eBay must collect social security or ITIN numbers from sellers who sell over a certain threshold, it warned on Monday. The post on the eBay Seller Announcement board cited new IRS tax reporting laws.
eBay stated: “Starting on January 1, 2022, U.S. tax reporting requirements will require all online marketplaces and businesses like eBay which process payments, to issue a Form 1099-K to sellers who receive $600 or more in gross payments. Previously, only sellers with 200 or more transactions and at least $20,000 in annual sales received a Form 1099-K. The new requirements may impact the 2022 tax return that you will file in 2023.”
Beginning in January, once sellers’ sales reach $600, eBay will ask them to provide their full 9-digit Social Security number (SSN) or Individual Tax Identification Number (ITIN) before allowing them to continue selling on eBay. “If you have not previously provided your full 9-digit SSN or ITIN, we’ll alert you in your account, and send you an email requesting this information when you reach the sales threshold.”
(Readers should remain alert to scammers who may try to trick them into revealing personal information outside of eBay communications.)
eBay continued:
“What the IRS does and doesn’t tax
“You should also know that many sales on eBay aren’t taxable, so even if you have $600 or more in sales and we issue you a 1099-K, you won’t necessarily be taxed on those sales because in most cases, you wouldn’t owe any taxes on something you sold for less than what you paid for it. For example, if you bought a bike for $1,000 last year, and then sold it on eBay today for $700, it’s unlikely that you would be subject to income tax because your sale price was less than the price you paid for the item. We encourage you to talk to a tax professional when reviewing your 1099-K to determine whether you have taxable income and how to report amounts listed on your 1099-K.
“We’ll continue to keep you updated going into 2022. Look for emails and alerts from us that will help explain what’s changed, and what you may need to do next. In the meantime, you can learn more in our FAQ about Form 1099-K and how they affect you.”
You can find the full post on the eBay Seller Announcement board.
And just like that, after 20+ years, I will be Done with ebay. There is No Possible Way that I am able to keep track of my ‘profits’ and ‘expenses’ on every little $5 and $10 item I sell! Every Photo that I have is in a flat paper bag, and then packed in 6×9 envelope, sometimes another Larger one, and a sealed plastic bag. A business card is included with each sold item. The cost of all these things, plus mailing and packing materials, labels, ink, 10-mile round-trip to the post office, etc…is Incalculable!
Not to mention the Dozens and Dozens of Movie Posters that I have had since the 80s that I Can’t sell, because of the Outrageous New Fees on the Mailing tubes!!
What ‘value’ do I put on all of my Collectibles, and Entertainment Memorabilia? Who decides how much of my so-called income on the sale of these things is ‘profit!?’
ebay has been a Fun little sideline, and a great way to share my time in The Biz with the World. Frank Oz now owns photos that I took on the set of The Muppet Movie. Richard Hatch owned pictures from the filming of Charlie Chan and the Curse of the Dragon Queen that I worked on (great guy, will be missed). Victoria Mature bought some slides/prints from the film, Won Ton Ton: The Dog Who Saved Hollywood, of Her Father, Victor Mature.
I’m sure that the Other sites will follow ebay and bow to the IRS…but sales on those sites have been Pitiful-to-nonexistent.
This is The End.
On $10 or $20 or $30 items, by the time you pay eBay fees, shipping, and the cost of the item itself, there is often very little left. On a $40 item you might make $5 or $10. That’s not a lot of money for the time spent finding the item, storing it, packing it and dealing with issues that come up.
Absolutely! What ebay and the IRS see as ‘income’ is many times Pennies….compare that with the Billions of Dollars of Our money that the Government has ‘misplaced!!’
I just made a special order for a guy on ebay of items that would have totaled over $160…I came down to $125, and he wanted it all for $90! NOT worth my Time or Money invested! (He did pay the $125, which will likely be my Last Ever sale on ebay, or any other online site. I am Not giving Anyone my Social Security Number!!!) I guess all of my memorabilia will just end up at Goodwill after I die!