Why did I get a 2021 ,, 1099-K form????

[for-sale-great-stuff]

I am familiar with the $20,000 and 200 transactions for 2021. But I had 46 transactions and $23,500 in sales. So I got a 1099-K today from eBay talking about Third Party Network, also they checked a box that reads PSE??? I am not running a business, but was cleaning out my basement of a lot of stuff accumulated over several years..

What gives???

[nobody*s_perfect · Accepted solution]

Many states have thresholds that are lower than the federal level.  eBay seems to have decided that California has joined the long list of states that require a 1099-K if transactions exceed $600. Here's a memo from last year, a couple of states have been added since them (Missouri etc.):

https://community.ebay.com/t5/Payments/Form-1099-K-Detailed-Report/m-p/31575590#M106915

[antiqjett]

I too have received a 1099-k for my sales on Ebay. Impossible to get a hold of anyone on Ebay or to get an answer even if I did. Farming out calls to other countries is no issue, but at least let the people answering the phone have some knowledge to give proper answers to questions. Did you know that on your report on Ebay they have included shipping in handling and taxes collected to your gross sales total! This is so WRONG! I made $16 k which is under the reporting amount but because  they included those other amounts of shipping and taxes, it put me over the $20k mark! Now they have sent my 1099-k to the IRS? Your social security number is only blocked out on YOUR form. The one Ebay sent to the IRS has your whole SS# on it. Checked on the IRS website and  found Instructions for Payee for 1099-k for and it states this on the instructions.  Read somewhere on the IRS website that we should be able to send in a corrected 1099-k for filing with those amounts taken off and a letter of explanation as to why it was corrected. I will be filing one of those today. Good luck to all of you out there that should not have been reported to the IRS. Now the total for 2022 in sales is $600.00. I guess there will be a lot of people jumping ship from selling on Ebay! Count me as one of them. I'm done. 

[gmartini311]

Me too-I am a single mom who sells clothing and my dads die cast cars that we already paid tax on when we purchased.  Now another tax when we sell that is included as income?  I do not have a business-this is more of an online garage sale for me.  My God this is ridiculous, I am in crooked Illinois, I called the "3" politicians only to be hung up on from Duckworth's office, Durbin's office was closed and the other one said he would pass the complaint.  PLEASE CONTACT YOUR POLITICAL OFFICES TO HAVE THIS CHANGED.  I received my form yesterday-a whopping $3K in sales.......for 2021 and I have to claim this as income??  **bleep**

[myescape]

Even if you were not issued a 1099 the law has always required you report your sales (even garage sales)but many people did not so the law was changed to be enforceable

[azh-71]

Thank your state lawmakers.

[nobody*s_perfect]

Instead of having a snit and getting on the phone, it would have been a better use of your energy to figure out the proper way to report this so you don't end up being taxed on the full amount.

[stainlessenginecovers]

So you had a few hundred stereos and electronics sitting in the basement? 

[mega-ma-roo]

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@antiqjett wrote:

Did you know that on your report on Ebay they have included shipping in handling and taxes collected to your gross sales total! This is so WRONG!  

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Form 1099-K | eBay

The 1099-K does not include taxes collected by eBay. It also does not include returned items/refunds you made during the year. It does include all income eBay paid to your account as they are required to do. This income does include shipping and handling charges because those are funds you did receive.

You can use Schedule C to document your expenses, including shipping charges, eBay fees, cost of goods sold, refunds, and other allowable expenses.

[kensgiftshop]

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@gmartini311 wrote:

Me too-I am a single mom who sells clothing and my dads die cast cars that we already paid tax on when we purchased.  Now another tax when we sell that is included as income?  I do not have a business-this is more of an online garage sale for me.  My God this is ridiculous, I am in crooked Illinois, I called the "3" politicians only to be hung up on from Duckworth's office, Durbin's office was closed and the other one said he would pass the complaint.  PLEASE CONTACT YOUR POLITICAL OFFICES TO HAVE THIS CHANGED.  I received my form yesterday-a whopping $3K in sales.......for 2021 and I have to claim this as income??  **bleep**

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You've always been required to claim your income, no matter how much it is.

[coolections]

Great news. When you go to your tax person, they will assist you in recouping all that cash. My coworker just got back yesterday from doing his taxes. Claimed $18,000 in Ebay sales and was able to reduce actual income to $2,000. Talk to a professional, they will help you.

[trczybisku]

I will never sell on Ebay  ever again. this site has been going downhill for years, now this tax B S .   I will buy on here but NEVER sell again.  Trying to make some extra money and we are gonna end up with so little it's not worth the time.  

[fab_finds4u]

Can you please explain why you are mad  eBay?  They're not stopping you from selling and they didn't make the tax law.  Apparently you don't  understand that you're supposed to claim your income be it from a part time job working for someone else to make extra money or from babysitting or dog walking or selling your wares on eBay. 

[coolections]

@trczybisku 

Ebay had nothing to do with it. If you insist though, don't forget to remove those 11 listings.

[mma09308mmc]

There were alot of state that decide over a year and a half ago for lower limits. Illinois was one of them. This went into effect over a year ago. Guess you should have looked into that before selling.