Need Confirmation

ElvisP · September 30, 2020 12:15PM

The end of the year will be here before we know it. Again the question of what is counted toward the $20,000 maximum sales before you get a 1099. Do they count what the item(s) sold for or do they include taxes and or shipping? From my experience last year it is just what the item(s) sold for and does not include taxes and/or shipping but am not 100% sure. Would appreciate if anyone knows for sure. TIA

Goldenage · September 30, 2020 1:17PM

Suggest you contact a Priest. (Lol, you’ll get it if raised Catholic).

Mickey71 · September 30, 2020 1:33PM

@ElvisP said:
The end of the year will be here before we know it. Again the question of what is counted toward the $20,000 maximum sales before you get a 1099. Do they count what the item(s) sold for or do they include taxes and or shipping? From my experience last year it is just what the item(s) sold for and does not include taxes and/or shipping but am not 100% sure. Would appreciate if anyone knows for sure. TIA

Elvis,

They use the word "gross" from what I've viewed numerous times. They add up everything....price, tax and shipping from what I have seen in numerous spots. Very hard info to track down as some things say different things. I would not take a CS answer on this either as they can be unreliable and do not know. Take care and say hi to Priscilla for me. LOL.

FootballHOFCollector · September 30, 2020 1:52PM

The threshold for the 1099 is $20,000 in sales and 200 or more transactions. Both criteria have to be met.

ElvisP · September 30, 2020 4:45PM

@FootballHOFCollector said:
The threshold for the 1099 is $20,000 in sales and 200 or more transactions. Both criteria have to be met.

But what makes up the $20k? The final sale price or are taxes and shipping included?

tonylags · September 30, 2020 4:58PM

@ElvisP said:

@FootballHOFCollector said:
The threshold for the 1099 is $20,000 in sales and 200 or more transactions. Both criteria have to be met.

But what makes up the $20k? The final sale price or are taxes and shipping included?

gross $ volume, including taxes & shipping {fyi, I had called them to confirm when they started collecting sales tax}; same thing will apply to ebay MP, {20k & 200} if you sell there too.

ElvisP · September 30, 2020 10:28PM

@Mickey71 said:

@ElvisP said:
The end of the year will be here before we know it. Again the question of what is counted toward the $20,000 maximum sales before you get a 1099. Do they count what the item(s) sold for or do they include taxes and or shipping? From my experience last year it is just what the item(s) sold for and does not include taxes and/or shipping but am not 100% sure. Would appreciate if anyone knows for sure. TIA

Elvis,

They use the word "gross" from what I've viewed numerous times. They add up everything....price, tax and shipping from what I have seen in numerous spots. Very hard info to track down as some things say different things. I would not take a CS answer on this either as they can be unreliable and do not know. Take care and say hi to Priscilla for me. LOL.

Will tell Pris you said hi! 😁

ElvisP · September 30, 2020 10:31PM

@tonylags said:

@ElvisP said:

@FootballHOFCollector said:
The threshold for the 1099 is $20,000 in sales and 200 or more transactions. Both criteria have to be met.

But what makes up the $20k? The final sale price or are taxes and shipping included?

gross $ volume, including taxes & shipping {fyi, I had called them to confirm when they started collecting sales tax}; same thing will apply to ebay MP, {20k & 200} if you sell there too.

So if you went into managed payments during the year, as I did in September do you get an additional $20k even though it’s the same account?

tonylags · October 1, 2020 3:43AM

@ElvisP said:

@tonylags said:

@ElvisP said:

@FootballHOFCollector said:
The threshold for the 1099 is $20,000 in sales and 200 or more transactions. Both criteria have to be met.

But what makes up the $20k? The final sale price or are taxes and shipping included?

gross $ volume, including taxes & shipping {fyi, I had called them to confirm when they started collecting sales tax}; same thing will apply to ebay MP, {20k & 200} if you sell there too.

So if you went into managed payments during the year, as I did in September do you get an additional $20k even though it’s the same account?

yes, both providers will issue 1099k if you exceed their thresholds {20k & 200}

Mickey71 · October 1, 2020 7:21AM

?????> @tonylags said:

@ElvisP said:

@tonylags said:

@ElvisP said:

@FootballHOFCollector said:
The threshold for the 1099 is $20,000 in sales and 200 or more transactions. Both criteria have to be met.

But what makes up the $20k? The final sale price or are taxes and shipping included?

gross $ volume, including taxes & shipping {fyi, I had called them to confirm when they started collecting sales tax}; same thing will apply to ebay MP, {20k & 200} if you sell there too.

So if you went into managed payments during the year, as I did in September do you get an additional $20k even though it’s the same account?

yes, both providers will issue 1099k if you exceed their thresholds {20k & 200}

Can the 1099s look like this:

PP $15,000
MP $9,000

?????

Mitchandrsn · October 1, 2020 7:39AM

@Mickey71 said:

?????> @tonylags said:

@ElvisP said:

@tonylags said:

@ElvisP said:

@FootballHOFCollector said:
The threshold for the 1099 is $20,000 in sales and 200 or more transactions. Both criteria have to be met.

But what makes up the $20k? The final sale price or are taxes and shipping included?

gross $ volume, including taxes & shipping {fyi, I had called them to confirm when they started collecting sales tax}; same thing will apply to ebay MP, {20k & 200} if you sell there too.

So if you went into managed payments during the year, as I did in September do you get an additional $20k even though it’s the same account?

yes, both providers will issue 1099k if you exceed their thresholds {20k & 200}

Can the 1099s look like this:

PP $15,000
MP $9,000

?????

My guess is since PP and MP (eBay) are distinct entities, neither would be aware of the combination triggering the $20K threshold - so no. However it it were two diff eBay accounts on MP (with same Tax ID) it could look like that (ie Account 1 $15K & Account 2 $9K) under the assumption that two combined also exceed 200 transaction threshold as well.

ElvisP · October 1, 2020 8:40AM

Thanks everyone for help, much appreciated. Mickey71- so you are saying that even though eBay for example shows $25k in sales and say $18k went thru PP and $7k went thru MP, you would not get a 1099 from either because neither reached the $20k limit? TIA

Mickey71 · October 1, 2020 9:12AM

@ElvisP said:
Thanks everyone for help, much appreciated. Mickey71- so you are saying that even though eBay for example shows $25k in sales and say $18k went thru PP and $7k went thru MP, you would not get a 1099 from either because neither reached the $20k limit? TIA

Elvis,

I'm saying I don't know and have not figured out where to find this information exactly. "My guess" is on the bay that if you sold $25,000 with 18 through PP and $7K through MP you are going to get a 1099. Very important info; but it is not readily available.

ElvisP · October 1, 2020 10:32AM

Thanks Mickey. It would be nice if there was a definitive answer somewhere. I would call customer service but I don’t think you could take their answer whatever it was as correct.

Mickey71 · October 1, 2020 10:40AM

@ElvisP said:
Thanks Mickey. It would be nice if there was a definitive answer somewhere. I would call customer service but I don’t think you could take their answer whatever it was as correct.

Exactly. They have been known to give very different answers to multiple callers.

daltex · October 1, 2020 2:31PM

It should go without saying, but regardless of 1099s you're liable for taxes on your profits. Similarly, if you live in a state that charges sales tax, you're likely liable to pay it regardless if the seller collects it or not.

Please consult your tax professional.

tonylags · October 1, 2020 2:40PM

I have been told by both specifically you need 20k & 200 to trigger a 1099k; as someone above said, since they are separate entities each one will send their own. And as I have said, this is fact, per them. Someone did mention multiple ebay accounts, it's not the ebay account that triggers the 1099; it's the SS# or Ein#, so with multiple accounts if you exceed the 20k & 200 you'll get one.

What no one at paypal could give me an exact answer was; is F&F included in paypal's. This year I have received several F&F payments by consigning and I am going to have look very closely and see if those amounts are added in.

From what I understand, if you itemize, you will be able to deduct the sales tax paid, but I need to confirm that with my accountant to be sure.

FWIW, I think it's all BS too.

ElvisP · October 1, 2020 6:47PM

I still don’t understand why shipping and taxes are counted as sales. So really as far as the sales threshold of $20k goes its really a good bit less, prolly at least 10%, so more like $18k.

lahmejoon · October 1, 2020 6:54PM

Gross = all revenue from the sale, so you have to include shipping and sales tax, eventhough it's an outflow after-the-fact.

ElvisP · October 4, 2020 11:39AM

Another question, lol. For those of you that get a 1099 what does it show? I assume total sales but does it show any deductions for shipping, taxes, eBay fees or is that up to the individual to deduct those? TIA

Need Confirmation

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