1099k 200/20k limit question again

[SUPERNINJA]

Originally Posted by SUPERNINJA

Will the 200 transaction EIN requirement go away on New Year's? Does the threshold follow you into the new year?

Originally Posted by BigCJ

New year it generally resets.

Originally Posted by yankee

It is an annual tax year threshold based on USA IRS 1099K laws.

Hi again,
I understand they don't ask for your SS# unless you max out a year's sold items of 200 items or 20k. But others are continuing to say that it's still cumulative. So, if I just sold 150 items in 2017 in a new ebay acct with a total of 15k in sales, but next year, in 2018, I sell just over 50 items on that account,
with total sales over 5k, then I've reached this 200/20k threshold (they say).
Could you please confirm that you are exempt from the 1099k request with SS# verification when you eventually reach this 200/20k? Once and for all, it is not cumulative, just rolls over every year as long as you stay under the threshold........

thanks!

[vogeltron]

They ask for your SSN or Tax ID whenever the project you to get close to it. So if you sell 100 items for $5 in a month on a new account you will get a Tax ID request for US stealth. You can ignore it for a while but it will become permanent as sales increase.

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[sibnuts]

Does ebay or paypal ask you for this? Im about to hit 20,000 just trying to figure out what to do if asked for ss#.

[bjammin]

Paypal asks for this

[dallis]

Nobody is 'exempt'.

IF PP thinks you MAY pass either 200 transactions OR 20K in a calendar year they'll ask for a SSN or an EIN.

If you DON'T give them a SSN/EIN they will suspend your account so you can't take any more payments.

Once they HAVE the SSN or EIN they don't ask ever again. They have it forever.

IF you actually take in 20K+ in ANY calendar year during/after they get your SSN/EIN they will issue a 1099K.

[SUPERNINJA]

[QUOTE=vogeltron;846737]They ask for your SSN or Tax ID whenever the project you to get close to it. So if you sell 100 items for $5 in a month on a new account you will get a Tax ID request for US stealth. You can ignore it for a while but it will become permanent as sales increase.

__________________

Great! So it's not cumulative, and there's a way to beat it.
Don't sell 100 items a month.

[james13v]

Originally Posted by dallis

Nobody is 'exempt'.

IF PP thinks you MAY pass either 200 transactions OR 20K in a calendar year they'll ask for a SSN or an EIN.

If you DON'T give them a SSN/EIN they will suspend your account so you can't take any more payments.

Once they HAVE the SSN or EIN they don't ask ever again. They have it forever.

IF you actually take in 20K+ in ANY calendar year during/after they get your SSN/EIN they will issue a 1099K.

The criteria is 200 AND 20k. If you sold 200 $1 items, paypal obviously wouldn't think you're going to reach the threshold.

[bjammin]

Originally Posted by james13v

The criteria is 200 AND 20k. If you sold 200 $1 items, paypal obviously wouldn't think you're going to reach the threshold.

James13v is correct. It must meet both criteria for a 1099 to be issued. Just selling $20k alone will not cause a 1099 to be generated.

[dallis]

I stand corrected, the word in the text is AND.

Offsite link below to the FAQ sheet below:

https://www.paypal.com/us/webapps/mpp/irs6050w

Text from the site pasted below:

A seller has to exceed both IRS thresholds ($20,000 in gross payment volume and 200 separate payments) in a calendar year before a Form 1099-K is required. We may require that you provide a tax identification number before you reach these thresholds however we will only report your payments if you exceed both thresholds.

I am absolutely certain in the past it said OR, however, I suppose my memory is getting old like the rest of me. :(

[james13v]

Originally Posted by dallis

I stand corrected, the word in the text is AND.

Offsite link below to the FAQ sheet below:

https://www.paypal.com/us/webapps/mpp/irs6050w

Text from the site pasted below:

A seller has to exceed both IRS thresholds ($20,000 in gross payment volume and 200 separate payments) in a calendar year before a Form 1099-K is required. We may require that you provide a tax identification number before you reach these thresholds however we will only report your payments if you exceed both thresholds.

I am absolutely certain in the past it said OR, however, I suppose my memory is getting old like the rest of me. :(

all of our memories are getting old along with the rest of us... But yeah, it's always been both. No worries tho.


It's weird that that is the case. But I suppose someone can sell their car on ebay, or a solid gold rolex, without selling very often, but if you do BOTH things, then you're clearly doing it for profit.