Form 1099-K
ElvisP
Posts: 1,066 ✭✭✭
Got an email from ebay this afternoon. It starts out "If you had at least $20,000 in ebay sales and 200 transactions you will be receiveing a 1099-K form from Paypal. I assume since I got this email I will get this form even though it says "IF". I know I am close. Did anyone get this email and you know you are not at the $20k/200 level? Thanks in advance.
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the 20,000 number includes the sales tax paid by your buyers, so if your close to 20,000, the sales tax will probably put you over. I am guessing everyone got one of these e mails, since it has to explain to take the sales tax off your gross income when doing your taxes, this is something new this year. If you think your close, you should of stopped selling. the 1099 requires a level 5 tax return specialist and a extra form, so your taxes will cost more to prepare and it's a headache to do the paper work
Great, yep I'm prolly over especially since any shipping cost that buyers pay is included as sales also. I did stop selling back the first of October and thought I was safe but didn't realize at the time that taxes and shipping was included in the $20k limit. The good news is I've bought a lot this year so maybe it won't be so bad, lol.
One thing to be careful of is some states have new laws about receiving online payments. In Massachusetts, they snuck a law in a couple of years back that is if you receive $600 in online payments, you will get a 1099. I know some other states have also changed to this.
I got the e-mail and I'm not even close to the 20K threshold. I'm sure I hit the 200 transactions, just not the 20K.
Thanks, I stopped about $1,500 short and thought I would be ok. Adding shipping and taxes is prolly going to put me over. Good to know that people well under are getting the email too. If I do get it I will have a lot of purchases, fees, supplies etc to deduct so hoping the actual taxable part won't be much. Time to say a little prayer. Thanks all.
I got the email. I'm at about $19,500 for the year, and my state (CA), didn't collect sales tax until October, and I've sold very few since then, so I might be okay. I also offer free shipping.
I hate that there is no exact answer or place to find the number. It should be simple to find. The taxes part really threw me off. Ebay should have this number available.
i went to Seller Dashboard....."DON'T". Does not show shipping or taxes. If you go to Archived then the numbers will be closer to accurate; but not correct. I went to PP and added each transaction one by one for a given month and the number was different than the Archived. I called EBAY and they were no help at all. I believe Archived rolls up everything, even if the buyer had a tax cert. If Ebay sends these numbers to PP....they are flawed for sure. If Ebay says $500 for November and PP only collected $460 then what is correct? Just an example.
I am an accountant so will answer from that perspective. Nothing but a notification to IRS. If your doing business from home and not LLC or Corp you review your activities and decide what to report on your taxes. I normally can get mine to show loss. Use the long form tax. I prefer Turbo tax. Write offs for space in home office postage utilities phone auto insurance association educational trips to post office etc all deducts. Inventory purchased are not included especially if your buying for a part of your portfolio aka retirement. Use acceleration on any cell phones tablets computers and all else. Amount in tax return does not necessarily have to equal the amount on that form if you get it. Many may include duplicate info if some is earned for services. If you need help at tax time DM me and I can help if you need it.
Kathy
Best place to buy !
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Damn, didnt know this. If it becomes a law in my State, I am done selling on Ebay. Not worth it.
Terry Bradshaw was AMAZING!!
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I'm still trying to figure out how ebay could be allowed to include sale of a private vehicle on ebay motors (for a loss due to depreciation over time) towards the 1099 accumulation figure? Selling the vehicle would be capital loss anyway.
Hello, we're Ebay, come sell with us. Stick that hand in here, and let us shake it.
That's not the way 1099s work. They just reflect gross revenue. eBay has no idea how much you paid for the priate vehicle, or 1952 Mantle for that matter.
Agreed; however, for some reason I was under the understanding that listings under ebay motors were treated separately.