2021 Ebay 1099K now appearing on line
derryb
Posts: 37,206 ✭✭✭✭✭
Of note:
- May not cover the full year. My 1099 does not show monthly income till March, yet I had earlier year sales - these may show up on a PayPal 1099K. Remember, for most sellers ebay managed payments began a few months into the year and until then Paypal processed most payments.
- Total Income shown includes gross amounts without any adjustments or expenses. Deduct these on your IRS Schedule C.
- Total Income shown DOES NOT include state taxes processed and paid by ebay - do not deduct these on your Schedule C.
- 1099 Can be accessed through your Seller Hub by selecting "taxes" on the left of the page.
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Comments
I'm assuming, for 2021, that only those who met the higher threshold of sales (???) are getting a 1099?
I sold a few items on eBay in 2021 but I don't have a 1099 attached to my account.
For 2022, and going forward, those who make sales in excess of $600 will also get a future 1099?
BST references available on request
@HoneyMarket said:
And a whole lot of ebayers are going to get a request from Ebay for a social security number/tax number. Instead of understanding that ebay is their "bank," they are going to freak out.
thanks for the posting
I received a 1099 from eBay, even though I didn't meet the threshold for gross sale nor items sold.
thanks for the reminder i needed to d/l my pp statement from last year.
Did you hit your states threshold?
Nothing here.
"It's like God, Family, Country, except Sticker, Plastic, Coin."
I didn’t get one
I still haven't received one... either online in my ebay account.... or by US Mail. And I met the threshold.
What's the "old" (2021) threshold - for those who don't know!
BST references available on request
read the link in the OP
I got mine yesterday online and it only included receipts for April through December. Coincidently I opened my eBay Store in April. Why does it not show January through March Sales? I also checked the December number on the 1099 and it didn't match my spreadsheet number for sales plus shipping that I received.
I will try to reconcile other moths this week and try to figure out what they report and when.
it's crackers to slip a rozzer the dropsy in snide
Probably because they didn't handle the money. Check with PayPal.
Good point. I think I signed up for managed payments in April also.
it's crackers to slip a rozzer the dropsy in snide
BST references available on request
For the majority of people selling on eBay…
A Schedule C is Not the way to go…
Please keep in mind that some states had lower thresholds, however.
As per a forum discussion on ebay... sounds like some of the 1099K forms provided by ebay may have some numbers that seem to be off... per some of the sellers.
They may be misinterpreting. The 1099 is supposed to be covering payment processing.
I’m curious myself about the Schedule C route vs what I understand to be the alternative— a Schedule D reporting gains and losses (with the latter not always allowed). The sch C will usually result in a self-employment tax liability that is not incurred when reporting collectible capital gains on a sched D.
It depends how aggressive you are. You can deduct much more stuff if you use schedule C i.e., PCGS Membership, ANA Membership, a portion of your home used as an office/shipping area, driving to auctions, driving to coin shows, a portion of your broadband fees.
The schedule C is much simpler than Schedule D as all of the transactions for the year can be lumped together as opposed to listing each one individually.
Is the 1099 amount less the eBay fees? Meaning, I can't detect the transaction fees, Right?
I know the eBay store fees will still need to be deducted.
Nightmare tax filing / figuring out year for so many.
You don't have to reconcile/match what the PP 1099 says when you report your sales. You may have other venues where you sell. What is important is that the total of sales income that you do report is at least equal to the sum of all your 1099s or exceeds that total. IRS wants to confirm that you reported to them at least what their copies of those 1099s reported to them.
And if you are suggesting the Schedule D be aware of this: I went the D route in 2019 and the sales I reported match what the PP 1099 said. However the IRS sent me a tax bill for $18K on that PP reported income. I responded that it was included in the Schedule D filing and that I have already paid taxes on it. Appears to be a problem with them accepting the fact that PP can be a payment processor when it comes to selling investments. Still fighting with them. I have since gone to a Schedule C that is much easier and allows me to claim more selling expenses.
per the Ebay link in the OP:
"Total Income shown includes gross amounts without any adjustments or expenses." Deduct these on your IRS Schedule C.
"Total Income shown DOES NOT include state taxes processed and paid by ebay." Do not deduct these on your Schedule C.
so where's the magic link that shows all the eBay fees paid for a calendar year?
You need to add them up from your monthly invoices.
If you are cleverer than I am you can generate reports to collect them for you.
Click on sales above where your monthly day to day sales graph are in seller hub. You can choose all of 2021.
I thought they had to be mailed out by Feb 1'st.
I don't have the email address I used to use.
Awesome and thank you, you saved me a ton of time.
next question ...
so where's the magic link that shows all the shipping fees paid through eBay for a calendar year?
edit, wow I found that info in the same report, thanks again.
I have not received a report from ebay.
I thought they mailed them out by Feb 1st.
I never heard of anybody getting a 1099 by email and did not get one.
What about PayPal ? I keep getting you have no tax documents “yet”. I did two eBay sales last year for $700. I expected a 1099k because it’s over $600 but I just read Illinois is $1000 so I don’t know what’s up.
Different States have different rules, exclusions etc. for collectables, The IRS wants to tax at 28% Long Term capital gains. So you need to have a receipt? Wow. Thats going to create huge headache for the IRS agent. I think they should just accept reality and not tax collectables, EXCEPT Bitcoin. I think Bitcoins bought and sold on exchanges (often for money laundering) should be monitored and taxed as a SECURITY., But coins, and heirlooms should be exempt IMHO.
I'm assuming the IRS doesnt have enough time to go around estimating taxes on junior's penny collection, even if its worth more than $600.
Inherited assets receive a new cost basis at the time they are inherited. The new basis is the market value of the asset at time of inheritance. This basis (cost) is used regardless of how you claim the income on your tax return.
This potentially lower profit is the reason many nearing death will leave the asset to the heir rather than sell it, pay capital gains tax base on the older, lower basis and then leave the cash to the heir. For assets that have gone up in value best to let the heir sell them at the new hopefully higher basis/lower profit. Most assets that are sold shortly after inheritance will see little to no capital gains tax because they sold for near the market value that was used to establish their basis.
My philosophy on 1099's is this: I don't know who will send me one (and to the IRS) and I don't know when they will arrive. I will wait till close to tax filing deadline to allow them all to have ample time to make it to my mailbox. Filing early may create the need to later amend.
It shouldn't change anything. Report everything.
No, but if my total is less than the 1099's show then I have a problem that I need to resolve before I file the return. It might be my records or the 1099 issuer's records that need to be corrected BEFORE the return is filed.
so where's the magic link that shows the total of all the eBay purchases for a calendar year?
Actually, you don't need a 1099 if you are claiming all your income. I never worry about them.
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1. Inherited coins go at fair market value at time of inheritance (NOT time of death).
2. Gifted coins go at cost basis of the giftor.
3. There Are Exceptions to Rule 1 and 2.
I have no idea why I sold last year or how much the coins cost me.
Your going to be a fan of managed payments yet...
They need zero agents. They simply assume a cost basis of zero and collect taxes on the full sale value. The computer does this automatically for them by simply adding any missing 1099 information to your filing against a zero cost basis.
No effing way.
Way more paperwork and time adding up numbers and looking for forms. A royal pain in the butt.
Plus, the way eBay forced everyone by taking everyone hostage to move to MP.
I do not like being held hostage.
That is how we ended up with PayPal, if you recall. It wasn't a choice, it was a mandate.
Not to get political BUT...
BST references available on request
just all of you wait for election time.......
there will be a ton of "cookies".....
Do you not know who you sold coins to/through? This strikes me as very odd. I know Etsy, for example, won't be sending me any kind of 1099.