ebay asking for tax id/SSN? 0

[MIL0S]

did anyone else get an email from ebay asking for their social security number? the message said that due to sales exceeding $1000 for the current year they need to generate a 1099-K form to send to the IRS but I thought that the reporting limits for 2021 was still 200 transactions or $20k and that next year the limit drops to the insane $600 threshold?. 

[John E.]

On 11/13/2021 at 9:31 AM, MIL0S said:

did anyone else get an email from ebay asking for their social security number? the message said that due to sales exceeding $1000 for the current year they need to generate a 1099-K form to send to the IRS but I thought that the reporting limits for 2021 was still 200 transactions or $20k and that next year the limit drops to the insane $600 threshold?. 

I have not received one in the manner that you have and it's likely because eBay already has my info. Does the message specifically mention that a 1099k will be generated for your 2021 sales? Because, no, that shouldn't be. I'm wondering if they are flagging accounts that already have over the $600 threshold in sales this year and have not given up their SSN, eBay thinking that those sellers are also going to make over $600 in sales in 2022, thus get them now.

[zhamlau]

I have a feeling next year will be a very different year on ebay.

[Dayzen]

It could be due to your state having different reporting limits. In Virginia it’s $600 not the $20k and 200 transactions. I got hit with it last year. Didn’t know it was enacted and had a big bill. 

[MagnusX]

I was in a similar situation.
Ebay ask for my SIN
bank account number
and all kind of personal information
in order for me to sell in the site.

Short story; 
I don't longer use Ebay....

[aokartman]

I continue to use eBay (selling and buying), not exclusively, to reach those buyers and sellers who may be found there when I otherwise possibly would not connect with them.  Doesn't hinder my efforts to find a buyer or seller any where else in a broader search, including here,  Site-specific rules, guidelines, and fees are everywhere, Facebook, Craigslist, Paypal, CAF, auction houses, shows, etc.  Just a way of life to be dealt with in the process of connecting with a fellow collector.

David

[Bird]

yes I got it too. They have allowed me to just ignore it in the past but seem adamant now about wanting it.

[MIL0S]

On 11/13/2021 at 10:42 AM, Dayzen said:

It could be due to your state having different reporting limits. In Virginia it’s $600 not the $20k and 200 transactions. I got hit with it last year. Didn’t know it was enacted and had a big bill. 

yes, after looking into it apparently NJ now has a $1k threshold for reporting. I'm not sure when it went into affect, I'm assuming 2021, I wasn't aware of it until now.   how are people handling this? for second hand items sold on ebay that you sell for less than you paid you're not really making a profit and should be exempt, no? and for collectibles that you're 'flipping' you need to itemize and show what you paid for them? what a colossal headache... 

[MIL0S]

also, I've only bought and not sold through Heritage or Comiclink, but do they generate 1099s when you sell?  and if you do sell a big ticket item can you roll money into a new piece without paying taxes on the 'profit'? it was so much easier when art was $20-$50 a pop and this wasn't a concern... 

[Turnando]

I saw in the news that it's a new/coming law that all of the payment apps will report to the IRS income over $600 for goods and services for US sellers.  I think it starts in January?

It should be called The Hobby Tax.

 

[NicoV]

On 11/14/2021 at 1:27 AM, Turnando said:

It should be called The Hobby Tax.

 

Not to be confused with an Hobbit Axe!

Sorry for that

[John E.]

On 11/14/2021 at 8:02 AM, Taylor G said:

It appears that it will still be the case that, as of the 2017 tax law, hobby sales will not be eligible to deduct hobby expenses.

I'm not a tax guy, but I've read a lot about this in preparation for 2023. It's my understanding that if you mark this "extra" revenue as a hobby, you can make deductions as long as your deductions don't exceed your revenue. If it does, which is to say, you're hobbying at a loss, you can't deduct your losses elsewhere on your taxes. BUT if you are a business you can deduct your losses.

Again, not a tax guy. As stated, this is such a colossal headache. And yes, it's not just eBay, but all marketplaces like etsy, facebook mp, paypal, venmo if using goods and services option. Anyone knows if this applies to Zelle? All I know is that this is going to take the fun out of the hobby.

[cstojano]

Would be nice if somewhere in these laws they made it required that these companies also provide your complete history of sales and purchases going back to day 1 for your account. As is, they make it very hard to find even for the current calendar year let alone going back to the late 90s when I first started on eBay. 

[Bird]

On 11/14/2021 at 11:29 AM, cstojano said:

Would be nice if somewhere in these laws they made it required that these companies also provide your complete history of sales and purchases going back to day 1 for your account. As is, they make it very hard to find even for the current calendar year let alone going back to the late 90s when I first started on eBay. 

Yes it can be frustrating. I have been schedule c'ing my sales for 3 or 4 years now, I find it was easier to use paypal to sort according to date but now ebay and paypal are split so it is more difficult.

 

Re: fun...It doesn't take the fun out of the hobby. It DOES take a few $ out of your pocket though. But by and large you can do it without too much fuss. The gubment seems happy with whatever I say, it does add up quickly though! I don't consider myself a big fish, medium at best, but I consigned a large lot to HA one year and had something like $47K in sales that year, but much less in actual profit. Uncle Sam has that Schedule C for a reason. At least I think it is Schedule C. 

[Hockeyflow33]

My state was one of the first to enact these tax changes and I surprisingly received a large 1099 from PayPal for sales but there's a "yard sale exception" where if this isn't a frequent occurrence or your job you don't need to claim the money as income. Found this out after going through everything and organizing a spreadsheet with original prices and deductions for supplies and shipping. 

[John E.]

On 11/14/2021 at 11:07 AM, Bird said:

I have been schedule c'ing my sales for 3 or 4 years now,

Do you have to be a registered business to file a schedule C?