The dreaded 1099 K

[12345jamesstamps]

This 1099 k is supposed to be sent to everyone by January 31st...let's see how every platform does...LOL

This year is really complicated for anyone making an extra buck these days.

Many, many have been added this year from many APPs...big changes to how they track your income.

Of course...eBay and Pal Pay is the big one for us here.

But when you see all the other platforms... there is no getting away to reporting that buck you made from 2024 without deductions to help ease the pain.

Those who sell or a made a certain amount on : Etsy, Square, Cash App, Postmark, Stub Hub(a biggie),

Uber, Lift, DoorDash, Facebook Market Place(a new one I didn't know), AirBnB, etc...the list is endless.

I guess now that Tik Tok is back that is added as well I would imagine.

Deductions is your key of course.

Not declaring that 1099k for 2024 maybe nothing will happen for 3 years...but on the 3rd year comes that notice you owe plus penalties. Takes a few years to get notice.

It should be interesting how Pay Pal does it...there's eBay, people sending money to people or companies...I just can't imagine the workload of it from an IRS perspective.

Now granted, anything you made as income should be declared...but we know not everyone does that.

How do people get in trouble if no 1099K was legally sent to them for like selling for something like 200 bucks...I don't know. Does anyone knows? Probably only someone from the IRS can answer that.

My tax accountant H & R Block couldn't answer it...just kept getting the words 'you need to declare all income from making money'...LOL

[dy60609]

Other than just some general info the ebay community boards would not be my choice of places to accept "tax info" from.

[dbfolks166mt]

     I have been getting 1099-K's for several years and have never had any issues getting them from any platform or 3rd party financial processor on time. Given the potential for heavy fines to the entities for not meeting the deadline most companies are pretty much on the ball. 

[femmefan1946]

I'd recommend Hugh Woods International to anyone running a collectibles business.

They are a UK company also working in Canada and the USA.

They are the insurers for the American Philatelic Society and not only insure collections and dealer stock at their shows and exhibitions, where there can be millions of dollars in value on display, but also the circuit books, which send books of stamps some with very high values, from one collector to another who choose and pay beforesending on to the next collector. A circuit can be a couple of dozen collectors before returning to the APS. And HWI insures those books.

We insure our stock and our personal art collection with them.

[monroe67]

"I was thinking of doing a post on deductions of what a seller can use to help some who made than $6000. and beyond...."

Six Thousand ?

eBay will issue 1099-K forms for 2024 to all eBay sellers whose gross sales were $5,000 and more.

eBay will issue 1099-K forms for 2024 to all eBay sellers whose states of residence require one for a lower dollar threshold.  

Those are statements of what eBay is required to do.  Required by Laws.  

eBay sellers who are United States federal income tax payers are expected and instructed to fill in the tax return form 1040 (or appropriate version), listing all their income from every source, including any and all money they earned from selling on eBay.  Even if those taxpayers do not receive a 1099-K form from eBay.  Even if those taxpayers had gross sales of only $1.00.  

eBay issued an Announcement on December 9, 2024, about the 2024 1099-K threshold amount.  The last few sentences of that announcement disclaim that eBay cannot and does not provide tax advice.  They also suggest that eBay sellers consult with professional tax preparers.  A professional tax preparer knows which questions to ask to determine what deductions the taxpayer can claim legally.

[monroe67]

"Other than just some general info the ebay community boards would not be my choice of places to accept 'tax info' from."

Imagine trying to convince a tax auditor from the IRS that you wrote some numbers on your tax return form because some "Pathfinder" on the eBay Selling Community Forum said it was the right thing to do.  

[monroe67]

"Schwab said they will do their 1099's by Feb 28th. What?? Are they allowed to do that??"

"Do" what?  And which variety of "1099"?  There are several.

Way back, 40-plus years ago, working in a savings and loan association, I was deeply involved in issuance of Form 1099-R, which reported final distributions from IRA accounts.  Our deadlines were January 31 to the account holders, and then February 28 to the IRS.  Those intervening four weeks allowed account holders to contact us to correct addresses, or perhaps typos in their Social Security Numbers, and in very rare occasions even correcting the dollar amounts.   The original 1099-Rs were all computer-generated, but our corrections had to be manually typed on a six-page document issued by the IRS, with carbon paper sandwiched between the pages.  NO typos . . . . .  Not a fun task.    

Let Schwab do what they will.  Schwab will have to face the IRS if they miss a deadline.  

[mam98031]

I don't think this is a concern?  Ebay hasn't missed the deadline in past years. 

We have always used Turbo Tax [or similar software] to assist us in doing our taxes for decades.  It works very well and will be of enormous help to those that are unsure as to what is deductible and what isn't.  What forms that need to be filled out and stuff like that.

Schedule C details that is really useful for many sellers.

https://www.pdffiller.com/jsfiller-desk13/?flat_pdf_quality=high&mode=force_choice&requestHash=2672a...

And the instructions.

https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

[dnasilver]

Just because you moved does not mean you had to find another CPA. We have used the same CPA and Tax attorney companies for almost fifty years (small family generational owned). You are right, once you find a good one, keep them. We have changed our legal residence numerous times. 

[dnasilver]

The door is wide open. Especially if you operate internationally. There is a reason the uber rich pay virtually no taxes.

[chapeau-noir]

This is a subject where people just love to invent obstacles and then fall over them.

[blacktopautoparts]

The year before we didn't get all of ours from eBay till the end of the month. It sucked having to wait, but what can you do. I just can't believe the amount of people that on FB groups, reddit and other platforms talk about dodging their reselling taxes. There are so many deductions people can take when doing taxes that it is not worth it and getting yourself into trouble with the govt as much as it sucks having to pay them even more than what they should be getting. LOL!

[luckythewinner]

This year is really complicated for anyone making an extra buck these days.

Not for me.

I will do my taxes exactly as I have done in the past.

And since my Schedule C income will meet or exceed my 1099-K, the additional work will be trivial.

I just can't imagine the workload of it from an IRS perspective.

It is all done by computers. The workload is negligible.