Hey gang I was just wondering if some of you heavy sellers on ebay got your 1099 yet? I didn't get one yet so I am thinking that I didn't sell that much. How many sales or what amount of sales do you have to surpass anyways. Anyone? :thumb:
As a practical matter, if you're an eBay seller, this will effect you unless your gross sales are under $20,000 for the year or you receive fewer than 200 transactions. Reporting for small sellers at this level is not required.
Good to know, can you direct me to a link if one says this information so I can show the wife so she will stay off the nag.
Well it take more than 250 transactions and/or more than $7,500 to earn a 1099. I heard that it take $10,000, but that qualifies as a rumor until someone learns something.
i received an email a few weeks ago that i can access my tax documents. from my understanding is that you have to file now any amount over $20,000 in a year. i am not quite sure what the transaction limit is.
here is the link that was contained in the email i got from paypal last month. https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W here is some info from the page: What is Internal Revenue Code (IRC) Section 6050W? Under the legislation, we'll report to the IRS the total payment volume received by US account holders whose payments exceed both of these levels in a calendar year: US$20,000 in gross payment volume from sales of goods or services in a single year 200 separate payments for goods or services in the same year IRC Section 6050W applies to all payment processors, including PayPal. Our goal is to help PayPal sellers understand and comply with the new requirements.
It would be wise for sellers to check into this more because it's not just ebay that is doing this. Other sales venues and even credit card companies are required to send reports to the IRS as well. Also, keep in mind, you, meaning everyone, are required by law to report ALL sales to the IRS regardless of the amount or number of sales. Yes this new law only requires entities like ebay and credit card companies to send reports to the IRS according to the limitations. But that doesn't mean that you as a seller are off the hook for the taxes if you fall under those limitations.
PayPal is ebay. Here's the actual code from the IRS - http://www.irs.gov/pub/irs-utl/irdm_section_6050w_faqs_7_23_11.pdf
here is what the email i received tells you how to get the form [TABLE="width: 100%"] [h=2]2012 Form 1099-K available[/h] [/TABLE] Dear XXXXXXXXXXXX As required by the IRS, we've prepared a Form 1099-K for you. This form summarizes the gross payments you received through PayPal for the sales of goods or services during 2012. This form is available on PayPal.com. Here's how to view and print your Form 1099-K: Log in to your PayPal account. Select History > Tax Documents. You will also receive this form in the postal mail soon, if you haven't received it already. We send this information to the IRS as well. If you reside in California, Hawaii or New York, we also report this information to your state's tax authority. If you need more information, see New Tax Law for Online Sellers.Sincerely, PayPal
Ya, just got mine in the mail. What in the world. I know I sold a lot but proving I didn't make a lot is going to be the tricky part.
That's why you need to keep good records. If you can't prove what you paid for what you sold, they may just decide those Gross receipts are also Net receipts and you have to pay taxes on the total amount.
Welcome to broke government 101, pass rules making it so expensive to comply with tax codes it actually discourages commerce. Its all the rage in Zimbabwe, Zaire, and other economic powerhouses!
And when commerce is discouraged, tax revenues fall so even more onorus rules are passed continuing the downward spiral.
Ya know Chris? Your right. Why should the bloody tax thingy be so danged complicated that I have to hire somebody to figure it out for me? Oh dear, I forgot. The Goobers are trying to stimulate job growth. [video=youtube;V3FnpaWQJO0]http://www.youtube.com/watch?v=V3FnpaWQJO0[/video]
