taxes and multi account question

[dakydez09]

My husband and I both sell using separate ebay and bank accounts but file taxes together at the end of the year…..Do we have a $600 limit per person or because we file together its $600 total for both combined?    

And Totally separate question… My mom gave me a bunch of her things to sell.  If I make an account for her can I sell and ship those items from my house or will that effect my account?

[tryno2]

If you and your husband file a joint return then what you are calling a limit doesn't matter.  The limit is the level at which EBay will be sending out 1099s.  Whether you get one or not you still owe taxes on your profits whether $1 or $1,000,000.  

[klhmdg]

No “limit” ALL sales are income.

AT $600 you will get a form BUT any sales even $10 are to be reported to the IRS.

You need to ask your accountant about your and your husband’s income taxes.

Your mother should set up her own account if you are selling for her. She will have to file on her income taxes.

she can pay you a fee to sell for her. You both should ask your accountant about this separate tax issue. She will get the income for all sales and would have to pay you whatever you agree on. Could be a real convoluted mess…

[dakydez09]

im asking as getting a 1099

[alcoforever]

Each account that goes over $600 will get a 1099.

[nobody*s_perfect]

eBay will send a 1099-K to any individual whose gross sale total is over $600. So if you and your husband each go over that amount you will each get a 1099-K from eBay. It's connected to the Social Security number that is attached to your account.

If you set up a separate account for your mom, and use her bank account and SSN for that account, then that will have no effect on your eBay accounts and on your own 1099-K.  

eBay will see that the accounts are connected because they use the same computer, so if one is restricted or suspended they all will be affected.

[luckythewinner]

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@dakydez09 wrote:

My husband and I both sell using separate ebay and bank accounts but file taxes together at the end of the year…..Do we have a $600 limit per person or because we file together its $600 total for both combined?    

And Totally separate question… My mom gave me a bunch of her things to sell.  If I make an account for her can I sell and ship those items from my house or will that effect my account?

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The thresholds apply to the cumulative payments processed by a payment processor for a taxpayer ID. It does not matter whether those payments were made to a single account or many different accounts. 

So the answer depends upon whose SSN you gave to the eBay account. 

If the two eBay accounts have the same SSN, each account will receive a 1099-K if the combined total for the two accounts exceeds $600.

If the two eBay accounts have different SSNs, each account will receive a 1099-K if the total for that account exceeds $600. 

[winterpalace25]

You will each get a 1099 and should file 2 separate Schedule C forms with your joint tax filing.

[winterpalace25]

And you should file the 2 schedule Cs with all of your earnings.  The 1099 makes no difference.

[pburn]

@dakydez09 

Keep in mind sales applying to the $600 threshold for issuance of a 1099-K began January 1, 2022; in other words, you will not receive a 1099-K for sales you made in 2021 unless sales reached the $20,000 and 200 transaction threshold during 2021. (Those would be the taxes you're preparing now for filing in April.)

This year's sales of $600+ will be reported via 1099-K in early 2023 for reporting on your 2022 income tax.

Just wanted to make sure that was understood.

[7606dennis]

I would advise consulting your tax professional.

[mr_lincoln]

@dakydez09   You can have more than one account in YOUR name so you can open a 2nd one to sell your mom's stuff.    1099Ks are issued to anyone with an SSN so you and your husband would both receive separate 1099Ks so each would have the $ 600 threshold.

[stayhomemom2012]

The limit is $600 per seller.  I don't think you have to pay taxes on anything lower than that unless you claim it.

[jameshen1]

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@stayhomemom2012 wrote:

The limit is $600 per seller.  I don't think you have to pay taxes on anything lower than that unless you claim it.

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The limit is $600 per seller.  Correct.  the rest of your statement is incorrect, however.

[kh-stanley1]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread HERE if you wish to continue to discuss this topic.

Thank you for understanding.