theshhold...how many transactions and how many $$$ before worrying about taxes on ebay sales

[golfbasilthecat]

how many sales can you do without having to worry about ebay tax stuff...is it 300 transactions a year

or also is it a maximum of $10,000 in sales. I do not want to get into any tax stuff. This is only a hobby for me...not a business

[redmodelt]

I would say that $10,000 if per year is well past hobby! Starting 2022 it will be $600 before getting 1099.

[farmalljr]

If you sell something for ONE dollar, you may be required to report it. 

The thing everyone is fretting about, is merely the TRIGGER to be issued a 1099. That will change in 2022 from current form.

If you make a dollar on a sale, you are actually required to report it on your taxes, both state and federal forms. 

[fashunu4eeuh]

Here is an article about eBay selling and income tax liability you might find helpful.

https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-tax-filing-factsheet-for-ebay-sellers/L...

[lonebuck-books]

All income is considered taxable by the IRS.  It was 200 transactions and $20K triggered a 1099K but that is changing to $600 and no transaction minimum.  Regardless if you get a 1099K or not, you are supposed to be reporting and paying taxes on your income.  The IRS doesn't care if it is a hobby or business to you.  If you make a profit, they want their 'taste'.

[stainlessenginecovers]

The IRS does NOT recognize 'hobbies'. If you are making a profit it is NOT a hobby; it is a business and if you are earning income and hiding it by not reporting it on your end-of-year tax returns, you are performing 'tax evasion'.  This can be found out by either the Feds or the State. 

Before this year, a 1099 was sent to the IRS and copy to you for $20,000 or 200 transactions. Since Covid 19 and all the 'federal hand outs' they changed that to $600. If you sell more than $600, including shipping, a 1099 will be issued for 2021. 

[7606dennis]

Actually, under the current federal income tax laws any and all income is required to be included on your tax return.  I would recommend consulting a tax professional for advice.

[mr_lincoln]

@golfbasilthecat   Our state has a $ 500 minimum threshold for reporting proceeds from Yard-Garage-Porch sales before it has to be reported as income (but of course the state can not police that). 

You will only receive a 1099K from eBay if you reach 200 transactions and 20K in gross sales in January 2022. Starting Jan 1st 2022 is when the threshold is lowered to gross sales of $600 and eliminates transactions.

[fashunu4eeuh]

The above article, though current, does not give the new figures for the reporting threshold. Now starting in 2022, internet sales over $600 will be reported to the IRS, sellers will receive a 1099.

[fab_finds4u]

Selling as a hobby is selling things related to your hobby.  I.E you sew as a hobby and make several prom dresses for your daughter's friends. Under a certain amount you don't report. Offering them for sale to the general public would be a business and not a hobby.

Cleaning out the closet and selling some used clothes in a yard sale you wouldn't report.

Selling in a marketplace like eBay is a business.

[sin-n-dex]

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@golfbasilthecat wrote:

how many sales can you do without having to worry about ebay tax stuff...is it 300 transactions a year

or also is it a maximum of $10,000 in sales. I do not want to get into any tax stuff. This is only a hobby for me...not a business

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Selling stuff and receiving cash is not a hobby, it's a business. You're required to report your income whether or not you receive a tax slip.

C.

[sin-n-dex]

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@stainlessenginecovers wrote:

The IRS does NOT recognize 'hobbies'. If you are making a profit it is NOT a hobby; it is a business and if you are earning income and hiding it by not reporting it on your end-of-year tax returns, you are performing 'tax evasion'.  This can be found out by either the Feds or the State. 

Before this year, a 1099 was sent to the IRS and copy to you for $20,000 or 200 transactions. Since Covid 19 and all the 'federal hand outs' they changed that to $600. If you sell more than $600, including shipping, a 1099 will be issued for 2021. 

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I for one am glad they lowered the threshold (although I live in Canada) and I wish in Canada we would do the same.

In Canada there's a threshold for having to collect Harmonized or Federal Sales Tax (which makes sense so start up businesses aren't hit with tax collection right off the bat).

Income from selling is to be reported in Canada. If you're on unemployment insurance they calculate your revenue when computing your deduction, if you are on disability from work they will cancel your benefits if you are doing work selling stuff on the side, and if you are on welfare they dock you dollar per dollar on everything you receive. They don't want to get into the nitty gritty of expense deductions.

I've been filing business tax returns since I purchased my first business license in 2005, and it annoys me that some people don't think they should pay their fair share.

C.

[collectfest]

well, there is no need to worry about taxes, you just need to pay them. It is a business if you sell items. I does not matter if you feel it is a hobby. You sell, you'll pay taxes. eBay, if applicable, collects sales tax on every transaction you sell. Not sure why eBay sellers are confused about this.

Good luck to you.

[slippinjimmy]

You sell, you'll pay taxes.

If you have a good tax accountant paying income tax is not always necessary!

There is a major difference between reporting revenue and reporting revenue that triggers a tax bill.

[luckythewinner]

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@golfbasilthecat wrote:

how many sales can you do without having to worry about ebay tax stuff...is it 300 transactions a year

or also is it a maximum of $10,000 in sales. I do not want to get into any tax stuff. This is only a hobby for me...not a business

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Reportable income is reportable income. Period. There is no minimum number of transactions or dollar amount.