Re: Not Sure About Ebay
Posted: Tue Feb 16, 2021 1:29 pm
The 1099K for over $20,000 in sales AND more than 200 items (you have to exceed both) is on a national level. This has been true since 2012 when the law, signed by President Bush in 2008 as part of the Housing and Economic Recovery Act (HERA), took effect. This has been around for nearly a decade now, so it's actually nothing new. PayPal has been issuing 1099Ks since 2012.
Where things get sticky is when you live in a state with lower thresholds- some are as low as $600. In these cases, a 1099K gets sent to BOTH the state and the IRS- because, by law, the Feds and states are required to share tax info.
There's really nothing nefarious or new here except the payment system, which is actually owned by Ayden and not eBay. Etsy has the same system, and has had for some years now. From what I understand from Etsy sellers is that it's actually better than Pay Pal, but that's just opinion. My wife had an Etsy shop for awhile and did not have complaints.