mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@crex78 wrote:The original poster already clarified that their Ebay sales is NOT income. Why do people keep harping on this point? Millions of ebay sellers sell everything they sell at a loss from what they bought it from. People using ebay to profit on collectibles fail to realize this.
This has nothing to do with whether or not the seller needs to claim their sales on their tax reports. Whether or not they make a profit has nothing at all to do with it either. But on the other hand, simply claiming the sales on your tax returns does not necessarily increase your income tax amount either. We are all allowed to take deductions for cost of the item, shipping, selling fees, shipping supplies etc.
Don't confuse income with profit, the two are not the same.
If a seller receives a 1099K, they need to show that on their income tax return. If you don't meet the threshold for the 1099K form to be released to you, you still need to show your income on your tax return. IRS has NO MINIMUM requirement for claiming income.
@crex78 wrote:Another IRS cheerleader. The original poster already stated that their ebay sales are NOT income.
I doubt anyone here is an "IRS Cheerleader". They are simply trying to explain what the rules of IRS are. You may not like them, but that doesn't mean they don't exist or that what you are being told isn't factual.
@crex78 wrote:The original poster stated up front that their ebay sales are NOT income. They are not evading income taxes if they do not report their ebay sales.
To suggest that to any seller is to potentially get that person into trouble with the IRS. As I stated before, you are confusing income with the word profit. The two are not the same. I've posted these before, but I'll post them again in the hopes you will read them before you cause someone to get into financial trouble or even legal trouble with the IRS.
FYI, to claim your legally required income on your Tax Returns does NOT mean you will be increasing your income taxes owed. We all have the opportunity to deduct expenses from the income to arrive at our net profit or loss on the money.
https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...
https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses
https://www.irs.gov/businesses/gig-economy-tax-center
https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html
@riv.micha wrote:You understand the IRS can just look into your bank account. you need to report sales.
That is exactly why some sellers protested having to supply they bank account to Ebay for the MP program. IRS couldn't do that with a PayPal account.
You are in a state that has their own requirements for the 1099K. If you are ONLY selling stuff you previously owned, then use the links I provided just a couple post back to help you value the items if you don't have receipts.
@mm_2770 wrote:I noticed that you said this information is true as of October 2020 - I'm currently in the process of trying to find if any updated information is available on the official Maryland taxes website. I assume the $600 number is still the current threshold, but it's certainly proving to be a little difficult finding that information in plain text on the state government's own site.
Maryland isn't on that list I posted. Here is a link to a more current list and Maryland is on it. It says it was last updated January 23,2023.
@pluscontact wrote:Hi well got my 1099 today. Less than $20,000 and be less 200 transactions for tax year 2022
so they are out
Your state requires a 1099K to be issued at $1000.
@netboy27 wrote:Yup, I got my 1099 today as well. I thought I was off the hook...guess it was just wishful thinking.
I suppose 2022 tax year I'll be changing my ebay from a hobby to a business...my accountant will love it..
Yes you need to do that. If you have been telling the IRS it is a Hobby Income, you can't take any deductions for that. They changed that law back with the previous President.
