Ebay tax reporting drops from $20,000 to $600

[BobC]

Originally Posted by CTDean

All eBay sales will show up on your 1099K's. I'm in Maryland and it is one of the states that use the $600 figure this year. I just printed my Paypal 1099K for January thru June 2021. In June I went to eBay managed payments and will be getting an eBay 1099K for June thru December 2021 sales. The 1099K's will include all eBay sales for the year no matter the payment method used by the buyer through paypal or eBay's managed payments. Here the $600 in a year is the only factor, the number of sales has no meaning.

Sorry for any misunderstanding, I believe Ebay's managed payment plan/system is considered somewhat on par with other payment platforms like Paypall, Zelle, etc. And therefore they'll report on all sales through that platform. I do not sell on Ebay and only know they are in the middle of eventually getting all Ebay sellers to adopt and be on their managed payment program. My understanding was that not all Ebay sellers had been forced to switch yet, and for those that hadn't, Paypal was still the primary payment venue/option being used, and that only payments through Paypal would be included in their 1099-K reporting (not including F&F payments).

This just highlights how confusing and complicated, as well as how inaccurate this reporting may be. As you mentioned, your 1099-K only included all Ebay sales starting in June through the year end, after you had switched to Ebay's managed payment system. Before that switch though, I'm assuming that any payments you had received that did not come through Paypal, are not showing up on a 1099-K.

And this also points out how tax laws and reporting can vary greatly by state.