eBay Sellers and Tax Changes New Form 1099-K will debut for 2011 tax year - eBay Suspended & PayPal Limited Forums
eBay Suspension & PayPal Limited Forums  
Join Today
Register Subscribe
     

Registration is fast, simple and absolutely free so please, join our community today!


Go Back   Home > Marketplace Discussions > eBay Discussion!

eBay Discussion! EBay Forum. News, Updates, or Anything eBay is Welcome. A kind of lounge if you will.

Closed Thread
 
Thread Tools
  #1  
Old 10-04-2010
Junior Member
 
Join Date: Jun 2008
Posts: 66
Thanks: 0
Thanked 1 Time in 1 Post
Activity: 0%
Longevity: 89%
iTrader: (0)
Default eBay Sellers and Tax Changes New Form 1099-K will debut for 2011 tax year

eBay Sellers and Tax Changes New Form 1099-K will debut for 2011 tax year

Tax time is upon us again, and this year the IRS has a bit of a warning for eBay sellers: next year you'll be on the hook for the taxes you owe.
Most United States eBay sellers have long known that income generated by eBay sales and PayPal payments is taxable. If you didn't know this, you should. Conventional wisdom has long held (and the federal government believes), however, that many eBay sellers underreport their online income, assuming that it is either non-taxable or largely under the radar.

Enter the 2011 Form 1099-K
Though sellers won't have to change their filing habits in 2010, a new Form 1099-K for 2011 promises to change income reporting by online sellers. The draft Form 1099-K for 2011 implements payments reporting to the IRS for PayPal and credit card merchants, much as already happens with forms W-2 or 1099-MISC for employees and independent contractors.

Starting in 2011, therefore, sellers will be expected to report gross payments via online or credit card payments that coincide with reported 1099-K amounts, then to make adjustments to account for expenses and cash equivalents, fees, chargebacks, refunds, and so on.

What's Reportable
Gross receipts through electronic payment processors (whether purely online like PayPal or involving credit card numbers) received by users of such payment processors. You may be subject to reporting even if you don't think of yourself as a business, provided you receive payments online via PayPal (or any other similar service or merchant account).
Details and Caveats
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.
Otherwise, if you exceed this volume, you'll be required to provide tax identification information (SSN or EIN number, for example) to payment processors like PayPal and will be expected by the IRS to account in your return for the amounts reported on your 1099-K form(s).

What about 2010?
The 1099-K form wasn't introduced for the 2010 tax year, so as you do your taxes this year, enjoy the last year you'll report eBay income as a purely voluntary matter.


eBay Sellers and Tax Changes - eBay - Sell Better on eBay

POSTED AS A READ ONLY MESSAGE. TAXES MUST BE PAID as outlined. SEE A TAX ACCOUNTANT for help.
http://www.aspkin.com/forums/paypal-...-usa-only.html
These two threads are for your info only at this point.
The complete step-by-step guide to get back to selling today!

  #2  
Old 10-05-2010
cherrqell's Avatar
Executive [VIP]
 
Join Date: Jun 2010
Posts: 467
Thanks: 87
Thanked 93 Times in 63 Posts
Activity: 5%
Longevity: 76%
iTrader: (0)
Default Re.eBay Sellers and Tax Changes New Form 1099-K will debut for 2011 tax year

ebay needs to come out with a FAQ regarding how they will determine the $20,000 threshold.

Questions that come to mind are will the gross amount include the shipping charges, and will the amount be less the listing fee, and final value fee.

If they add the shipping, this can add a significant amount to the gross, and if they subtract the fee's paid, this can lower the amount.....

just food for thought......

Anyway, Amazon, and ebay need to hammer out these details before the start of the new tax year.
Closed Thread



Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What's the new law that takes effect in 2011? MadSam Subscriber Discussions 0 07-14-2010 09:41 AM
1099-K Merchant Card and 3rd party payments harryhermit PayPal Talk 1 03-29-2010 10:04 AM
eBay Up, Marketplaces Down 1% in Third Quarter Year-over-Year eBayNews eBay News 0 10-21-2009 09:50 PM
Vero Counter Claim Form for Ebay bigpoppa911 Subscriber Discussions 6 03-25-2009 03:33 PM


Aspkin Group

All times are GMT -5. The time now is 04:52 AM.


Stop the guessing games and learn how you can quickly and easily get back on eBay today!
Read the best selling step-by-step eBay Suspension guide eBay Stealth!
Amazon Suspension? Read Amazon Ghost to get back on Amazon!
vBulletin® Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
Ad Management by RedTyger
no new posts