Sales Reported to IRS

[mysterytree]

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?

[dq3141]

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@my-cottage-books-and-antiques wrote:

@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.

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Aside from the automated processes already in place, which will have to generate more forms and send more emails, there's no additional "back office" effort required for this change. eBay has been producing 1099k's since 2018, when they introduced Managed Payments, and they've been handling the Federal threshold AND the lower thresholds set by several states.

There's no additional human effort here, aside from changing a few pieces of data that specify the threshold by state.

[nobody*s_perfect]

The programming will actually be simpler when the same $600 threshold applies to every state.

[jayjaspersgarage]

"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?"

This is a prime example of how the educational system has failed us all.  Wait until the flea market sellers who use those new fangled payment processors start getting 1099Ks.  There will be another thousand threads on the flea market selling boards I suppose.

Most weekends I hold some type of live sales event be it a yard sale, back of my pickup sale in front of random estate sales or a pop-up sale in a grocery store parking lot.  The first question I get most of the time is "Do you take swipe payments?"  The answer is no.  'Cash' is king.  The second question is "where is the closest ATM?".  THAT is my favorite question to answer because I know my prices are too good to pass up.

For the clueless who think they are operating a side hobby biz on-line.  The gig is up!  Save your receipts and include you on-line sales in your annual income tax filing.  There are many articles and books explaining how to write off dozens of expense categories legally.  Most sellers in my range can offset every sale 100% or close to it so that the net effect, if you have a real job 40 hours a week, will be negligible.  You might even end up paying less income tax, imagine what you have been missing out on for how ever long it is you have been playing ostrich? 

[pburn]

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@dq3141 wrote:

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@my-cottage-books-and-antiques wrote:

@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.

---

Aside from the automated processes already in place, which will have to generate more forms and send more emails, there's no additional "back office" effort required for this change. eBay has been producing 1099k's since 2018, when they introduced Managed Payments, and they've been handling the Federal threshold AND the lower thresholds set by several states.

There's no additional human effort here, aside from changing a few pieces of data that specify the threshold by state.

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 Your conjecture would be accurate if eBay issued only online/electronic/digital 1099s; however, they are also delivered in hardcopy via USPS. The preparing, printing, and mailing of those additional forms is all done in the "back office," takes "additional human effort" and will certainly generate additional expense (as in, not free); therefore, your conjecture is not accurate.

[dq3141]

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@nobody*s_perfect wrote:

The programming will actually be simpler when the same $600 threshold applies to every state.

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I don't think the new Federal law prohibits the states from setting an even lower threshold, so they should leave the programming alone. They should also leave it alone because they're eBay, and they break a lot of things when they try to make changes.

[dq3141]

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@pburn wrote:

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@dq3141 wrote:

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@my-cottage-books-and-antiques wrote:

@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.

---

Aside from the automated processes already in place, which will have to generate more forms and send more emails, there's no additional "back office" effort required for this change. eBay has been producing 1099k's since 2018, when they introduced Managed Payments, and they've been handling the Federal threshold AND the lower thresholds set by several states.

There's no additional human effort here, aside from changing a few pieces of data that specify the threshold by state.

---

 Your conjecture would be accurate if eBay issued only online/electronic/digital 1099s; however, they are also delivered in hardcopy via USPS. The preparing, printing, and mailing of those additional forms is all done in the "back office," takes "additional human effort" and will certainly generate additional expense (as in, not free); therefore, your conjecture is not accurate.

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Hard copies are only being sent by request; I don't think many sellers will need that, since they don't get anything else in hard copy from eBay. The minimal "back office" change isn't worth paying to lobby against the reduction in the threshold. But I'm sure you'll disagree.

"We’ll provide your 1099-K through Seller Hub, My eBay or you can ask to have it sent to you by regular mail. We’ll make sure we notify you when you’ve reached the $600 threshold. "

[docsavage2000]

I had been under the impression that all eBay sales even low volume level were subject to IRS scrutiny for a very long time, that the IRS had been stepping up their efforts related to eBay.

[nobody*s_perfect]

Congress has passed laws which require the IRS to step up their efforts related to all sorts of newfangled unreported income, ranging from online sales (eBay, Etsy, etc.), to the gig economy (Uber etc.), to those funny money fake currencies (Bitcoin etc.).

[chapeau-noir]

Came here for the addled thinking, left satisfied.

[pburn]

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@dq3141 wrote:

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@pburn wrote:

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@dq3141 wrote:

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@my-cottage-books-and-antiques wrote:

@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.

---

Aside from the automated processes already in place, which will have to generate more forms and send more emails, there's no additional "back office" effort required for this change. eBay has been producing 1099k's since 2018, when they introduced Managed Payments, and they've been handling the Federal threshold AND the lower thresholds set by several states.

There's no additional human effort here, aside from changing a few pieces of data that specify the threshold by state.

---

 Your conjecture would be accurate if eBay issued only online/electronic/digital 1099s; however, they are also delivered in hardcopy via USPS. The preparing, printing, and mailing of those additional forms is all done in the "back office," takes "additional human effort" and will certainly generate additional expense (as in, not free); therefore, your conjecture is not accurate.

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Hard copies are only being sent by request; I don't think many sellers will need that, since they don't get anything else in hard copy from eBay. The minimal "back office" change isn't worth paying to lobby against the reduction in the threshold. But I'm sure you'll disagree.

"We’ll provide your 1099-K through Seller Hub, My eBay or you can ask to have it sent to you by regular mail. We’ll make sure we notify you when you’ve reached the $600 threshold. "

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From this page:  eBay and Form 1099-K 

If eligible, you'll automatically receive a Form 1099-K in the mail. Alternatively, you can choose to download a copy in Seller Hub and My eBay. It will show payments received since eBay started managing your payments, and includes the gross amount and number of payment transactions, your name, address, and 9-digit Tax ID. This information will also be reported to the IRS and the correct state tax authority, where applicable.

[wildpitchsports]

In a couple of years crypto will have its' own schedule  I am sure

[wildpitchsports]

it's not just eBay - it's every online payment processor - PayPal, Venmo and the like and other 3P sites like etsy, Amazon, Offer Up!, Let It Go and if you mail anything even on Facebook marketplace as well.

[downunder-61]

Apart from the fact that the issuance of a 1099k means absolutley nothing to do with NEW tax reporting laws, it is not as scary as some are expecting it to be, infact many low income seller's/pensioners etc, here will not be affected at all by reporting their income as they always should have been doing.

All the 1099k changes is the fact that the IRS will now receive your 1099k and be aware that you will/should be declaring your eBay income/profits as you should have been since the introduction of Income Tax - ie: always.

Why people keep coming here to admit the fact to all and sundry that they have been evading taxes is beyond me.......

A brief search on this forum will give you lots of chat about this:  Threads on tax law 

So many fish to shoot..........

and all in one easy to find and read barrel........

[this*old*attic]

It isn’t an EBay thing - it’s federal law, all processors (online sales, PayPal, Venmo, Apple Pay, all of them).

[dq3141]

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@pburn wrote:

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@dq3141 wrote:

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@pburn wrote:

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@dq3141 wrote:

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@my-cottage-books-and-antiques wrote:

@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.

---

Aside from the automated processes already in place, which will have to generate more forms and send more emails, there's no additional "back office" effort required for this change. eBay has been producing 1099k's since 2018, when they introduced Managed Payments, and they've been handling the Federal threshold AND the lower thresholds set by several states.

There's no additional human effort here, aside from changing a few pieces of data that specify the threshold by state.

---

 Your conjecture would be accurate if eBay issued only online/electronic/digital 1099s; however, they are also delivered in hardcopy via USPS. The preparing, printing, and mailing of those additional forms is all done in the "back office," takes "additional human effort" and will certainly generate additional expense (as in, not free); therefore, your conjecture is not accurate.

---

Hard copies are only being sent by request; I don't think many sellers will need that, since they don't get anything else in hard copy from eBay. The minimal "back office" change isn't worth paying to lobby against the reduction in the threshold. But I'm sure you'll disagree.

"We’ll provide your 1099-K through Seller Hub, My eBay or you can ask to have it sent to you by regular mail. We’ll make sure we notify you when you’ve reached the $600 threshold. "

---

From this page:  eBay and Form 1099-K 

If eligible, you'll automatically receive a Form 1099-K in the mail. Alternatively, you can choose to download a copy in Seller Hub and My eBay. It will show payments received since eBay started managing your payments, and includes the gross amount and number of payment transactions, your name, address, and 9-digit Tax ID. This information will also be reported to the IRS and the correct state tax authority, where applicable.

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Imagine that, two ebay pages telling people completely different things. Shocking.