Ebay Consignment 1099 requirement

maggie54 — Mon, 09 Mar 2026 04:33:35 GMT

I sell Collectible Photographs on Ebay for other people. Do I issue them a 1099 for the amount I pay them? I will get a 1099-K from Ebay and I know I will deduct the amount I pay out to them on the Schedule C. If I have to issue them a 1099, would it be 1099 Misc?

Re: Ebay Consignment 1099 requirement

ee-ea — Tue, 04 Jan 2022 18:24:14 GMT

They send you the 1099. You do not send any 1099 to Ebay.

Re: Ebay Consignment 1099 requirement

Opus 17 — Tue, 04 Jan 2022 18:49:47 GMT

@ee-ea

Are you sure about that? They said they were a consignment business. eBay sends a 1099 for their gross sales, but they need to track the percentage paid out to the owners of the consigned property.

@maggie54

As I read the instructions, since you are a business, you are required to issue a 1099 to anyone whom you pay more than $600 during 2021. In this particular case, it would be a 1099-MISC with the payments in box 3. You should be sending all of your consignors a form W-9 before you start doing business with them, to collect their tax number.
https://www.irs.gov/pub/irs-pdf/fw9.pdf

This should be part of your standard on-boarding process along with getting their PayPal or bank information to make the remittances.

You can be penalized for not having a W-9 from each of your consignors. If any of your consignors indicate that they are an S or C corporation, you do not have to issue those entities a 1099, but you should keep the W-9 in your records in case the IRS comes asking questions.

If your consignors refuse to give you a W-9, you may be required to withhold part of their payment as backup withholding and send it to the IRS in their name. They could claim it as a refund by filing a tax return and including their consignment income.

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Ebay Consignment 1099 requirement

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Re: Ebay Consignment 1099 requirement