Ebay tax info?

**lammie200** · 02-09-2022, 12:29 PM

I have posted before about last year's Ebay debacle for me. In short, my account was closed by Ebay after me being a member since 2001 with over 750 100% positive feedbacks and, not that it matters to Ebay, but a near perfect credit score. I was given no reason why my account was closed and was told it was Ebay's policy not to give reasons why.

Cut to the last week. I was sent an email from Ebay saying that they are erroneously sending me in the mail a 1099 form and to ignore it. They said that they did not file it with the federal or state tax authorities. I got the form in the mail yesterday. I also got a new user agreement acknowledgement from Ebay saying how they could use my info to send to other parties, etc. What a freak'n ****show Ebay has become. And as I understand it for the year 2021 you would have to sell over $20k worth to get a 1099. I sold $750 worth before my account was closed. Hence their error in sending me a 1099. For the year 2022 the amount changes to over $600 before you get a 1099. The kicker is you can say that you sold items at a loss and supposedly not pay any taxes on the proceeds. But how does the IRS and state know that you sold at a loss if you are just going to get a 1099 for selling over the amount?

Anyone know anything about this?

**Stringswinger** · 02-09-2022, 12:43 PM

My suggestion is that anyone who gets a 1099 from EBay or Reverb best file a Schedule C with their tax return on their instrument selling "business". And you better have documentation to prove your cost of goods if you are audited.

The Biden administration wants additional revenue and that means every armchair guitar dealer who uses EBay and Reverb will now be held to account. Those who do not file a schedule C may find the IRS seeking taxes on those 1099'ed amounts with the IRS making the assumption that the entire amount on those 1099's are pure profit.

I do not want EBay to be able to get into my bank account so that means my days as a seller on their platform are over. And if it wasn't, I would be limiting my sales to less than $600 annually.

**jazzgtrl4** · 02-09-2022, 12:45 PM

good ol cash in hand and craigslist, or classifieds like here and TGP etc, it isn't reported.....the old school way is the new way for me..done with all the fees, Reverb, Ebay all of the $600 1099 bs.

**Sam Sherry** · 02-09-2022, 01:56 PM

Every year in February I find myself dusting off this post, usually for TheGearPage.net:

Are you really seeking tax advice from random strangers?
Are you really seeking tax advice from random strangers on a website?
Are you really seeking tax advice from random strangers on a website about jazz guitar?

All that said and meant, Stringswinger's take looks sound to me.
Caveat venditor!

**lammie200** · 02-09-2022, 02:14 PM

Originally Posted by Sam Sherry

Every year in February I find myself dusting off this post, usually for TheGearPage.net:

Are you really seeking tax advice from random strangers?
Are you really seeking tax advice from random strangers on a website?
Are you really seeking tax advice from random strangers on a website about jazz guitar?

All that said and meant, Stringswinger's take looks sound to me.
Caveat venditor!

Thanks. I wasn't born yesterday. I am just seeking information from people that may have been subject to similar things. Settle down. You aren't saving anyone from anything.

**Phil59** · 02-09-2022, 04:50 PM

But if your 2021 sales were less than $20,000, there is no reason to file anything, isn't that correct?

Originally Posted by Stringswinger

My suggestion is that anyone who gets a 1099 from EBay or Reverb best file a Schedule C with their tax return on their instrument selling "business". And you better have documentation to prove your cost of goods if you are audited.

The Biden administration wants additional revenue and that means every armchair guitar dealer who uses EBay and Reverb will now be held to account. Those who do not file a schedule C may find the IRS seeking taxes on those 1099'ed amounts with the IRS making the assumption that the entire amount on those 1099's are pure profit.

I do not want EBay to be able to get into my bank account so that means my days as a seller on their platform are over. And if it wasn't, I would be limiting my sales to less than $600 annually.

**lammie200** · 02-09-2022, 05:15 PM

Originally Posted by Phil59

But if your 2021 sales were less than $20,000, there is no reason to file anything, isn't that correct?

As long as you don't get a 1099. One of my points is that Ebay sent me a 1099 which they say they sent erroneously. They said that they did not send it to the fed or state. This was for a total selling revenue of about $750 for 2021, so the 1099 was sent in error because the limit for 2021 was $20k. But what am I supposed to believe about them not sending it to the fed or state? They closed my Ebay account without ever giving me a reason.

**Stringswinger** · 02-09-2022, 05:45 PM

Originally Posted by Phil59

But if your 2021 sales were less than $20,000, there is no reason to file anything, isn't that correct?

If you get a 1099, account for it somehow, no matter the tax year. Else, the IRS may do it for you in a very unfavorable way.

**Stringswinger** · 02-09-2022, 05:46 PM

Originally Posted by lammie200

As long as you don't get a 1099. One of my points is that Ebay sent me a 1099 which they say they sent erroneously. They said that they did not send it to the fed or state. This was for a total selling revenue of about $750 for 2021, so the 1099 was sent in error because the limit for 2021 was $20k. But what am I supposed to believe about them not sending it to the fed or state? They closed my Ebay account without ever giving me a reason.

Why did they have your social security number?

**lammie200** · 02-09-2022, 06:37 PM

Originally Posted by Stringswinger

Why did they have your social security number?

That's a good question. I never gave it to them. I gave them my bank info and a copy of my driver's license when they asked. (No need to say it was a scam, btw. It was a verified request by Ebay.) Shortly thereafter they closed my account. Shortly thereafter that they sent me confirmation that my credentials were verified and satisfactory. The 1099 only has the last four digits of my SS# which they could have gotten from my bank I suppose. It all makes me regret using Ebay to begin with. There is a number to call on the 1099 which I am going to do. Can't wait to hear what they say.

Nevermind. Robot on the other side of the call.

**Stringswinger** · 02-09-2022, 08:37 PM

Originally Posted by lammie200

That's a good question. I never gave it to them. I gave them my bank info and a copy of my driver's license when they asked. (No need to say it was a scam, btw. It was a verified request by Ebay.) Shortly thereafter they closed my account. Shortly thereafter that they sent me confirmation that my credentials were verified and satisfactory. The 1099 only has the last four digits of my SS# which they could have gotten from my bank I suppose. It all makes me regret using Ebay to begin with. There is a number to call on the 1099 which I am going to do. Can't wait to hear what they say.

Nevermind. Robot on the other side of the call.

A while back, Ebay got the last 4 digits from all of us for security purposes. If they sent a 1099 to the IRS with just those digits, it will do you no harm.

Every year I send out a lot of 1099 forms to musicians I hire for high paid gigs ( I get a lot of gigs in Silicon Valley and Carmel where we get $300 a man, so if I hire a cat for two gigs, I have to 1099 him/her). A few times over the last 20 years I have made a mistake in the social security number and the IRS has contacted me saying that they could not apply it to any taxpayer as they needed a complete number that matched up to an existing taxpayer.

I do not think you need to worry.

**lammie200** · 02-09-2022, 09:47 PM

Originally Posted by Stringswinger

A while back, Ebay got the last 4 digits from all of us for security purposes. If they sent a 1099 to the IRS with just those digits, it will do you no harm.

Every year I send out a lot of 1099 forms to musicians I hire for high paid gigs ( I get a lot of gigs in Silicon Valley and Carmel where we get $300 a man, so if I hire a cat for two gigs, I have to 1099 him/her). A few times over the last 20 years I have made a mistake in the social security number and the IRS has contacted me saying that they could not apply it to any taxpayer as they needed a complete number that matched up to an existing taxpayer.

I do not think you need to worry.

Thanks, man. That makes me feel better.

The only reason why I posted was to see if anyone else experienced any of the recent mismanagement that I have from Ebay. I still want some way to get back at them. Don't have a clue how to though except to cease my use entirely. Sucks though. It is a good place to get some things now and then even if I don't want to sell there any more.

**vintagelove** · 02-10-2022, 01:44 AM

Coronavirus "relief" package

Because politicians always have your best interests in mind...

**bleakanddivine** · 02-10-2022, 02:07 PM

Originally Posted by Stringswinger

I do not want EBay to be able to get into my bank account....

How do you think ebay will get into your bank account?
The details you give them (account name, sort code, account number) only enable them to pay money into the account. It doesn't enable them to take anything out, any more than giving an invoice or cheque to someone with the same details on would. In fact you probably give more access to utility companies, broadband/tv companies, mortgage companies, local authorities, pension companies etc who can take money out with direct debit authority.

**lammie200** · 02-10-2022, 02:25 PM

I am more worried about things like this erroneous 1099. My latest interaction with Ebay was online this morning. Whoever wrote me back spelled Ebay wrong. And evidently they won't close my account and delete my info or let me do it. They will just suspend it permanently "so they can retain my information for security purposes." Still no reason for the suspension. I just can't believe how difficult Ebay has come to be.

**Stringswinger** · 02-10-2022, 02:30 PM

Originally Posted by bleakanddivine

How do you think ebay will get into your bank account?
The details you give them (account name, sort code, account number) only enable them to pay money into the account. It doesn't enable them to take anything out, any more than giving an invoice or cheque to someone with the same details on would. In fact you probably give more access to utility companies, broadband/tv companies, mortgage companies, local authorities, pension companies etc who can take money out with direct debit authority.

I do not give anyone authority to debit my bank account. Read Ebay's user agreement with respect to direct payments. It also gives them the right to debit your account in the case of returns. If they get hacked, expect problems. If they find against you in a dispute, expect problems. No thanks.