Stupid Ebay Question 2 2

[Math Teacher]

If you sell $1500 of merchandise on Ebay, does Ebay report this amount to the IRS? If so, is there a limit to which you can sell which avoids reporting of sales?

[vheflin]

"If you’re a managed payments seller who has more than 200 transactions and generates more than $20,000 in sales in a calendar year, you’ll receive a Form 1099-K from eBay. This information will also be reported to the IRS and your state tax authority, where applicable."

[Math Teacher]

7 hours ago, vheflin said:

"If you’re a managed payments seller who has more than 200 transactions and generates more than $20,000 in sales in a calendar year, you’ll receive a Form 1099-K from eBay. This information will also be reported to the IRS and your state tax authority, where applicable."

Is anyone who sells things on Ebay a "managed payments seller", or is that some type of special designation?

[theCapraAegagrus]

36 minutes ago, Joe Ankenbauer said:

Is anyone who sells things on Ebay a "managed payments seller", or is that some type of special designation?

"Managed payments seller" is anyone in which eBay processes their transactions. Since they got rid of in-house PayPal - this means everyone.

So, if you sell 200+ items and make $20k+, you will have to report those earnings via 1099-K.

[Math Teacher]

So, you must sell 200+ items AND make $20,000 before you get a 1099-K form?

If I sell 200+ items but I don't earn $20,000, I'll be OK?

Edited June 4, 2020 by Joe Ankenbauer

[theCapraAegagrus]

1 hour ago, Joe Ankenbauer said:

So, you must sell 200+ items AND make $20,000 before you get a 1099-K form?

If I sell 200+ items but I don't earn $20,000, I'll be OK?

That's my understanding.

[vheflin]

1 hour ago, Joe Ankenbauer said:

So, you must sell 200+ items AND make $20,000 before you get a 1099-K form?

If I sell 200+ items but I don't earn $20,000, I'll be OK?

Also beware how your state handles it - for instance, Massachusetts has a particularly low threshold: $600 gross for any number of sales and you're sent a 1099.  It's unclear if MA also reports to the IRS.

[Ryan.]

Massachusetts has said that they aren't interested in hitting people who find random carp in their attics and sell it online; they want legitimate businesses that use PayPal to have a taxable paper trail. 

[pemart1966]

2 hours ago, Ryan. said:

Massachusetts has said that they aren't interested in hitting people who find random carp in their attics and sell it online; they want legitimate businesses that use PayPal to have a taxable paper trail. 

I wouldn't be surprised that when jurisdictions start tallying up their bills for Covid-19 expenditures that they'll be looking for ANY possible source of revenue that they can find...

[PopKulture]

Does PayPal send you a 1099 at a certain dollar amount in sales or number of items sold? As in the case of people who do mostly board sales? 

[theCapraAegagrus]

14 hours ago, PopKulture said:

Does PayPal send you a 1099 at a certain dollar amount in sales or number of items sold? As in the case of people who do mostly board sales? 

How does PayPal report my sales to the IRS? Will I receive a tax Form 1099-K?

[The Lions Den]

3 hours ago, theCapraAegagrus said:

How does PayPal report my sales to the IRS? Will I receive a tax Form 1099-K?

Very interesting...  

[Math Teacher]

Here's my next stupid question.

If you choose Ebay to print your shipping label, I assume it must be cheaper than going to your local post office. Is the cost of this shipping just deducted from your proceeds? When you print the shipping label, do you just attach to the package and then drop it off at your local post office?

[Kevin76]

37 minutes ago, Joe Ankenbauer said:

Here's my next stupid question.

If you choose Ebay to print your shipping label, I assume it must be cheaper than going to your local post office. Is the cost of this shipping just deducted from your proceeds? When you print the shipping label, do you just attach to the package and then drop it off at your local post office?

yes to all

[PickleRick1216]

19 hours ago, Joe Ankenbauer said:

Here's my next stupid question.

If you choose Ebay to print your shipping label, I assume it must be cheaper than going to your local post office. Is the cost of this shipping just deducted from your proceeds? When you print the shipping label, do you just attach to the package and then drop it off at your local post office?

It's also worth noting the the "clock" to meet your guaranteed delivery date starts when you print the shipping label so don't print it out and wait several days before you drop it off at the post office.

Your buyer will be able to see that you printed the shipping label so best practice is to print and drop off same day if you can.