Big news: One-year reprieve on 1099 reporting for ebay etc.

[BobC]

Originally Posted by JustinD

Nothing like taxing people on things that should not be.

I used Venmo, ppff, and cashapp every holiday season to collect donations at work to "adopt" several children as a secret Santa. These donations can total several thousand and myself and a few others would do shopping for each child, wrap and deliver new clothing, winter clothes, and of course toys to these homes. I never made a penny on this and in fact usually lost hundreds, but did not care.

I switched jobs this year and have not organized this of yet. Really happy to know that in their zeal, PayPal feels I need to not do this as the PPFF money needs a gratuity to the irs and myself having to somehow document that all these purchases are for gifts...I am not a 501c, I am just trying to frickin' help.

Of course we all know that people can abuse it. But while in college I sent my son thousands over those years for food and supplies, was he supposed to explain on a return that his dad was giving him pizza and book money?

If that is indeed true, it is an absolute travesty.

Bob C, I expect you will add...I just want to vent as these are unnecessary complications and will absolutely discourage me from using this service. I was using it correctly and now per this information, correctly is not good enough. Garbage, absolute garbage.

No problem Justin, I get it and agree with you. Go look at that article I linked to in post #20, you'll note how it clearly states that donations and charitable type contributions are NOT supposed to be getting included in these G&S type amounts being reported on 1099-K forms, along with all F&F type payments to not be reported as well.

I can also understand the issues and errors that can be made, especially when these changes to the reporting limits get suddenly tossed out the door at literally the last minute. This whole issue has been a potential cluster-you-know-what from the very beginning, and in the IRS' attempt to hopefully make things easier for everyone, it may be having the exact opposite effect for many. But don't go blaming the IRS or any of the companies that have to prepare and issue these 1099-K forms. The bullseye should be squarely on our wonderful federal government, and all the dedicated, hardworking, and wonderful members of Congress, and whoever was in the Executive office that then signed this into law. (And that statement is made with complete and fully intended sarcasm.)

Hopefully you are not getting any of what you talked about reported as G&S type income, and having it show up on a 1099-K directed to you. If you have a concern or potential issue, I would possibly try being proactive, and contacting whatever TPSO (Third Party Service Organization) you may be using to handle these transfers, and explain what you're doing to them, and how to ensure that this activity does not end up as G&S taxable income to you on a future 1099-K.

One other suggestion, try using Zelle for cash transfers. Unlike all the TPSOs like Paypal, Venmo, and so on, Zelle is a direct bank-to-bank transfer, and is not considered as a TPSO, and therefore is not subject to any 1099-K reporting whatsoever. I myself have never used Zelle or set up an account with/through them, but understand they currently, at least, charge no fees for using their money transfer services. However, individual senders/recipients should check with their own bank/credit union to make sure they may not have some processing fee or additional charge they may try adding on to such transfers.

Sounds like a great thing you and others have going. Good luck to you all in keeping it going long into the future.

[Directly]

I received the 1099k for 2020 and 2021 from eBay----I need one for 2022, eBay didn't send --any suggestions?

[bnorth]

Originally Posted by Directly

I received the 1099k for 2020 and 2021 from eBay----I need one for 2022, eBay didn't send --any suggestions?

Did you go to the taxes page on eBay? It should have the details.

[BobC]

Originally Posted by bnorth

Did you go to the taxes page on eBay? It should have the details.

I don't sell on Ebay. Does this tax page you're referring to possibly have a link or something where you can access and download your 1099-K form right online?

If so, that would be helpful information for maybe a lot of people.

[bnorth]

Originally Posted by BobC

I don't sell on Ebay. Does this tax page you're referring to possibly have a link or something where you can access and download you 1099-K form right online?

If so, that would be helpful information for maybe a lot of people.

If you sold through eBay it does.

[Keith H. Thompson]

Yes, I got my 1099-K both in a USPS envelope (Presorted First Class Mail) and a link that I can download.

[BobC]

Originally Posted by bnorth

If you sold through eBay it does.

Ah, great to know, thanks Ben.

[BobC]

Originally Posted by Directly

I received the 1099k for 2020 and 2021 from eBay----I need one for 2022, eBay didn't send --any suggestions?

Hmmmmm? Not to ask a stupid question, but did you double check to make sure you did go over BOTH the $20K sales/200 transactions threshold limits? I can't imagine you asking if you didn't but, still have ask the obvious.

Assuming your answer is yes, any chance a portion of your receipts this past year may have come through as F&F payments instead of what you may have thought were G&S payments? And if so, maybe enough dollars did get switched so it somehow got you below the most recent year's threshold limits after all?

But if that isn't it either, it is possible your 1099-K could still be sitting in the mail system somewhere, or may have been lost/mis-delivered. What you can do is contact Ebay/PayPal, to ask if your 1099-K form for 2022 has been sent out yet. And if they tell you yes, and it was sent a while ago according to them, ask if they can send you another one, but be sure to confirm the address they have for you on the 1099-K form in case they botched up their records and sent your original 1099-K to the wrong address. In which case you'd know why you never received the original one they sent you. Or maybe see if they can just make it available to you online so you can simply go and print it off yourself. You don't need an original to send a copy in along with your tax return, you just need a copy to see what the IRS got told, and make sure you report the proper amount of gross income/sales on your tax return.

Worst case scenario, if your 1099-K copy doesn't show up in the mail on its own in the somewhat near future, and you can't get Ebay/PayPal to send/provide you a new copy, you may have go back through and double check your PayPal G&S numbers and receipts for last year, and use that figure you come up with to report it as your gross G&S taxable income/sales from 2022 on your tax return. As long as what you end up reporting on your tax return equals or exceeds what the IRS thinks you're going to report per the 1099-K form they may have gotten for you, you're good to go.

However, as I mentioned in one of my earlier posts, in response to another person's question, you do have to be careful in figuring out what you should properly be reporting if you have to calculate your taxable G&S revenue yourself due to not getting a 1099-K form after all. If you had received any G&S receipts right around the year-end, or right after it, you need to careful. There could be some timing differences between when Ebay/PayPal thinks you received G&S receipt income, and when you may think you received it. And this fairly new Ebay Authentication Program could possibly be a huge factor in creating even bigger timing differences for people. Unless you are in a formal business, and have elected to use the accrual method of accounting, most every individual is considered and treated as a cash-basis taxpayer. That means you only record and report taxable income in the year when you actually receive it, and only record and report tax deductible expenses in the year you actually pay them. But in the case of PayPal, they are acting as sort of an official agent for you. So when you sell something on Ebay say around 12/28, and the buyer pays you via PayPal on 12/29, you then turn around mail the item off to Ebay Authentication on 12/30. Then because of the year-end holiday and all, the authentication company doesn't receive the item till say 1/4 of the following year, and finishes their work and forwards the item on to the buyer on 1/5. My understanding is that Ebay/PayPal may consider you to have received the income when they first received the buyer's payment on your behalf back on 12/29, but because of the AP program and all, PayPal doesn't actually release your money to you and put it into your account till after the authenticator completes their job and sends the item on to the buyer. In which case you may not think you received the money till after the end of the year. See the potential problem? PayPal/Ebay may be including the proceeds from that 12/28 sale on your 2022 form 1099-K and reporting it as taxable income to you for 2022. Meanwhile, you're thinking you didn't actually receive the money till sometime in 2023, and therefore aren't expecting it to be reported as taxable income to you until next year, 2023. So if you do end up contacting Ebay/PayPal about your missing 1099-K form, also ask them which year, 2022 or 2023, they'd end up reporting that taxable revenue/sales income in for you, based on my above circumstances and story. And if you do get an answer, please come back on and post for all of us what they told you. That way we'll all know for certain exactly when they consider a person to have received taxable income for their G&S receipts.

Hope this helps.

[JustinD]

Originally Posted by BobC

Sounds like a great thing you and others have going. Good luck to you all in keeping it going long into the future.

Thanks for understanding my frustration Bob, and trust me I know exactly what poorly performing branch of government sends this nonsense the average citizens way.

I have not received anything as of yet, but just was a bit grumpy after seeing that post. I really try to make a bit of difference even if tiny during this little nick of time we get to spend on this earthly plane and get defensive about someone taking that away from those that need it. I choose to help children because they do not have a selection in the hands they are dealt. I believe that if they are shown they are not forgotten that they will believe in their strength as adults to push to greater heights of achievement.

I will look into Zelle as I have not tried that as of yet. I just took in donations toward these items in any way possible to make it as easy as possible for those helping.

Have a good one.