1099k

[pa-louie]

What doesthe $5000 threshold for IRS 1099k include . What does ebay report .

is it the total of the transaction, which imcludes the total of ebays share + postage.

or does it just whats paid out to me.

[monica-sells]

The 1099-K includes all financial data (actual transactions/sales) excluding sales tax that you 'earned'

(item+shipping+handling)

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k

[kensgiftshop]

@pa-louie 

There is no $5000 threshold, it's $600.

Everything Ebay collects, except the sales tax is reported on it.

[nobody*s_perfect]

The 1099-K includes every penny that buyers paid for your items and for the shipping and handling.  eBay does not deduct any of your expenses, such as postage, eBay fees, or returns.

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

The threshold for 2024 has not yet been announced by IRS.  Last November, when IRS announced the threshold for 2023, they said that they PLAN to set a threshold of $5K for 2024, but there has been no official announcement yet.  It might not be official until some time in December. Meanwhile, unless and until there is an official announcement from the IRS, the threshold is $600 at the federal level and in several states. 

https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-...

[albertabrightalberta]

And just so you know @pa-louie , whether you receive a 1099K or not, ALL income is supposed to be reported. 

[toysaver]

When you do taxes many eBayers include a schedule C with the 1040.  Look at it, it's not that hard to fill out and instructions are available.  If you can fill out an eBay listing form you should be able to complete this.   In the expense section you deduct from the 1099 figure so the income you report is more realistic.   There's more to the form than the screen print with a back page to establish the cost of what was sold.   Even if you don't meet the threshold you are still obligated to report the income.

[monroe67]

"The 1099-K includes every penny that buyers paid for your items and for the shipping and handling.  eBay does not deduct any of your expenses, such as postage, eBay fees, or returns."

Just to elaborate a little bit on that:
The sales taxes that the buyers pay are not included in the amount eBay reports on the Form 1099-K.
So, that amount will be the item's price, shipping, and any handling charge that a seller may add into his/her listing(s).  

[mam98031]

@pa-louie 

The current threshold on the 1099K is $600.  They have not yet announced any change for 2024.

Myth: If taxpayers didn't receive a Form 1099-K, they don't have to report income.
Fact: According to federal law, all income is taxable unless it is specifically excluded by tax law. Taxpayers should report any profits from selling goods or services, regardless of if they receive a Form 1099-K.

https://www.irs.gov/newsroom/irs-never-mind-the-myths-know-the-facts-about-receiving-a-form-1099-k-i....

https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

https://www.irs.gov/businesses/gig-economy-tax-center

https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html

https://www.irs.gov/pub/taxpros/fs-2022-41.pdf