eBay Tax Statements

[robw1959]

Has anyone heard about the status of eBay's tax statements for sellers for 2024? Are they finally issuing them to those who have at least $600 in earnings for the year like they've been telling us for the last couple of years?

[Knightlax5]

I believe they changed it thios year to where if you have $5k in sales then you get a 1099

[bnorth]

Originally Posted by Knightlax5

I believe they changed it thios year to where if you have $5k in sales then you get a 1099

^^THIS^^ It is $5000 this year.

[judgebuck]

Yes, my understanding is that it is $5,000 this year and $600 next year.

Also, someone told me that the shipping costs are included in determining if the $5,000 threshold is met. Anyone know if this is the case?

[Michael B]

Originally Posted by judgebuck

Yes, my understanding is that it is $5,000 this year and $600 next year.

Also, someone told me that the shipping costs are included in determining if the $5,000 threshold is met. Anyone know if this is the case?

Even if they do it is fully deductible, Schedule C, I believe though may be mistaken on the form.

[bobbyw8469]

It's a logistical nightmare. Trust me.

[theshowandme]

Still getting them as always as a Virginia resident at the $600 threshold.

[robw1959]

Originally Posted by Knightlax5

I believe they changed it thios year to where if you have $5k in sales then you get a 1099

Thanks. Good to know that.

[bcbgcbrcb]

eBay does include shipping in their reported taxable income for the year just as they do in calculating their fees that they take out. Also taken out of their fees is the sales tax that the buyer pays when making a purchase even though the seller never even sniffs that money as eBay remits it straight to the state of record. Quite a racket that eBay has going and nobody has been able to stop it.

[sonnyu2]

eBay has a pretty detailed page explaining the 1099-K form - https://www.ebay.com/help/selling/fe...-1099k?id=4794

Shipping Charges are part of the total sale price so they will always be included in the total gross amount of income. A seller can deduct the actual amount they paid to ship items though when filing their taxes.

As always, consult a CPA if you are unsure how to reconcile your 1099-K and report it on your taxes.

[Keith H. Thompson]

the 1099-K forms will be sent electronically this year.

[Brian Van Horn]

Keep an eye on H.R. 190

https://atr.org/ways-and-means-passe...-paypal-users/

Passed by the House Ways and Means committee along party lines in September, but didn't come to a vote in the Senate. With Republicans having Congress and the Senate in 2025 the ceiling should go back to $20,000.

[perezfan]

Originally Posted by Brian Van Horn

Keep an eye on H.R. 190

https://atr.org/ways-and-means-passe...-paypal-users/

Passed by the House Ways and Means committee along party lines in September, but didn't come to a vote in the Senate. With Republicans having Congress and the Senate in 2025 the ceiling should go back to $20,000.

That's a huge relief (assuming it is indeed repealed).

[Knightlax5]

They may change it, but the earliest they can change it will be 2025 tax year. Although its more likely with a republican controlled congress could repeal it, I wouldn't bet on it. Both parties want more tax revenue.

[Brian Van Horn]

A further update on H.R. 190.

https://fastdemocracy.com/bill-searc...s/USB00070163/

[bnorth]

Originally Posted by Brian Van Horn

Keep an eye on H.R. 190

https://atr.org/ways-and-means-passe...-paypal-users/

Passed by the House Ways and Means committee along party lines in September, but didn't come to a vote in the Senate. With Republicans having Congress and the Senate in 2025 the ceiling should go back to $20,000.

If it does end up being $20K eBay will come back to life. Even if $5K is the new norm eBay will get a big boost as many will just go back to having multiple accounts using friends/family to open them.

[Brian Van Horn]

Friends and Family may not be an option on eBay.

[bnorth]

Originally Posted by Brian Van Horn

Friends and Family may not be an option on eBay.

I have run across several eBay sellers that do it to stay under eBays reporting numbers.

[Brian Van Horn]

Interesting. That said going back to $20,000 would bring a lot of inventory back to eBay.

[Mark17]

If people pay their taxes as they are required by law to do, it doesn't matter whether or not ebay reports sales. I've been selling on ebay since 1998, and reporting sales on my tax returns, and have had no problems. If I am ever audited, sales records are quite easy to produce.

Bottom line, pay your taxes and sleep well at night.

[Brian Van Horn]

Originally Posted by Mark17

If people pay their taxes as they are required by law to do, it doesn't matter whether or not ebay reports sales. I've been selling on ebay since 1998, and reporting sales on my tax returns, and have had no problems. If I am ever audited, sales records are quite easy to produce.

Bottom line, pay your taxes and sleep well at night.

In complete agreement.

[bobbyw8469]

Originally Posted by Mark17

If people pay their taxes as they are required by law to do, it doesn't matter whether or not ebay reports sales. I've been selling on ebay since 1998, and reporting sales on my tax returns, and have had no problems. If I am ever audited, sales records are quite easy to produce.

Bottom line, pay your taxes and sleep well at night.

I produced sales records and I still got audited. It has been a nightmare. I have zero idea why I was singled out.

[OhioLawyerF5]

Originally Posted by Mark17

If people pay their taxes as they are required by law to do, it doesn't matter whether or not ebay reports sales. I've been selling on ebay since 1998, and reporting sales on my tax returns, and have had no problems. If I am ever audited, sales records are quite easy to produce.

Bottom line, pay your taxes and sleep well at night.

It appears some people think that if they don't get a 1099, they don't have to pay taxes on that income. They are wrong, of course, and will not have a fun time if audited. But they think it anyway.

[notfast]

Originally Posted by bnorth

I have run across several eBay sellers that do it to stay under eBays reporting numbers.

How is this even possible?

[bnorth]

Originally Posted by notfast

How is this even possible?

I have collected silly rare stuff for a very long time. So I notice stuff when listed on different accounts. I will give an example. I was watching a bat. It was ended(BIN) and was then relisted but by a different seller. It was originally listed by a seller in New York. It was relisted by someone in Arizona. So I messaged the original seller to warn them someone else had listed their bat for sale and I was interested in it. They said it was still their bat and just one of their kids accounts they use. I have seen this many many times over the years.

[raulus]

Originally Posted by bobbyw8469

I produced sales records and I still got audited. It has been a nightmare. I have zero idea why I was singled out.

Typically you get picked either because an algorithm flags your return based on something abnormal in your return (like claiming deductions or credits that are really gigantic), or because you just get lucky by being randomly selected. Without knowing everything in your return, it’s hard to tell which element came into play for you.

And yes, they are almost always good fun. Hopefully you are able to get it resolved without too much financial pain.