Did you get the message? Don't be scared of taxes or the IRS: Here is the link to the Ebay tax page that i believe is not correct- www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794&external=1 Here is the link to the IRS Website which i believe to be correct and i would use- www.irs.gov/newsroom/irs-never-mind-the-myths-know-the-facts-about-receiving-a-form-1099-k-in-2024
So if you sale old crap in ur crib how they handle that. I bought it used it and sold it but like this is ridiculous now if I bought it paid taxes on our purchase then I got to report as income for being a boarder shop a holic thay sales my used crap
@@shannonperez9408 it’s “sell” and as I stated in the video, personal items sold for a loss are not reported/taxable. You also confused the tax you pay when you buy an item (sales tax) with the tax paid on income (federal taxes)
@@RockstarFlipper it's like taxing yard sales ... It's a freaking stupid idea from the Democrats and we just saw what happened to them. I'll quit selling on eBay if I have to deal with this crap every year.
@ I agree. $600 isn’t worth even doing it. The phone right off alone brings the net to zero. Who wants all the headaches of being in business for that.
So if you take the standard deduction, you can't deduct your supplies or your postage or whatever you paid for your merchandise, am I understanding that right
Well you got me confused because I worked and ran a business and did the standard deduction but I still got to deduct all my stuff for my business expenses. So what are you talking about.
Or C, eBay is just providing a 1099 to 600 and above just to cover themselves and leave it up to the taxpayer to report whatever the IRS requires 🤷♂️ Does it really matter, there is probably thousands of “businesses” both big and small that don’t file or commit tax fraud yearly.
My thought exactly. You are required by law to report all income. Ebay may be throwing a few people under the bus here. Remember the days when you cut off your sales prior to $20k so as not to be reported?
@@TheThriftyVeteran oh you know the gov has fed laws for everything, Fed laws fall under title 26 and IRC is the Internal revenue code which income tax laws fall under 🤷♂️
Where on the tax form do you put in your deductions when filing jointly? It seems like overkill to file a schedule C when you've only profited say $2000.
It is a schedule C (makes no difference of your filing Status.) but it can be worth it. If your schedule C shows a loss then you pay less taxes from your day job. Any tax accountant will help you with this.
if you're using cash basis accounting isn't the income only recognized when the money lands in your bank account? so this could be after buying shipping labels on ebay for example. or other expenses like buying stock on ebay.. if ebay there in the US goes the same way as here in the UK where sales get credited to an ebay balance which can then be spent on ebay or withdrawn.
eBay and any other business can send a 1099 at any amount they want. Last year the announcement that they were not going to do the change did not come out until Nov 2023. There is also a few states that are and always have been $600. One or two that is $1000. So many people should not be going tax advice .
It’s sad that for people who either are on Social Security Disability and even younger and receive SSI disability benefits I take it are at a big disadvantage & risk of loosing their monthly benefits or have to give up selling. Just a general question, Does anyone one know the correct, & updated info for people whose is older, retired and drawing their Social Security Benefits or any person whose just drawing SSI - Disability Monthly Benefits and other benefits since those most plp don’t file any type of tax returns?
I can’t speak for people on disability if they should or shouldn’t be getting disability benefits, but before you just make a broad statement that people on disability shouldn’t be receiving it if they work, totally blows my mind, I know many State and National programs that helps people with disability also work and do both and I know many people whose small little disability check don’t pay or hardly cover nothing these days, so be nice if anyone with real facts about this question than just a rude comment would be great!
So eBay is going to create a lot of unnecessary work for thousands of Sellers as well as a lot of unnecessary work for the IRS. A lot of people selling on eBay are selling their personal items for less than the original cost and would have to fill out extra forms (and also guess at the original cost for personal items for which they don't have old receipts) just to prove to the IRS that the $600-$5000 that eBay reported resulted in no net profit.
@@MidnightMerchant If eBay sends you a 1099-K, they also send a copy of it to the IRS. The IRS then matches this gross income against your tax return when your file. If you don't report the 1099-K income, it will trigger an inquiry from the IRS. For personal sales, I think you would report this on Form 8949D and then also write off the cost basis on Form 8949D to show no actual net capital gain (profit). You could instead file a business Schedule C but that may result in self-employment taxes. The gray area I see is that most people have no receipts to prove the cost basis. The responses I get to this question generally run along the lines of "don't worry about it". The whole thing is ridiculous for people selling personal items on eBay. Congress needs to fix it.
So ive sold $5,900 (total sales includes tax) but my net sales are $3,400 (Net of taxes and selling costs) will i have to report since the total is over $5,000, or will i not have to report since the net sales is below $5,000?
@ RIGHT so I will have to report my numbers I get that and I also understand that taxes are calculated from gross profit BUT since my gross profit is BELOW the $5,000 threshold, my question is whether or not I will still have to pay taxes on it.. otherwise there would be no point in there being a threshold
Help...I use fixed shipping. I use the ebay shipping calculator page to figure my shipping cost. It is gone, now it gives a range of cost instead of an actual price I am 73 using ebay to supplement SS on a part time basis. I am not sure that I understand how to use the page the have now.
@@zombemombe because calculated depends on how far the buyer is from you. So when the buyer clicks to buy it will give them the correct price to pay. Could be $4 could be $6. $4-$6. If they are close they pay $4. If they are far $6. Just an example
"Although the Form 1099-K reporting threshold for 2023 is $20,000, companies could still send the form for totals over $600." This is from the IRS site for last year. Ebay may just be doing it at $600 so they don't have to deal with changing it again next year?
What exact information is reported by ebay to the IRS? Your store name? What if you change your store or handle name on ebay during a given year? Next, they may ask you for your business license with your store name on it. If you have more than one ebay account or sell things for family, etc., that may create more issues.
Definitely not a subject not widely spoken in the UA-cam universe. This is eventually going to drive a lot of resellers out of the industry. Bottom line save all your receipts and be prepared to pay at least 50% of your gross to eBay and Uncle Sam.
It's nothing new. I've been getting a 1099-K for the past two years since I returned to selling on eBay. If you make over $600, then you get a 1099-K. Simply file it on your taxes, and depending on what you sold, you may or may not have to owe taxes. I've not made enough to pay taxes, but I still file this on my tax form. Be sure to file it and I would not recommend ignoring it. I believe all e-commerce does this now.
To avoid any extra work - I will just keep my sales at about $500. Just don't buy things you may want to sell in the future. If the economy takes a hit - I don't care.
@@marblox9300 you still have to report it…..this mindset is pure stupidity. I’m gonna limit myself to $500 when I COULD make $5,000 to avoid paying a few bucks in taxes. 🤦♂️.
@@RockstarFlipper Thanks for getting back to me. I really appreciate it. I looked back and had sold about $200 over the past 10 months so I was so confused. I am guessing now that everyone is getting this email since there are two months left for 2024 and therefore, there could be possible sales that would potentially put you over $600.
Hi good night I bought some items from Amazon however they were send to the wrong shipping address. I message the seller no one has replied back to me . I contacted Amazon and they said their is nothing they can do about it.The goods were delivered from October 14 2024.
The IRS will lose more money than they make off this if everyone does this right. It is quite easy to gross $5k from ebay sales in one year. (Your car mileage becomes a big part of this.) Drive 7500 miles in one year and you covered your gross sales; weekly trips to town, stop into a couple of GW's on your way to Disney, see a out of state relative and check out a yard sale. You got it. Now that loss is deducted from the taxes you owe from your day job. Yes it is extra paper work but it could be worth it. This is why it was set for $20,000 and no more than 200 transactions. We have modern tax software that will do the work as well as IRS approved apps. Another stupid move by white shirt and ties to hurt the poor. It also works the other way for some. Need a couple thousand dollars to qualify for "the affordable care act". Yes you can make too little to qualify. But now you got it. 99 senators have Inc. at the end of their names. They will not hurt themselves and will always leave loop holes for them and their kind. Think Roth IRA.
You my man speak the truth. People can now claim earned income and qualify for benefits and not actually pay any taxes. You can write off your internet and cell phone, mileage to the post office and sourcing, packing supplies, items that didn’t sell you bought in the taxable year, ect. The brain trust who created and pass this bill are spending a dollar to get back Pennie’s.
Ebay, could send you a 1099 for $1 of sales for a year if it wanted, regardless of what the law says the minimum is. I give all my contract workers a 1099 regardless of if they work one hour, or hundreds of hours. Because in a good society, we all report all income, and I need to report all my expenses, which includes their income, their income is an expense of mine, but I can not claim it without a 1099 documenting it, so Ebay should learn and save itself millions in write offs, and just issue every account a 1099, while the law says her is the minimum, you can issue one for any amount.
I use casual labor and issue a 1099 when their wages are $600 and above for the year. I pay out of petty cash but I need my documentation if I want the tax deduction. I could issue a 1099 for $1 if I wanted but I would get anyone willing to help me for a few hours here and there if I did. Ask for their Social security # and they are done.
You mention that at 2:57, "sales taxes are not included" and I think you may be wrong in that. Sales taxes are collected under your name or company and you pay Ebay fees on the tax portion,final sale cost and shipping and is part or your gross income at the end of the year you have to subtract the sales tax from the 1099 as if you collected , but ebay collected and send it to each tax collector. Last year was like this so I don't think Ebay will change it. Just see when you sell the same item at the same cost to a no tax state and you will see that Ebay cut is lower.
@@pacoraban1009 nope. It’s taken out. If you sell an item for $20+$5 shipping it’s $25 on your 1099. Not the $1.75 ($26.75 total) after sales tax. They collect it and pay it for you but it’s excluded from your 1099
I will check on that, for 2023 i notice a difference in the calculation they sent me, As the buyer pays only one transaction for the total Ebay has then to report themselves that portion of the taxes collected to the IRS, the IRS was to know where that money is. When you work for Uber, Uber report all the collected payment from the driver as a payment processor and you have to discount the Uber cut in the Schedule C, I will check on that at the end of the year. Also I think when you do a return you have to factor that in also and discount it. Thanks for the update 😊😊😊
@@RockstarFlipperhope you are right. This all sux. Paid taxes when I bought the junk and now paying on it again if I sell it. And the buyer is paying taxes on it too! Same item taxed over and over ...😮
@@susanphelps9674 noooo. SS is a withholding. Money taken from a paycheck to give the government for later. eBay or any platforms do not withhold anything from you. When you report your earnings as self employed you pay a 15% self employment tax that covers all that.
😅Had me worried for a second! Lol - Thanks for bringing this to our attention. I was shocked that I got the same email from eBay too and thought for sure there was a wait for phasing it in! Keep us updated if ebay replies to your question!! Thanks
I bet that Ebay put a bunch of money and effort into getting ready for the $600 threshold. Then when it got delayed they had already spent the money and effort to get it ready and decided to just release. Just like you mentioned in the video, the requirement doesn't mean they can't just send us one regardless of threshold since the law says all income must be taxed.
It is probably easier for Ebay to do $600 limit. That is what it will be eventually. I am an accountant, we have to send $600 for any 1099 eligible companies we pay.
Notice he keeps saying "tax payers" in whatever hes reading. What made you identify as a "tax payer"? 😂 go look up harry reid says taxes are voluntary.
@RockstarFlipper I wasn't hating or denigrating anything you said. I was just speaking to "the people" watching about what is being disclosed. ;) appreciate the video
Did you get the message? Don't be scared of taxes or the IRS:
Here is the link to the Ebay tax page that i believe is not correct-
www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794&external=1
Here is the link to the IRS Website which i believe to be correct and i would use-
www.irs.gov/newsroom/irs-never-mind-the-myths-know-the-facts-about-receiving-a-form-1099-k-in-2024
Can you do an updated video when you find out from ebay.
Thanks for info, think I’ll fell better getting a CPA to feel good.
Indeed
I think eBay is so messed up, they might tell you anything. Right or wrong.
Just covering themselves
So if you sale old crap in ur crib how they handle that. I bought it used it and sold it but like this is ridiculous now if I bought it paid taxes on our purchase then I got to report as income for being a boarder shop a holic thay sales my used crap
@@shannonperez9408 it’s “sell” and as I stated in the video, personal items sold for a loss are not reported/taxable. You also confused the tax you pay when you buy an item (sales tax) with the tax paid on income (federal taxes)
@@RockstarFlipper it's like taxing yard sales ... It's a freaking stupid idea from the Democrats and we just saw what happened to them. I'll quit selling on eBay if I have to deal with this crap every year.
It is still in congress being argued to keep it at 5000.
Needs to be $10,000 or more
@ I agree. $600 isn’t worth even doing it. The phone right off alone brings the net to zero. Who wants all the headaches of being in business for that.
Wrong. Will go back to 200/$20,000
@@deekay2 hope you are right. Lot of unhappy ebayers out there that are real unhappy about this. So congress better fix it!
They shouldn't be taxing our side hustle money dont give them an inch
Received mine two days ago 😊
Always helpful. Thanks
Thank you!
Thanks great info !
Anytime!
So if you take the standard deduction, you can't deduct your supplies or your postage or whatever you paid for your merchandise, am I understanding that right
Basically yes correct
Well you got me confused because I worked and ran a business and did the standard deduction but I still got to deduct all my stuff for my business expenses. So what are you talking about.
Mandatory reporting may be 5k but any business can report any amount below the threshold. It is discretionary.
Mandatory like getting the jab? 😂
Seriously dude get over it with the damn jab we know it was all bs but you don't have to keep talking about it get a life.@@TheThriftyVeteran
Or C, eBay is just providing a 1099 to 600 and above just to cover themselves and leave it up to the taxpayer to report whatever the IRS requires 🤷♂️ Does it really matter, there is probably thousands of “businesses” both big and small that don’t file or commit tax fraud yearly.
I said that in the video...
My thought exactly. You are required by law to report all income. Ebay may be throwing a few people under the bus here. Remember the days when you cut off your sales prior to $20k so as not to be reported?
@@RockstarFlippersay it louder.
@thewayidoit8895 what "law"? 😂
@@TheThriftyVeteran oh you know the gov has fed laws for everything, Fed laws fall under title 26 and IRC is the Internal revenue code which income tax laws fall under 🤷♂️
The tax code is made to be abused. Resellers should embrace it and get those write-offs (the legal ones, of course)...
@@danl.4565 of course
Thanks Casey!
Can you do another video about this when you call eBay? Thanks for the info. Very helpful.
@@mayperez1420 I’m not calling them….i sent them an email. When or IF I get an answer I’ll post it somewhere. Follow me on my social media accounts
i always get it electronically nothing has changed
Right? We run a business, we get a 1099 and pay our taxes. What's the big deal
You used to have to file only after you hit 20g BIDEN MADE IT $600 which is frikkin stupid ! thats $2 a day !
Where on the tax form do you put in your deductions when filing jointly? It seems like overkill to file a schedule C when you've only profited say $2000.
You have to report all income unfort sorry. Your deductions have an expense section
It is a schedule C (makes no difference of your filing Status.) but it can be worth it.
If your schedule C shows a loss then you pay less taxes from your day job.
Any tax accountant will help you with this.
@RockstarFlipper So you don't have to file Schedule C?
Yes Schedule C, i Itemize
if you're using cash basis accounting isn't the income only recognized when the money lands in your bank account? so this could be after buying shipping labels on ebay for example. or other expenses like buying stock on ebay.. if ebay there in the US goes the same way as here in the UK where sales get credited to an ebay balance which can then be spent on ebay or withdrawn.
Depends on your setup and how you do it
eBay and any other business can send a 1099 at any amount they want.
Last year the announcement that they were not going to do the change did not come out until Nov 2023.
There is also a few states that are and always have been $600. One or two that is $1000.
So many people should not be going tax advice .
It’s sad that for people who either are on Social Security Disability and even younger and receive SSI disability benefits I take it are at a big disadvantage & risk of loosing their monthly benefits or have to give up selling. Just a general question, Does anyone one know the correct, & updated info for people whose is older, retired and drawing their Social Security Benefits or any person whose just drawing SSI - Disability Monthly Benefits and other benefits since those most plp don’t file any type of tax returns?
I guess people that don't have to file we'll have to get a CPA.😂@@tommyebay
Well if they're making good money on eBay they shouldn't be getting disability money.
I can’t speak for people on disability if they should or shouldn’t be getting disability benefits, but before you just make a broad statement that people on disability shouldn’t be receiving it if they work, totally blows my mind, I know many State and National programs that helps people with disability also work and do both and I know many people whose small little disability check don’t pay or hardly cover nothing these days, so be nice if anyone with real facts about this question than just a rude comment would be great!
In your personal opinion (not tax advice) I subtract the cost of shipping labels, correct?
@@KathleenScaturro of course. You buy them. They are an expense
@@RockstarFlipper I offer free returns but the buyer pays for original shipping. Yes, I buy them, I guess.
You ALWAYS buy the label. The buyer pays the shipping....but YOU get the money and then YOU purchase the label. Does the buyer purchase the label?
So eBay is going to create a lot of unnecessary work for thousands of Sellers as well as a lot of unnecessary work for the IRS. A lot of people selling on eBay are selling their personal items for less than the original cost and would have to fill out extra forms (and also guess at the original cost for personal items for which they don't have old receipts) just to prove to the IRS that the $600-$5000 that eBay reported resulted in no net profit.
Personal items can be marked out (IE not income) because like you said they are typically sold for a loss
Many people starting out begin by selling personal items. These can be simply marked out, or would there be documentation required?
@@MidnightMerchant If eBay sends you a 1099-K, they also send a copy of it to the IRS. The IRS then matches this gross income against your tax return when your file. If you don't report the 1099-K income, it will trigger an inquiry from the IRS. For personal sales, I think you would report this on Form 8949D and then also write off the cost basis on Form 8949D to show no actual net capital gain (profit). You could instead file a business Schedule C but that may result in self-employment taxes. The gray area I see is that most people have no receipts to prove the cost basis. The responses I get to this question generally run along the lines of "don't worry about it". The whole thing is ridiculous for people selling personal items on eBay. Congress needs to fix it.
So ive sold $5,900 (total sales includes tax) but my net sales are $3,400 (Net of taxes and selling costs) will i have to report since the total is over $5,000, or will i not have to report since the net sales is below $5,000?
You have to report $1
@ okay then I must mean physically pay taxes on.. I’m having trouble on understanding if the threshold is for total sales or net profit
@@Weepingleader taxes are based on profits not gross sales. Get a cpa asap
@ RIGHT so I will have to report my numbers I get that and I also understand that taxes are calculated from gross profit BUT since my gross profit is BELOW the $5,000 threshold, my question is whether or not I will still have to pay taxes on it.. otherwise there would be no point in there being a threshold
@ if you have profit. You owe taxes. Please get a cpa. I csnt give you financial advice
Help...I use fixed shipping. I use the ebay shipping calculator page to figure my shipping cost. It is gone, now it gives a range of cost instead of an actual price I am 73 using ebay to supplement SS on a part time basis. I am not sure that I understand how to use the page the have now.
@@zombemombe because calculated depends on how far the buyer is from you. So when the buyer clicks to buy it will give them the correct price to pay. Could be $4 could be $6. $4-$6. If they are close they pay $4. If they are far $6. Just an example
Thank you!!
I also received this email last evening
Indeed
Ebay seemed to have updated that page with $5000 but with a *
I’ve been receiving 1099s for a couple of years. I was told it’s because I live in a state that requires it. Not all states have been requiring it.
I should have added that my annual sales are WAY under the $20,000 number.
Its not up to the states. its FEDERAL
I always learn so much from you. I'm interested in your concierge service. Where do I contact you about how that works?
Ty!
Very welcome!
"Although the Form 1099-K reporting threshold for 2023 is $20,000, companies could still send the form for totals over $600." This is from the IRS site for last year. Ebay may just be doing it at $600 so they don't have to deal with changing it again next year?
Probably
Most likely true
What exact information is reported by ebay to the IRS? Your store name? What if you change your store or handle name on ebay during a given year? Next, they may ask you for your business license with your store name on it. If you have more than one ebay account or sell things for family, etc., that may create more issues.
ebay id if often different from the business name.
Ss#
So irs saying that k form only file if you seller and sold 600 a year??? 😅😅not from the beginning you start selling on ebay?
@@Pexman-hu7zw it’s per year…..
@ Thank you sir ! 👌👍im ok for now 🫣
Will the soon tax yard sales cause that’s what I do buy use it re sale it I do this every year all my crap wow wow
Good video
Thank you!!
Bring it!!!
Definitely not a subject not widely spoken in the UA-cam universe. This is eventually going to drive a lot of resellers out of the industry. Bottom line save all your receipts and be prepared to pay at least 50% of your gross to eBay and Uncle Sam.
@@HolyDiverDio928 ummmm no. The highest tax bracket isn’t even 50% and you pay taxes on net. Not gross. It’s more like 15-20%
It's nothing new. I've been getting a 1099-K for the past two years since I returned to selling on eBay. If you make over $600, then you get a 1099-K. Simply file it on your taxes, and depending on what you sold, you may or may not have to owe taxes. I've not made enough to pay taxes, but I still file this on my tax form. Be sure to file it and I would not recommend ignoring it. I believe all e-commerce does this now.
What do you mean you haven't made enough to pay taxes? My understanding is you have to pay taxes on any profits no matter how much you've made.
To avoid any extra work - I will just keep my sales at about $500. Just don't buy things you may want to sell in the future. If the economy takes a hit - I don't care.
@@marblox9300 you still have to report it…..this mindset is pure stupidity. I’m gonna limit myself to $500 when I COULD make $5,000 to avoid paying a few bucks in taxes. 🤦♂️.
I got this email, however, I sold way under $600 for 2024. Does anyone know why this might be? Thanks so much.
Could be your state rules, or that ebay is sending the email to everyone even if you dont end up getting one
@@RockstarFlipper Thanks for getting back to me. I really appreciate it. I looked back and had sold about $200 over the past 10 months so I was so confused. I am guessing now that everyone is getting this email since there are two months left for 2024 and therefore, there could be possible sales that would potentially put you over $600.
Hi good night I bought some items from Amazon however they were send to the wrong shipping address. I message the seller no one has replied back to me . I contacted Amazon and they said their is nothing they can do about it.The goods were delivered from October 14 2024.
DId you have the wrong address registered?
No I had the correct address registered ,however the old address was still in my phone so it automatically when to that address .
eBay my be playing safe to protect themselves.
Could be
Not at all. They do not want to lose the ability to charge you extra fees that goes to eBay on sales tax.
The IRS will lose more money than they make off this if everyone does this right.
It is quite easy to gross $5k from ebay sales in one year. (Your car mileage becomes a big part of this.)
Drive 7500 miles in one year and you covered your gross sales;
weekly trips to town, stop into a couple of GW's on your way to Disney, see a out of state relative and check out a yard sale. You got it.
Now that loss is deducted from the taxes you owe from your day job.
Yes it is extra paper work but it could be worth it.
This is why it was set for $20,000 and no more than 200 transactions. We have modern tax software that will do the work as well as IRS approved apps.
Another stupid move by white shirt and ties to hurt the poor.
It also works the other way for some. Need a couple thousand dollars to qualify for "the affordable care act". Yes you can make too little to qualify. But now you got it.
99 senators have Inc. at the end of their names. They will not hurt themselves and will always leave loop holes for them and their kind. Think Roth IRA.
You my man speak the truth. People can now claim earned income and qualify for benefits and not actually pay any taxes. You can write off your internet and cell phone, mileage to the post office and sourcing, packing supplies, items that didn’t sell you bought in the taxable year, ect. The brain trust who created and pass this bill are spending a dollar to get back Pennie’s.
@@HolyDiverDio928 Amen.
Ebay, could send you a 1099 for $1 of sales for a year if it wanted, regardless of what the law says the minimum is. I give all my contract workers a 1099 regardless of if they work one hour, or hundreds of hours. Because in a good society, we all report all income, and I need to report all my expenses, which includes their income, their income is an expense of mine, but I can not claim it without a 1099 documenting it, so Ebay should learn and save itself millions in write offs, and just issue every account a 1099, while the law says her is the minimum, you can issue one for any amount.
Absolutely true.
I use casual labor and issue a 1099 when their wages are $600 and above for the year. I pay out of petty cash but I need my documentation if I want the tax deduction. I could issue a 1099 for $1 if I wanted but I would get anyone willing to help me for a few hours here and there if I did. Ask for their Social security # and they are done.
Im legit! Got mine...Ty ebay....
I’ve been receiving one every year
You mention that at 2:57, "sales taxes are not included" and I think you may be wrong in that. Sales taxes are collected under your name or company and you pay Ebay fees on the tax portion,final sale cost and shipping and is part or your gross income at the end of the year you have to subtract the sales tax from the 1099 as if you collected , but ebay collected and send it to each tax collector. Last year was like this so I don't think Ebay will change it.
Just see when you sell the same item at the same cost to a no tax state and you will see that Ebay cut is lower.
@@pacoraban1009 nope. It’s taken out. If you sell an item for $20+$5 shipping it’s $25 on your 1099. Not the $1.75 ($26.75 total) after sales tax. They collect it and pay it for you but it’s excluded from your 1099
I will check on that, for 2023 i notice a difference in the calculation they sent me, As the buyer pays only one transaction for the total Ebay has then to report themselves that portion of the taxes collected to the IRS, the IRS was to know where that money is. When you work for Uber, Uber report all the collected payment from the driver as a payment processor and you have to discount the Uber cut in the Schedule C, I will check on that at the end of the year. Also I think when you do a return you have to factor that in also and discount it. Thanks for the update 😊😊😊
@@RockstarFlipperhope you are right. This all sux. Paid taxes when I bought the junk and now paying on it again if I sell it. And the buyer is paying taxes on it too! Same item taxed over and over ...😮
Does Ebay take out for Social Security? Just curious.
@@susanphelps9674 noooo. SS is a withholding. Money taken from a paycheck to give the government for later. eBay or any platforms do not withhold anything from you. When you report your earnings as self employed you pay a 15% self employment tax that covers all that.
Self employed folks like me still have to pay into SS....as part of our taxes thats why theres a 15%$ self employed tax
@@DarkShark-xj4fd you pay SS out of your employment paycheck and your self employment tax will apply to the money you made on that side. Get a cpa
@@DarkShark-xj4fd if you made no profit then your business will provide no taxable to income to your normal paycheck. Very easy
😅Had me worried for a second! Lol - Thanks for bringing this to our attention. I was shocked that I got the same email from eBay too and thought for sure there was a wait for phasing it in! Keep us updated if ebay replies to your question!! Thanks
I bet that Ebay put a bunch of money and effort into getting ready for the $600 threshold. Then when it got delayed they had already spent the money and effort to get it ready and decided to just release. Just like you mentioned in the video, the requirement doesn't mean they can't just send us one regardless of threshold since the law says all income must be taxed.
Not a bad point
It is probably easier for Ebay to do $600 limit. That is what it will be eventually. I am an accountant, we have to send $600 for any 1099 eligible companies we pay.
I think they are getting prepared for the 600 it’s coming and they know it. It’s only been delayed for a few years.
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What would Trump do?
Put it back to the original 20k and 200 transactions
If im not mistaken he was fine with the $20k
Notice he keeps saying "tax payers" in whatever hes reading. What made you identify as a "tax payer"? 😂 go look up harry reid says taxes are voluntary.
@@TheThriftyVeteran tax reporters. I clearly said reporting doesn’t mean paying. :)
@RockstarFlipper I wasn't hating or denigrating anything you said. I was just speaking to "the people" watching about what is being disclosed. ;) appreciate the video
We've always reported our sales come tax time. I suppose some people are gonna seize having to finally report their sales.
Absolutely!!
Yo bro. I messaged you to help me with my ebay business but you never replied....
They did last year also