1099-K and Tax Withholding FAQs

The IRS requires us to collect a Tax Identification Number (TIN) for each seller account, which can be an SSN, ITIN, or EIN.

• Social Security number (SSN). A Social Security number is the number the Social Security Administration issues to eligible individuals. The IRS uses this number for tax purposes.
• Individual Tax Identification Number (ITIN). An Individual Tax Identification Number is the number the IRS issues to individuals not eligible to get an SSN. The IRS uses this number for tax purposes.
• Employer Identification Number (EIN). An Employer Identification Number, also known as a Federal Employer Identification Number of (FEIN), is the number the IRS issues to businesses. The IRS uses this number for tax purposes.

Form 1099-K is a document that taxpayers receive to report payments that payers like eBay make to you. It reports the gross amount of all payments within a calendar year. The gross amount includes all income and does not exclude credits, discounts, fees, refunds, etc. In 2024, for calendar year 2023, we will send you a Form 1099-K if: 1) you sell more than $20,000 and 200 transactions, 2) you did not give us your SSN, ITIN, or EIN and we withheld on your payments or your payments were subject to withholding, even if you did not have available funds to cover your withholding tax, or 3) you reside in a state that has a lower reporting threshold than the Federal reporting threshold for 2022 and have met that threshold.

Learn more about Form 1099-K

For 2023, the IRS requires eBay and other online marketplaces to report total sales exceeding $20,000 and 200 transactions on Form 1099-K. Use the Form 1099-K that eBay sends to you when determining whether you have taxable income from the sale of goods.

If your total sales on eBay exceed the Federal reporting threshold of $20,000 and 200 transactions in 2023, your Form 1099-K will include your total sales amount for all goods you sold during the calendar year. This includes shipping costs, credits, cash equivalents, discount amounts, fees paid to eBay, and refunded amounts. You can read more about what is included in your Form 1099-K on the Help Hub.

Your Form 1099-K will be issued by January 31 for payments received during the prior year. It will be mailed to you or you can opt-in to paperless access to receive an email when it’s ready for download. If you haven’t opted-in to paperless and don’t receive your physical copy by January 31, please contact us.

We can provide you with transaction information but we’re unable to give you tax, legal or accounting advice. Please consult a tax professional with any questions regarding your income tax return or amounts subject to income tax. We have partnered with TaxAct to provide information and resources to consider for your tax filing.

If you have multiple eBay accounts associated with the same SSN or ITIN, the Form 1099-K reporting threshold will be calculated by combining all transactions for all accounts for each calendar year. If your combined sales for 2023 are more than $20,000 and 200 transactions, you’ll receive a Form 1099-K for each account, even if one or more of the individual accounts does not exceed the IRS reporting threshold. The same applies if you reside in a state that has a lower threshold than the IRS threshold.

Here are some general IRS FAQs on this topic.

We’re required by law to ask for your 9-digit SSN or ITIN for each account you have with eBay. The IRS and States require the TIN to comply with Form 1099-K requirements. Maintaining accurate information from our sellers ensures there are no payout delays.

Our goal is to build and maintain a safe and trusted marketplace for our sellers. To do this, we need accurate information about our customers, including your SSN or ITIN. Learn more about privacy and security in our Privacy Center.

We’re committed to protecting your personal data with leading edge information privacy and security programs to ensure your data is secure. We also recommend you enable 2-step verification. We’ll give you ongoing visibility into any information we collect and the ability to easily update your preferences at any time. Learn more about our data security in our Security Center.

A B Notice is a backup withholding notice for the seller that eBay receives from the IRS. eBay is required to send a letter to every seller for whom the IRS sends a backup withholding notice unless the seller’s information has been updated. There are two B Notices, a First B Notice and a Second B Notice.

If you’ve sold goods through eBay and the total sales exceed the IRS threshold, the IRS requires us to send you a Form 1099-K. When your name and SSN, ITIN, or EIN on your eBay account doesn’t match the IRS’s records, you’ll receive a B Notice (notice of backup withholding) through USPS.

eBay sends B Notices to the address on your eBay account. If you haven’t received a First B Notice in the mail, or if you need to verify and update the information in your account, you can fill out an electronic Form W-9. You can do so through Seller Hub or My eBay. If you received a Second B Notice, you can upload a copy of your SSN Card, IRS Letter 147C, or IRS Letter 685C through Seller Hub or My eBay. Please contact us if you need additional help with the electronic Form W-9, downloading and submitting the Form W-9, or uploading additional documents.

The First B Notice requires the seller to provide a valid Form W-9 with a correct Name and TIN (SSN, ITIN or EIN) combination.

The IRS requires eBay to withhold 24% on all gross payments from sellers that fail to provide a valid W-9.

You can find more information about B Notices and the requirements eBay has to comply with in IRS Publication 1281.

The Second B Notice requires the seller to provide a copy of their SSN card (individual), IRS 147C letter (business), and IRS 685C letter (individual with an ITIN). To obtain a new SSN card or the IRS letters, the seller will need to contact the IRS or Social Security Administration (SSA) to obtain the appropriate documentation with the correct Name and TIN combination.

The IRS requires eBay to withhold 24% on all gross payments from sellers who fail to provide the appropriate required and valid documentation.

You can find more information about B Notices and the requirements eBay has to comply with in IRS Publication 1281.

A 147C Letter is a letter the IRS issues to confirm the name and EIN of a business. To obtain a 147C Letter from the IRS, the seller must call the IRS at 1-800-829-4833 and request it.

A 685C Letter is a letter the IRS issues to confirm an individual’s name and ITIN. To obtain a 685C Letter from the IRS, the seller must call the IRS at 1-800-829-4833 and request it.

After you receive a B Notice in the mail, you’ll need to either fill out an electronic W-9 for the First B Notice or upload the required documentation through Seller Hub or My eBay for a Second B Notice. Please contact us if you need additional help with uploading the documents.

You can find more information about B Notices and the requirements eBay has to comply with in IRS Publication 1281.

The B Notice is sent to you through regular mail, but you can fill out an electronic W-9 and update your account here. If you've submitted your W-9 online, there’s no need to send us a Form W-9 through the mail.

The IRS requires us to collect an TIN, which can be an SSN, ITIN, or EIN. You can provide the TIN that is applicable to you. You can find more information about applying for a TIN from the IRS.

How and where you enter your business or personal name on a W-9 depends on the type of business you’ve set up.

• If your eBay account is a business—Enter your business legal name on line 1 of the W-9 and enter your business EIN.
• If your eBay account is a sole proprietorship or single member LLC—Enter your name as shown on your income tax return on line 1. You may enter your business, trade, or “doing business as” (DBA) name on line 2. If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN. If you are a single-member LLC that is disregarded as an entity separate from its owner, enter the owner’s SSN (or EIN, if the owner has one).
• If your eBay account is an individual—Enter your legal name on line 1 and enter either your SSN or ITIN.

Yes. If you’re selling as a business entity (sole proprietor/single member LLC, corporation/multi member LLC, partnership), you’ll need to provide the following:

• Individual identification information for beneficial owners, officers, directors, or account managers

• Legal business name

• “Doing Business As” (DBA) name (if you have one)

• SSN, ITIN, or Employer Identification Number (EIN)

• Business address

• Phone number

eBay is required to collect your TIN (SSN, EIN or ITIN). If you don’t provide us with your TIN, your payouts will be put on hold, your ability to list and sell on eBay may be restricted, and we will deduct backup withholding from your payments. For more information, contact us.

We can’t speak for other platforms, but all platforms (third-party settlement organizations and payment processors) are required to comply with the same IRS requirements.