’re in PA all the sales taxes you need to pay should be collected and remitted by eBay.

By law you will get a 1099 from Paypal or EBay Managed Payments if you have more than $20k and 200 sales during the year. Some States have a threshold of $600 and more may join over time. If you don’t get a 1099 you are responsible for figuring out your total incoming money.

offset to that is your expenses like shipping and product purchases. You need to track those yourself.

[lynn_box]

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@the*dog*ate*my*tablecloth wrote:

The sales tax question is specific to your state and their marketplace facilitator Laws. Since you’re in PA all the sales taxes you need to pay should be collected and remitted by eBay.

By law you will get a 1099 from Paypal or EBay Managed Payments if you have more than $20k and 200 sales during the year. Some States have a threshold of $600 and more may join over time. If you don’t get a 1099 you are responsible for figuring out your total incoming money.

offset to that is your expenses like shipping and product purchases. You need to track those yourself.

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Brilliant! Thank you for kindly helping me with this. 

[blueguy222]

ref "By law you will get a 1099 from Paypal or EBay Managed Payments"
Will ebay combine Paypal payments prior to opting in to managed payments for one 1099?

[bar-29368]

Nope, each will issue a 1099k if you meet the requirements through their payments system.

It's possible a lot of sellers will get one from neither ebay nor PP the first year they change to MP.

[blueguy222]

thank you