Ebay 1099 threshold

[EasyMoney00]

Does anyone know the threshold for ebay to send a 1099? Ive heard rumors of a $5,000 limit, others stated possibly $600. Obviously you're supposed to claim profits either way but would just make things easier if the IRS forced ebay to lower the threshold and did the leg work for you.

[disneysteve]

The Federal limit for 2024 is $5,000 but individual
state limits may be lower. It’s $1,000 here in NJ. But it really makes no difference. You have to report your income just the same with or without a 1099. Getting one doesn’t make the process any easier.

[QuarterMillionMan]

Similar to gambling wins, all wins should be reported but I only report if I get a W-2G.

[disneysteve]

Similar to gambling wins, all wins should be reported but I only report if I get a W-2G.

The problem somewhere like eBay is the tax cheats are a problem for the rest of us who do it right. It’s challenging to compete with sellers who don’t pay 25% to the IRS.

[EasyMoney00]

Similar to gambling wins, all wins should be reported but I only report if I get a W-2G.

Absolutely. As of yesterday, I passed the $5k mark so I'll get a 1099 from eBay. Actually I think I'm sitting at $7500 for the year. I'll be keeping an eye out for that email.

[disneysteve]

Absolutely. As of yesterday, I passed the $5k mark so I'll get a 1099 from eBay. Actually I think I'm sitting at $7500 for the year. I'll be keeping an eye out for that email.

Just remember that getting a 1099 changes nothing about filing. You do it exactly the same as without one. Be sure to take all legit deductions on your schedule C like packing supplies, mileage, cost of goods, eBay fees, etc.

[myrdale]

Could you explain exactly what is considered taxable when selling something on Ebay? For example, I have three used college books for sale.

1) The first book I purchased $100 several years ago, and today I sold it for $200.

2) The second book I purchased for $100 but I can only sell it for $50.

3) The third book I found at a garage sale, basically for free, and I sold it for $100.

Discounting inflation, I made a profit on the first, didn't recover the full price of the second, and the third was basically a windfall. What does the government want from me?

[disneysteve]

Could you explain exactly what is considered taxable when selling something on Ebay? For example, I have three used college books for sale.

1) The first book I purchased $100 several years ago, and today I sold it for $200.

2) The second book I purchased for $100 but I can only sell it for $50.

3) The third book I found at a garage sale, basically for free, and I sold it for $100.

Discounting inflation, I made a profit on the first, didn't recover the full price of the second, and the third was basically a windfall. What does the government want from me?

I’m not an accountant so take this for what it is. It depends how you file. If you just do a personal return you’d report the $350 as miscellaneous income and be taxed on the full amount. If you want to be able to deduct costs and expenses you’d need to do a schedule C. Then you’d only be taxed on your net profit.

You won’t get a 1099 this year unless you’re over $5,000 including shipping paid by buyers or whatever amount the threshold is in your state. It’s $1,000 here. Some states are $600.

[EasyMoney00]

Just remember that getting a 1099 changes nothing about filing. You do it exactly the same as without one. Be sure to take all legit deductions on your schedule C like packing supplies, mileage, cost of goods, eBay fees, etc.

The only thing I would only want to deduct is the eBay fees, since they add up pretty quick. I didn't track anything else so trying to figure that out would be overwhelming. I never did a schedule C but the online filing I use is relatively user friendly so deducting that should be straight forward.

[disneysteve]

The only thing I would only want to deduct is the eBay fees, since they add up pretty quick. I didn't track anything else so trying to figure that out would be overwhelming. I never did a schedule C but the online filing I use is relatively user friendly so deducting that should be straight forward.

If you plan to continue selling in 2025, be sure to start keeping good records from day one so that you don't have issues next time around. A simple spreadsheet is all you need. I use Google Sheets which is free. It's silly to pay more taxes than necessary. Take the deductions you are eligible for.

There's a really good Facebook group called "ebay sellers helping each other" that is a great place to have all of your ebay questions answered, but we don't give tax advice there just so you know.

[kork13]

Another thing to consider, taxes only really become a factor when you’re making a profit. If you bought an item new & sold it used for less, there’s effectively no tax due. Technically, you could file taxes on the sale, claim some portion of the purchase cost as an expense (I think something like use-depreciation would apply, so you don’t get the entire cost back an expense … but this is detailed tax mumbo jumbo). In any case, this is why for the casual eBay or yard sale seller of their own old stuff, taxes aren’t really an issue. You’re not making a net profit, so there’s nothing to tax.

[EasyMoney00]

I guess I assumed that things such as eBay fees and postage (since I purchased through eBay) would be reflected in the 1099. That's a bummer. I will definitely deduct those two expenses.

The 13% plus shipping on $7500 in total sales is over $1k. Ill have to go back and tally those up.

[myrdale]

Another thing to consider, taxes only really become a factor when you’re making a profit. If you bought an item new & sold it used for less, there’s effectively no tax due.

That is my question.

[ua_guy]

If I sell a car I own for $10,000 on eBay, it sounds like I'll have to file a 1099 for that, would that be true? Doesn't matter what the car is/was worth, eBay shows I made $10k in "income". And then I'd have to prove the offset on my taxes, it was actually my car that I purchased for myself, etc, so I shouldn't have to pay "income" tax on that $10k.

That's kind of a pain, if it's true...

[disneysteve]

Another thing to consider, taxes only really become a factor when you’re making a profit. If you bought an item new & sold it used for less, there’s effectively no tax due. Technically, you could file taxes on the sale, claim some portion of the purchase cost as an expense (I think something like use-depreciation would apply, so you don’t get the entire cost back an expense … but this is detailed tax mumbo jumbo). In any case, this is why for the casual eBay or yard sale seller of their own old stuff, taxes aren’t really an issue. You’re not making a net profit, so there’s nothing to tax.

True. You are only taxed on profit, but it depends how you file your taxes. If myrdale lived here in NJ and sold $1,000 worth of books including shipping charged to buyer this year, he will get a 1099. If he simply reports it on his 1040 as miscellaneous income, he'll be taxed on $1,000. You don't get to take business deductions on your 1040. You need to file a business return to do that as far as I know. It's not a big deal. It's only one extra form, the Schedule C. I'm sure any of the tax software programs include that.