eBay promised on Thursday to provide sellers with a guide to the reports they’ll need to file their taxes for the 2022 tax year. eBay will make the guide available in January and said it would explain to sellers where they can download their Form 1099-K report along with information about their refunds and expenses.
eBay also explained the criteria it would use for sending the 1099-K forms to the IRS:
“For tax year 2022, only eBay sellers who: 1) exceed the reporting threshold of $20,000 and 200 transactions, 2) had backup withholding applied in 2022, or 3) are residents of states that have a lower reporting threshold will receive a Form 1099-K.”
Throughout 2022, IRS guidance stated companies like eBay that process payments on behalf of sellers would have to issue Form 1099-Ks to sellers who met a $600 threshold, but after Congress failed to change the law, the IRS changed its guidance on December 23, 2022 to revert back to the higher threshold.
However, the reversion only applies to 2022. Sellers will receive 1099-Ks for tax year 2023 under the new $600 threshold unless Congress takes action in the New Year.
