How does 1099k work for ebay USA - NY ?

[durden666]

Hi all,

i only sell uk so have zero experience with USA ebay. Recently made a stealth personal, not business, seller account, and have now made my first sale. Account is passed with ID and SSN with no issues. Registered in NY state.

How does this whole 1099k debacle work in usa? I read its not in force till 2025 - then i see ebay already send it depending what state your in. I see some states you get it at 600$ in sales and some states its 20kUSD in sales. I cant find any concrete info on what the threshold is for NY state - can anyone confirm?

What happens when the 1099k gets sent in the post? I have no access to the stealth holders address. Will the automatic issue of 1099k mean the ebay gets suspended? or will they just notify me - and can i somehow fill this in online and get it sent off?

if its 20k USD a year in sales it means i can safely do 1500 usd / month in sales and have multiple ebay accounts ?

Or its fairly easy to pass the whole 1099k debacle by filling the forms and sending them away?

I read also people using some EIN and LLCs or something?

Thanks for any advice.

[JamesNorth101]

There is no state income in NY so the threshold is the same as national IRS limit.

You should register an LLC - then register for an EIN under doing business as the same as the eBay name via the LLC

The 1099-K form gets sent to the address on file by eBay. Its why the LCC is used instead.

The limit is $5k but that hasn't yet been implemented and it may remain at $20k. 2025 is set to be $600 but its highly likely this will not take effect in 2025 as the $20k limit still hasnt been reduced to $5k and a lot of business are not happy with such a low limit. But that is the current plan

Even with the above limits eBay can still choose to send out the form at a much lower $ amount. These limits are the point at which it must be done but it can be sent still at a lower amounts

My understanding at least - open to corrections if I have that wrong

Either way you need to register an LLC (use Wyoming) and then add in the EIN under the DBA on the LLC then add that into eBay

[lymbo70]

But what kind of LLC? single member LLC used my SSN to issue the 1099k. I made that mistake :(

[JamesNorth101]

Originally Posted by lymbo70

But what kind of LLC? single member LLC used my SSN to issue the 1099k. I made that mistake :(

Wither is fine you just need one per account if you use single

Mistake no. But there is a better way to do it without using the snn

[agent006140]

You can ask Ebay for electronic copy which you can download instead of mailing you a physical copy to a physical address .
One copy goes to Internal Revenue Service and it will add the gross sales to the person who gave you his SSN and he should account for it on his income tax return.
Even with the above limits eBay can still choose to send out the form at a much lower $ amount. These limits are the point at which it must be done but it can be sent still at a lower amounts
-Does Ebay really want to send us a copy for the low amount as one copy comes to us,the other goes to the tax authority,eg IRS.

[agent006140]

duplicate post

[ukhomewareseller]

Originally Posted by JamesNorth101

Wither is fine you just need one per account if you use single

Mistake no. But there is a better way to do it without using the snn

what is the better way to make the LLC without using a SSN?

[JamesNorth101]

Originally Posted by ukhomewareseller

what is the better way to make the LLC without using a SSN?

You cam just get a company to do it for you

[agent006140]

Originally Posted by JamesNorth101

You cam just get a company to do it for you

You mean an outside company ,then it will charge you a fee,or are you saying asking someone to serve as your agent

[JamesNorth101]

Originally Posted by agent006140

You mean an outside company ,then it will charge you a fee,or are you saying asking someone to serve as your agent

Either. Using an agent is best. There are fees but it's not that expensive

[ukhomewareseller]

Originally Posted by JamesNorth101

Either. Using an agent is best. There are fees but it's not that expensive

can you recomend an agent please?

[JamesNorth101]

Originally Posted by ukhomewareseller

can you recomend an agent please?

Just have a look on google there are a lot on there

Just do a little research before choosing one to make sure they are legit

[agent006140]

UK sellers sell on Ebay.com,there is no need to have a US seller account.

[JamesNorth101]

Originally Posted by agent006140

UK sellers sell on Ebay.com,there is no need to have a US seller account.

You need an NI then

[agent006140]

what is NI?
I see UK and Aussie,Canadian sellers sell on EBAY

[JamesNorth101]

Its the UK equivalent to SSN

Everything needs some sort of tax verification near enough now

[rsot]

Originally Posted by JamesNorth101

Its the UK equivalent to SSN

Everything needs some sort of tax verification near enough now

Nice clarification.

[ukhomewareseller]

Originally Posted by JamesNorth101

You need an NI then

does the uk NI need to match the UK ebay account info such as name?

or can be mismatched same as bank account?

[Jingling2017]

Originally Posted by JamesNorth101

There is no state income in NY so the threshold is the same as national IRS limit.

You should register an LLC - then register for an EIN under doing business as the same as the eBay name via the LLC

The 1099-K form gets sent to the address on file by eBay. Its why the LCC is used instead.

The limit is $5k but that hasn't yet been implemented and it may remain at $20k. 2025 is set to be $600 but its highly likely this will not take effect in 2025 as the $20k limit still hasnt been reduced to $5k and a lot of business are not happy with such a low limit. But that is the current plan

Even with the above limits eBay can still choose to send out the form at a much lower $ amount. These limits are the point at which it must be done but it can be sent still at a lower amounts

My understanding at least - open to corrections if I have that wrong

Either way you need to register an LLC (use Wyoming) and then add in the EIN under the DBA on the LLC then add that into eBay

What is the 1099-K threshold for 2024?
"Under the guidance issued today, TPSOs will be required to report transactions when the amount of total payments for those transactions is more than $5,000 in 2024; more than $2,500 in 2025; and more than $600 in calendar year 2026 and after.". Nov 26, 2024

[Jingling2017]

Originally Posted by agent006140

You mean an outside company ,then it will charge you a fee,or are you saying asking someone to serve as your agent

He is talking nonsense, first thing anyone in the USA is doing is asking for your social.

[rsot]

Related thread for crossref: http://www.aspkin.com/forums/ebay-di...th-advice.html

[mark2be]

The 600 doller threshold won’t stick they tried that allready ������way too low