eBay and online DIY tax preparation service TaxAct have partnered to help sellers untangle the impact of the new 1099-K requirements for 2022.
Before 2022, the IRS did not require eBay or other online marketplaces to issue Form 1099-K until sellers reached 200 transactions and $20,000 in gross payments each year.
Several states had lower reporting thresholds for state taxes, but most eBay sellers did not receive the 1099-K form until they reached the previous IRS threshold.
However, as of January 1, 2022, the threshold is now $600, and marketplaces like eBay will have to report gross payments totaling $600 or more in a calendar year, with no transaction minimum.
eBay, along with several other major online marketplaces, formed a coalition to persuade Congress to make changes that would provide relief to micro sellers.
Targeted 1099-K Tax Guidance for eBay Sellers—Powered by TaxAct
Unfortunately, not much has happened to get Congress to make an adjustment to the regulation. As the holiday season will ramp up soon, small volume eBay sellers are facing the prospect of having to deal with a new tax form at the end of the year.
That is why eBay and TaxAct have launched the Tax Information Center for eBay Sellers to help them understand the Form 1099-K tax obligations.
The Tax Information Center for eBay Sellers offers expert articles, blogs, tips, and insights that may be relevant to each seller’s unique situation.
It also includes a 5-point tax preparation checklist to assist sellers when they file their 2022 taxes.
Short of Congress acting to adjust the threshold before the end of the year, at this point eBay and other marketplace sellers should expect to receive 1099-K forms on items sold online.
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