mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@mypalrocco wrote:You went through and addressed singular points from my statements, disregarding the entire context. It's eally not worth continuing to converse with somebody that does that.
All I did was respond by each of your postings. Sorry that is something you don't prefer. Others do so they know what is being address. It was not my intention to cause you to be upset.
@chez-desir wrote:I have to assume it starts for 2021 as I just got a note from ebay asking what form I'd like my 1099 delivered.
I have never gotten a 1099 with sub 10K sales, still sub 10k with a 1099 for this year on the way
As has been said MANY times on this thread. The $600 Federal threshold does NOT start until 2022.
With that said, some states require 1099Ks to be filed and their thresholds are currently lower than the federal requirement of 20K and/or 200 transactions.
It appears that your states threshold is $2500. So if it looks like you are going to meet or exceed that this year, Ebay will need your full SSN and you will get a 1099K from Ebay.
Remember that if you were in PayPal for part of the year, PP will report for whatever sales you had run through them. Ebay will ONLY report for whatever sales you had run through MP.
@stephenmorgan wrote:
@chez-desir wrote:I have to assume it starts for 2021 as I just got a note from ebay asking what form I'd like my 1099 delivered.
I have never gotten a 1099 with sub 10K sales, still sub 10k with a 1099 for this year on the way
There is no law saying do not issue a 1099 unless certain amounts are received. Laws are written to state when a certain amount is received then it is mandatory to issue a 1099.
Financial Institutions are required to issue a 1099 if you receive $10 in interest. Last year I received from two different institutions a 1099 for a few cents and one for just over a dollar.
There are all kinds of 1099's. Each type have rules specifically for them. The rules that are for a 1099-int [interest] is DIFFERENT than it is for a 1099R, 1099misc, 1099R, etc.
https://www.investopedia.com/terms/f/form1099-misc.asp
So comparing a 1099K with a 1099INT is simply not the same type of thing.
@mclaurinusa wrote:Everyone - Do not provide free shipping to your customers if you are trying to keep your welfare. Every dollar counts and if you provide free shipping, you will have to go back to every single transaction you sold in 2022 and deduct the shipping costs, unless you keep a notebook throughout the year. This is a ridiculous new rule but I am not on welfare so, it actually will help me add to my full-time income. I can never qualify for nicer apartments because Ebay never sent me a 1099-K due to my sales only amounting to $18,000-$19,000 per year and under 200 transactions. I'll finally be able to move into a condo or something.
Whether you offer Free Shipping on your listings or you go with Stated Shipping, it doesn't make one bit of difference when you are doing your taxes. Everyone should know that using a carrier to ship something is NEVER free even if you offer free shipping. There is a cost. Shipping costs are a COGS [cost of gross sales].
Your bigger issue is however would be the fact that you never claimed your Ebay income on your Federal Tax returns in past years. If you don't qualify for a 1099K does NOT mean your income is not taxable. There would be nothing further from the truth. So go after that Condo you want and make sure for 2021 whether or not you get a 1099K, you claim your income on your taxes.
As to the previous years when you didn't claim your income when you should have, you will just need to decide if you want to leave it alone and hope they don't catch you for tax evasion. I know that sounds harsh, but in reality that is what you did in past years if you didn't claim your income as you were suppose to.
As to your costs. You should have always been tracking them so you can reduce your Gross Income by all your expenses so you pay taxes on your adjusted gross income. If you haven't been doing that, start building your 2021 records right away so you have it when you file your 2021 tax returns.
