eBay

mysterytree · ‎12-29-2021

Is Ebay going to report sales income to the IRS? I have heard that anything over $600.00 would be reported and the sellers will get a income form to add to their yearly income taxes. Does anyone know about this or is it just hear say?

wildpitchsports · ‎12-29-2021

@fern*wood wrote:
@wildpitchsports wrote:
Sure will. It's not an eBay issue, it's a US Government issue signed into law by the current president in March of 2021.
You say this in a way to insinuate that reporting your ebay sales on your income tax filing wasn't required prior to this year and this administration. You also post that it has been required all along, so why do you are try to have it both ways in your posts?

All I am trying to do is bring awareness of the simple fact that the 1099-K reporting change from 200/20K to any/$600 (to actually get one) was signed into law in March 2021 by our current president for sales starting 1/1/22. Speaking of my post, like I said there are tens if not hundreds of thousands of sellers online that weren't aware of this form producing threshold change.

kensgiftshop · ‎12-29-2021

@mysterytree wrote:
Thank you. I am a casual seller . Just selling items from my home/garage sales and WAY under $20,000 in sales.

What does that have to do with anything?

You're supposed to be reporting your income, no matter how much or little it is.

Have a great day.

skeletonstore · ‎12-29-2021

Massachusetts has been since 2018. Paypal 1st started 2010 or 2011(can't remember).

kensgiftshop · ‎12-29-2021

@mysterytree wrote:
How can this be fixed? Is Ebay working on this? They will be losing a lot of sellers over this.

What is there to fix?

The only thing that's changed is the amount where Ebay has to report to the IRS.

You continue to report your income like you've always been required to do.

Have a great day.

skeletonstore · ‎12-29-2021

The general rule was always a seller's sales total was double their feedback score. I don't know if that has changed. Granted it's a 20 year old account but it appears sales are healthy.

my-cottage-books-and-antiques · ‎12-29-2021

@mysterytree Did you bother to read the linked announcement I provided?

Yes, ebay is trying to get the threshold increased. (And I'm sure ebay is not alone). Increasing the threshold would save ebay a lot of "back office" effort, since complying with a law like this requires a lot of paperwork (or computer work) on eBay's part.

However, even if ebay is successful in getting its reporting burden reduced by increasing the threshold, it doesn't alter the fact that you are supposed to be reporting income regardless of this threshold. Nothing ebay does will alter that fact. So, even if the threshold was to be changed back to 20,000, that would reduce the workload for companies like ebay and PayPal and Mercari....but would not alter your reporting responsibilities.

mysterytree · ‎12-29-2021

Yes, Thank you.

luckythewinner · ‎12-29-2021

@mysterytree wrote:
Is Ebay going to report sales income to the IRS? I have heard that anything over $600.00 would be reported and the sellers will get a income form to add to their yearly income taxes. Does anyone know about this or is it just hear say?

Let me refine your statement a bit.

For tax year 2022, payment processors are required to report the total dollar amount of the payments they process on a taxpayer's behalf if the total of those payments exceeds $600. So "eBay" is not reporting "sales". Managed Payments is reporting payments processed.

The 1099-K is an informational for sent to the IRS to reflect the total dollar amount of the payments they process on behalf of a taxpayer. So "sellers" will not get an "income form" to "add" to their "taxes". Taxpayers will receive a 1099-K form reflecting payments processed that they need to account for on their tax return.

Does anyone know? The 1099-K has existed for a decade. The recent change to lower the reporting threshold from $20K to $600 has been widely discussed here and elsewhere, and eBay has posted announcements and sent messages and mentioned it in several seller updates.

mysterytree · ‎12-29-2021

Thank you . I understand now.

mysterytree · ‎12-29-2021

Thank you

luckythewinner · ‎12-29-2021

@mysterytree wrote:
How can this be fixed? Is Ebay working on this? They will be losing a lot of sellers over this.

It can only be fixed by Congress.

eBay lobbied against this provision, and asked sellers to lobby against it too.

https://www.ebaymainstreet.com/

eBay loses sellers all the time over many issues.

fern*wood · ‎12-29-2021

@wildpitchsports wrote:
@fern*wood wrote:
@wildpitchsports wrote:
Sure will. It's not an eBay issue, it's a US Government issue signed into law by the current president in March of 2021.
You say this in a way to insinuate that reporting your ebay sales on your income tax filing wasn't required prior to this year and this administration. You also post that it has been required all along, so why do you are try to have it both ways in your posts?
All I am trying to do is bring awareness of the simple fact that the 1099-K reporting change from 200/20K to any/$600 (to actually get one) was signed into law in March 2021 by our current president for sales starting 1/1/22. Speaking of my post, like I said there are tens if not hundreds of thousands of sellers online that weren't aware of this form producing threshold change.

Again, why post to remember this at the ballot box when you know this has been law forever. You also know the reporting means nothing in regard to the law that required reporting all along. You know exactly why you are doing with your side comments.