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eBay 1099-K
ElvisP
Posts: 1,052 ✭✭✭
I believe I should have received one but have not. I have logged into my account and went to taxes and it says no 1099-K is available for the tax year 2021. Still got a few days but I suspect most of you already have one?
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I didn't think it started until 2022
IMF
I actually just received an email from PayPal yesterday saying the form was ready in my account. I haven’t gone to look yet though…
I think the new $600 limit starts this year. I am an individual not a business so maybe its not a 1099-k. Is the form different for individuals vs. business?
eBay has not generated them yet
The OP might have gone over the $20k plus 200 transactions, or there are even some states where the threshold was already $600.
PayPal just released them today.
MA and VT for sure have had the $600 threshold for a long time
Just an FYI. I had to resell some concert tickets at Ticketmaster and the total was just over $700 and I had to give them all my info so they could send me a 1099 at the end of the year. Wasn’t expecting that but not surprised either, That same money will be taxed 4 times at least.
yup.
How much profit did you make on the tickets? Net of Ticketmaster fees, I mean.
About $140
Nice profit on $700 tickets, but we're talking what, $30 in taxes?
I live in Virginia, and just received the 1099-K from PayPal, wasn’t expecting to get one since I only had 35 transactions, adding up to around $9K on EBay. I guess Virginia is one of the states that already required anything over $600 to trigger the 1099-K, I wasn’t aware, but it’s fine, I’ll pay whatever I owe, but I was wondering if anyone had any tips on how and if I can claim how much each item cost without having actual receipts. All the items that I sold were all sports cards that I’ve collected mostly 25 years or more ago and I have no paper trail on what each item costs. I bought most of my higher items at card shows, but just paid cash. I know one item I sold was a 1992 Topps Stadium Club Members Only Basketball unopened set, limited to 12,000. I actually found what those sold for when I order the set. That’s basically the only item I am comfortably say what my purchase price was. The other items I have absolutely no way to prove what I paid. This is the 1st year I’ve ever had a 1099-K.
I believe you will be paying the full amount of capital gains on your sales.
Successful Trades: Swampboy,
Yes its ok, was just pointing out how things that used to go without getting taxed and now it looks like everything you do is going to be taxed. Again those same tickets/money will be taxed at least 4 times.
Could he not claim a reasonable estimate of what he spent during the year?
Yes, but each dollar will be taxed only once. That is, you and all previous owners including the arena will only be taxed on $700, even if the $700 is broken up among at least four people.
Please, ask your tax professional, not some guys on the Internet. The amount at stake is likely high enough that it's worth hiring one.
Capital Gains is the difference between the cost of the item when acquired and the price it is sold for, minus expenses of the sale.
If audited you would need to show receipts for proof of cost.
Successful Trades: Swampboy,
The IRS doesn't expect you to have receipts for CDs, DVDs and anything else you bought 20 years ago. And the odds of the IRS auditing someone who makes less than 25k selling on eBay are slim and none.
In this instance, the money isn't getting taxed at all... the transaction is getting taxed, the money just determines how much tax is owed. If those tickets were resold 100 times... you're going to have 99 sellers that have to pay income taxes on them, and (probably) 99 buyers that had to pay sales tax.
I agree with MisterTim1962 100 percent. Some years ago, a friend of mine got the 1099-K form from paypal for $33,000, then the next year a similar 1099-K for $27,000. He ignored them both and was audited. I doubt if you receive one for 1099-K for say $3000 or less, I can't imagine the IRS will audit you.
Only if the tickets went up in value each time. If I buy a ticket for $500, and maybe pay 6% sales tax so $530 and sell the ticket for $600 net of fees, I only have income tax due on $70. (Capital gains, possibly). If I sell for $500, net of fees, then I owe no taxes and may even be able to offset the $30 extra I paid against other tickets I've sold or other income. The only one paying significant income tax is Ticketmaster for the 100 sets of fees.
Also, note that no taxes are owed this year that weren't owed last year, it is just more difficult to cheat, as others have mentioned both here and on the coin side.
As always, don't listen to me: talk to your tax professional.
back before the new rules you the worst thing you could do is ignore the 1099. I can't comment now with the massive increase in 1099s that will seen.
I was audited for a 1099 that was never sent to me for 3K of rentals on our vacation house about 10 years ago where the agent never sent us the 1099 but sent it to the irs. I had to resubmit my 1040 with the offsetting expenses or I would have had to pay on the whole thing.
I am wondering how "official" a receipt has to be. at card shows, for instance, would handwritten on notebook paper and signed be sufficient? does it need to be an actual printed receipt?
George Brett, Roger Clemens and Tommy Brady.
So is it PayPal issuing the 1099’s but not eBay or both? Does eBay offer any other payment options?
Sellers have to use eBay managed payments, which stinks. They take out their fees immediately and eventually send what is left over to your bank account. I used to have my money immediately when Paypal handled it. Now it can take up to five days to get paid. You can use the money right away to pay for your shipping (if you print shipping through eBay), which is a good idea.
both , they are separate entities. if you sold and got paid through paypal and met the threshold you will get one there and same for ebay. if you sold a little on each , you may not get anything
That's what makes it so difficult to do your taxes when you sell on eBay. I'm sure I pay too much because I don't have receipts for many of the items I have bought over the years.
I doubt if they would accept a handwritten note on a piece of paper, unless it was on business stationary from one of the larger card dealers, such as Dean's Cards or Greg Morris Cards. They would probably laugh in your face if you gave them a handwritten receipt from "Mister Tim's Card Shop"!
So, my eBay 1099 will show the amount item sold amount plus shipping (with eBay fees already taken off)? So I will need receipts for the original purchase and then any shipping $ from when I sold it. Is that correct? Just making sure I am keeping the right things.
Nic
Guides Authored - Graded Card Scanning Guide PDF | History of the PSA Label PDF
Got both of my 1099-K. Paypal from Jan. - March, --------> then Ebay from April - Dec. after they took over to their managed payment. I am brand new to this. Says I made 70K combined from both. I kept all my CC statement for the year which shows all my purchasing of products on ebay (to later resell). I use one CC for all this stuff. Is this a good form of receipt? Are all card submissions, shipping (I offer free shipping), materials (bubble mailers, boxes) a write off?
FYI, ebay's 1099-K PDF just showed up under taxes on my seller's hub within the past hour. Today is their deadline to post.
Similar for me re: sales, but a lot of my sales are from inventory purchased many years ago when selling was not in my sights. The last few years I have been grading and selling my inventory. The first 1099 received from Paypal was 2017. How do you provide purchase info from years ago when you were a 'collector'?
Thanks,
David (LD_Ferg)
1985 Topps Football (starting in psa 8) - #9 - started 05/21/06
All excellent questions for your tax professional.
Seriously, are you going to run the risk of paying many thousands more than you owe on one hand or being audited and assessed a large penalty because of what some clown on an Internet message board tells you, even if the clown may be acting maliciously?
Did you get a red notification in the bell icon with ebay ?
So we should pay a CPA thousands to prevent paying thousands to the IRS? Got it!
Never got the red bell icon. Kept checking the tax link the past 5 days. Was planning to make a call if I didn't get it by the 1st.
@MisterTim1962 said:
Not sure what CPAs you're talking about, but my tax guy only charges $120 for my wife and I together and he can handle this for me. I'd pay twice that for the continued peace of mind and someone who prepares any off-season IRS paperwork if/when I get any.
I would never put my money or my freedom in anyone hands. Paying someone to do your taxes doesn't get you off the hook if there's a problem. Read the fine print in the agreement that you signed. Bottom line, either you can prove what you paid for items or you can't. If you have no proof, the IRS will require you to pay taxes on 100% of your eBay income.
Dumb question...if eBay collected sales taxes, they just pay it and you have no obligations on that, yes? I was under the threshold for reporting in 2021 but I know they charged the buyers taxes. Just want to make sure I'm clear.
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Yes, you never receive the sales tax. EBay takes it out and pays it to your state. Any sales tax paid by your buyers doesn't count towards your threshold number.
See "some clown on the Internet" above.
Right back at you, dude. If you're not bright enough to do your own taxes, by all means hire someone to do it for you.
I sell a lot on Amazon and received a 1099 from them with sales tax in the revenue total and the tax broken down separately on "page 2" of the 1099. Quite odd but it looks like they were having me treat it as part of my cost of goods sold.
I am unaware of how Ebay handles their 1099 as I was lucky enough to miss out for the past year.
Can anyone with an actual 1099 from Ebay confirm?
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It's not about being bright enough... some people have more "financial plates spinning" than others. It's well worth it to hand my stuff to a dude and it's done for me for a small fee. Why the judgement?
No judgement. Sorry if it came across that way. Some pople are good at math and others hate dealing with numbers. I just don't trust anyone to keep me out of jail. Freedom means everything to me.
Hey, I embrace my remark. In the rare event that I offer an opinion re taxes I make sure to tell people not to take my word for it. I value your freedom enough that I don't want to assist in your jeopardizing it.
Good point. Now I see where you're coming from! Thanks.
I got this message from eBay stating I got an Incorrect 1099-K form. Weird.
“A recent technical issue resulted in a 1099-K form being incorrectly provided to you. Please disregard the incorrect 1099-K form. The incorrect 1099-K form was not sent to the IRS or California Franchise Tax Board.
We’re working to resolve the issue and ensure that it will not happen again. Unless you had more than $20,000 in gross sales and 200 transactions in 2021, we will not submit a 1099-K form to the IRS or the California Franchise Tax Board.
We sincerely apologize for the error and any inconvenience this may have caused.
As always, thanks for selling on eBay, and for being part of the eBay community.
The eBay Selling Team”
great message from ebay. Who wants wager that they in fact did send it to the government agencies? Here is your 1099… oops just kidding.