eBay and online tax preparation service TaxAct have teamed up to help sellers untangle the impact of new 1099-K requirements for 2022.
Prior to 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 Form 1099-K until they reached the previous IRS threshold.
However, effective January 1, 2022, the threshold is now $600, and marketplaces like eBay will be required to report gross payments totaling $600 or more in a calendar year, with no minimum transaction.
eBay, along with several other large online marketplaces, formed a coalition to persuade Congress to make changes that would relieve micro-sellers.
Targeted 1099-K Tax Tips for eBay Sellers – Powered by TaxAct
Unfortunately, not much happened for Congress to change the regulations. With the holiday season about to pick up speed, small-volume eBay sellers are faced with the prospect of having to deal with a new tax form at the end of the year.
That’s why eBay and TaxAct launched the Tax Information Center for eBay Sellers to help them understand the tax obligations of Form 1099-K.
The eBay Seller Tax Information Center offers expert articles, blogs, tips, and information that may be relevant to each seller’s unique situation.
It also includes a 5-point tax preparation checklist to help sellers as they file their 2022 tax returns.
Unless Congress acts to adjust the threshold before the end of the year, at that point eBay and other marketplace sellers should expect to receive 1099-K forms on items sold online.
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