topic Why did I receive a 1099-K form from eBay last year (tax year 2021). I was told you needed income over $20K and/or 600+ transactions, neither of which happened? in Tax law changes

Why did I receive a 1099-K form from eBay last year (tax year 2021). I was told you needed income over $20K and/or 600+ transactions, neither of which happened?

Ed294 — Wed, 28 Sep 2022 16:30:26 GMT

Re: Why did I receive a 1099-K form from eBay last year (tax year 2021). I was told you needed income over $20K and/or 600+ transactions, neither of which happened?

BrenEA — Wed, 28 Sep 2022 17:44:18 GMT

The IRS changed the income minimum reporting threshold in 2022. The new threshold for 1099-K's are now the same as other similar 1099 income reporting documents. You will be issued the 1099-K if your Gross payments are $600. or more. There also is no longer a minimum transaction required number. So if all the gross payment came from 1 or 200 + transactions it no longer has an impact on the issuing of a 1099-K. Only the amount of gross payments is used to determine when a 1099-K is issued. Many companies like e-bay went ahead and implemented the new IRS reporting requirements early for the 2021tax year and forward to be in compliance with the new IRS reporting rules.

Re: Why did I receive a 1099-K form from eBay last year (tax year 2021). I was told you needed income over $20K and/or 600+ transactions, neither of which happened?

Laura_CPA — Wed, 28 Sep 2022 17:53:14 GMT

Hi Ed294,

Happy to help answer that for you! In 2021, eBay was issuing 1099-K's for making sales of $600 (This legislation affects all sellers whose sales total $600 or more in 2022. Sales in 2021 aren't affected. You should expect to receive a 1099-K if your total sales reach $600. There's no minimum amount of transactions.).

Per above, in 2021, you only needed to meet the sales of $600 to be issued a 1099-K, but If you did not meet that either, then, you might have to look more closely on the 1099-K. Please verify that your social security number is correct and their employer identification number is correct, if you find anything different then contact eBay's customer support to clarify the issuance of such form (https://www.ebay.com/sellercenter/resources/2022-changes-to-ebay-and-your-1099-k#:~:text=This%20legislation%20affects%20all%20sellers,no%20minimum%20amount%20of%20transactions.)

Hope this helps you,

Laura