When does eBay report to the i.r.s.

[lsh2893]

When does eBay report to the i.r.s.

[nobody*s_perfect]

eBay issues 1099-Ks in late January each year.

[rosszonebricks]

If you are asking 'at what point in sales does eBay report to the IRS and issue a 1099k?', you appear to be in Washington state, which currently is > $20,000 and > 200 transactions.

Some debate is still ongoing but that may be $5000 for 2024.

Keep in mind, NOT getting a 1099k does not absolve you from paying your appropriate income tax on sales income.

https://www.irs.gov/newsroom/irs-never-mind-the-myths-know-the-facts-about-receiving-a-form-1099-k-i...

https://www.irs.gov/businesses/understanding-your-form-1099-k

No matter the amount, if you receive payments for selling goods or services or renting property you must report your income.

[caldreamer]

I would assume that EBAY reports income to IRS at the end of the calendar year.   Federal law passed $600 reporting threshold back in 2021 but IRS allowed company a "grace period" to make sure their software track all information properly.    Starting in 2024 EBAY will report "gross sales" over $600 to IRS (this applies to all states).  

https://www.irs.gov/businesses/understanding-your-form-1099-k#threshold

[mike_jayroe]

If I am not wrong, I believe a business must report their income every month to the I.R.S.

[susanb1872]

@mike_jayroe  Sorry but that is incorrect. A business needs to pay quarterly estimated federal income tax. If you are referring to state sales tax, that might have to be paid monthly, but every state has different rules.

[mike_jayroe]

okay. Thanks.

[luckythewinner]

If the total gross payments processed on your behalf by Managed Payments exceeds the threshold for either the federal government (or the threshold for your state, whichever is lower), eBay Managed Payments will file a 1099-K to the IRS to report the gross payments. 

If you have multiple eBay accounts under the same taxpayer ID, then a 1099-K is issued for each eBay account if the combined total for all those accounts exceeds the threshold. 

[cincinyman_45214]

What i don't understand is irs targets people on one time or just selling 5 to 10 items wich dosent make sence, If one counts what device cost us and irs wants tax that a 2ed time ? now busness i can understand a person item is tax twice once when we by it and then when we sell it if i not mistakeing that is bit of over reach,   IF i sold a item for 10k dosent meen i made 10k and here kicker to all this irs own rules state recoreds be keep for 6 years so if i had idem  for 10 years, i have no way to prove what i paid for it,  and 600.00 is good yardsale no more or less, it not busnss or selling a car at loss, what did i miss when lot people loseing money selling stuff now that has be proven to irs ,   there huge diffrence in a person selling for prooft and one trying to make ends meet ,  in short them selling just few things a year cost should be msrp the end, i payed taxes when i got it and not i got pay taxes selling it and dont forget them who bys it has pay taxes again , ??????  how many times dose something have be taxed ? is my quistion

[buyselljack2016]

only read a bit...............  tax second time....................  you are confusing  sales tax with the topic at hand being income tax . people talking about a 1099-K is about "income tax"

[rikum_60]

Hi everyone,

Due to the length of time that has passed since this thread began, we have locked it from future replies. If this is still an issue that warrants discussion, don't hesitate to begin a new thread HERE.

Thanks.