Holy Grail information on eBay 1099Ks

Does eBay include sales tax in the information it provides to the IRS in Form 1099K? EBay now affects all money paid by buyers, not PayPal, which previously processed payments in the eBay market. This means that sellers need answers from eBay about the information it provides to the IRS in Form 1099-K.

The sellers had questions until eBay started publishing 1,099,000. This topic is from the fall of 2020 shows how sellers got different answers about 1,099,000 depending on who spoke. (Every $ eBay process will be shown on eBay 1099Ks, said one seller, answering a seller’s question about including sales tax in the form. Sales tax not included on eBay 1099Ks, wrote another.)

Confusion added problems with remittances. Earlier, states required sellers to collect sales tax from buyers and transfer tax directly, then some states began requiring online platforms to collect and transfer sales tax instead of sellers.

Questions about 1099Ks continue, especially with a focus on new lower threshold which requires payment operators such as eBay to issue 1,099,000 to sellers who make deals for at least $ 600 for the 2022 tax year.

And so, the topic of the IRS 1099-Ks form re-emerged during eBay’s weekly chat session on Wednesday: “Why are there still so many problems with managed payments? You can’t get the right to your 1099. They don’t even come close to my numbers, ”the seller wrote.

Another seller who answered raised another question, this is whether eBay included all transactions in 2021 in 1099K for 2021, or eBay included all transactions from payments made in 2021.

The eBay moderator responded later in the topic with some clarification:

“I just wanted to clarify that we are leaving the date when the buyer paid. This is not a date of sale or payment to the seller. I contacted the payments team to double-check this, and they said that this help page (source of truth for Form 1099-K) states that we use payment transactions during the calendar year. “

The page, which the moderator called the “source of truth” for 1099-Ks, also included the following information or eBay includes sales tax in the form of 1099Ks:

“Also, Form 1099-K does not include sales tax if it is automatically collected and transferred to eBay.”

The full section explains why the numbers may seem inaccurate when sellers compare them to their numbers:

“Because Form 1099-K is an IRS information declaration, it includes the gross amount of all reported payment transactions during the calendar year. This amount does not include adjustments, such as loans, rebates, fees, refunds or any other adjustable amounts. This means that the gross amount in your Form 1099-K may not be the final reporting amount in your tax return. ”

eBay has also addressed this issue in a podcast from Manish Belsarewhich you can access on this page.

Belsare took the opportunity to inform podcast listeners that eBay is against the lower threshold for the 2022 tax year, and said: “You can also visit eBaymainstreet.com and learn how eBay fights heavy legislation like this on behalf of our sellers. You can express your concern on this site and even send a letter to your member of Congress about it. ”

We expect questions about the 1099K form to continue, especially since it now applies to small-volume sellers who may view eBay as a hobby rather than as a business.

Ina Steiner

Ina Steiner
Inna Steiner is a co-founder and editor of EcommerceBytes and has been reporting on e-commerce since 1999. She is a widely cited author on market sales and is the author of the book “Turn eBay Data into Dollars” (McGraw-Hill 2006). Her blog was featured in the book “Heroes of Blogs” (Wiley 2008). She is a member of the Association of Internet News (September 2005 – present) and reporters and investigative editors (March 2006 – present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

https://www.ecommercebytes.com/2022/02/18/holy-grail-of-information-about-ebay-1099ks/ Holy Grail information on eBay 1099Ks

Back to top button