New ebay payments require SS#?

@oregonpapa Bravo!!

The new threshold starting in 2022 is still $600 in gross sales on any online selling platform, or any type of 3rd party payment processor.  So if you already sold $600 or more online, you are getting a 1099-k in January/February 2023.  

The IRS is also hiring more auditors, so if people in the past have not reported their online sales, getting that 1099-k for the 1st time, could trigger an audit.  The best thing to do is not get a 1099-k.  

Well, according to this, the Dems are changing the reporting threshold to $10,000.  I wonder if that will mean online selling sites like eBay will not be sending you and the IRS a 1099 form for sales over $600?

I, from time to time, sell some item of audio gear for well more than $600, and I don't consider that to be income at all, since I not only paid taxes when I bought it and usually sell it for less than what I paid.
https://justthenews.com/nation/economy/democrats-pare-down-treasurys-irs-bank-reporting-plan-raise-t...

Expecting something to stay on topic here is like waiting for Tinkerbell to sit on your shoulder and advise which stock to buy/sell....

I don't object (more or less) to the police.
I do question shooting someone in the back of the head when shooting a tire or two is less permanent....or distressing.

Paying taxes isn't my main issue with that, what gets done with it is.

I have no problem with those of a conservative bent.  It's those that think that 1/6 was a bunch of rowdy tourists IS.

I'm a business owner, so hold your gripes towards me and about how mistreated the billionaires get leaned on...finally.

'Trickle down' only works when you don't make it to the restroom.
Otherwise, it's BS.

The only time I cough up my SS#  is on med or that which I normally expect to have to.  Over the 'net for anything else, NO.

We only use the 'net for 'client contact'; beyond that, it's direct 'twixt them and us.  Beyond that, 50% down or no go.  You don't cough the balance?

I'll show up and remove 50%, usually how to enter whatever.
The threat to do so is enough.
Disappointing children is a big enough fear, parents?  Oh, boy... ;)

@8th-note,Good to know.  I inherited from my father a near mint vintage Breitling watch a few years ago.  For some reason, he never wore it much.  I had no idea what it was worth; I put it on ebay and you can't believe how much some people will pay for those watches! 

@mtrot 

In the case where you don't have the receipt for a piece of gear you simply estimate it's original value. In 99.999% of the cases you lose money on the transaction.

This whole thing will only be an issue if you get audited. You will report no income from your audio sales on your 1040 and the only way the IRS would challenge that is if they audit you - and even then they wouldn't waste time worrying about a piece or two of stereo gear.

The only time a regular taxpayer who's not claiming bizarre deductions (under $200k income) gets an audit is if they win the IRS lottery and get a TCMP (Taxpayer Compliance Measurement Program) audit that goes through your return line by line. Most people go through their lifetime without ever getting an IRS audit. That means that the IRS takes your word for it when you file a tax return. It really is the honor system. If you claim that you received no income from selling your stereo gear then that is what the government will base your taxes on. You do not have to supply supporting documentation with your tax return.

Also, most people don't realize that the IRS us understaffed and they don't have the time to worry about nickels and dimes from regular taxpayers. Their decisions, virtually all the time, are based on common sense. If you inherited a 1970's vintage Marantz 2325 receiver that you sold for $1500 and have no receipt the auditor isn't going to waste time trying to research what it originally cost. The other interesting thing about inheritance is that you don't pay taxes on what you inherit - so there's no issue with that anyway.

In other words, don't get wrapped around the axle worrying about the tax implications of being an audiophile.

Beat the irs communists at their own game. Keep your receipts to prove you sold the item at a loss. If you owned the item for more than one year use the loss to offset a cap gain from investments or ira distribution. Irs hates people with documented proof. They pray on the stupid. All socialist government money laundering starts with the irs feeding the system with our money! To the officer THANK YOU for your service. When you get the call to mr defunds residence make sure you do the speed limit getting there. You don't want to break the law!

If Paypal & the other services are doing it too, then everyone is screwed!
Great way to screw the little guy trying to make a buck.

I suggest that the audiophile community ditch eBay and support the audio gear aftermarket selling/buying sites. eBay offers no protection. They say they do. From personal experience they don’t. They charge high fees and sales tax. It is not attractive at all. If I want to sell something and reach the audiophile community all you need is Agon and usaudiomart. If you want to, aufiophilestyle. This especially goes for expensive gear. 

• "It is not a sales tax issue but the linking (routing number & account number) of my Bank Account with my eBay account."

Okay, I just went onto my eBay account. They requested that I supply my bank account number and THE LAST FOUR DIGITS OF MY SS#.  This was so they could pay me for what I sell, and also charge me the eBay fees, if any. They already had my bank information through my PayPal account.

I'm not registered with eBay as a business, so there shouldn't be any 1099s. Unless tax laws have changed over time, there are no federal taxes due on hobby items bought and sold. 

Another thought ... On federal taxes; why isn't an allowance given for inflation? In other words, If I bought a MacIntosh amp in 1969 for  $300, and sold it today for $1000, I should be able to calculate the purchasing power of $1000 today vs the $300 in 1969 dollars and pay taxes on the difference, if indeed there is any true gain. 

All the more reason to abolish the 16th Amendment and go with a simple end-user federal sales tax. 

Frank

All online selling sites will be doing 1099s for yearly sales over $600...

@8th-note
Thanks for that helpful information.  One problem I see is that some people selling their used audio equipment may have owned the equipment for decades and have no idea where the original receipt is, nor may they remember exactly how much they paid for it.  They may even have paid cash for it, and no receipt was involved.  Some of this gear may be worth quite a bit of money, but why should they owe any income tax on it? 

Also, what about items that you inherited?  If you inherit an expensive piece of audio gear and have no use for it, why should you owe income tax on any sales proceeds from it?  And you would not have purchased it and received a receipt, either.

It has probably been mentioned but you do not need to provide your banking password. It asks for it, as that is one way they can verify, but if you say no you simply enter in your bank acct # and routing info just like any other electronic payment. 

I'm not sure if it will now generate 1099s but as pretty much anything I sell on ebay is used and at a loss personally I do not care at all. 

Thanks to the OP for this post. I was not aware of this whole issue. Several other posts have excellent information and thanks to them as well.

As a former small business owner I can make a few points.

1. The issue is legitimate and it is not some sort of scam to get your SSN.
2. People who generate over $20,000 from eBay sales probably have a business. They may sell some or all of their stuff through eBay. Hopefully all of them file tax returns for their business. The 1099 will be one piece of paperwork in their tax return. It will need to match up with their other business records to protect them from getting into trouble if audited.
3. In any business you keep track of your cost of goods sold and deduct that from your gross revenue. They should know exactly what they paid for every item they sold on eBay.
4. If you are selling your own used gear, say several pieces that bring several thousand dollars each, you could trigger the 1099. You will need to know what you originally paid for the gear so you can show the IRS that you lost money on the transactions. There will be no income tax due because you didn't make any money. Now I can proudly say why I keep all of my receipts.
5. I can't speak for the IRS (but my wife used to work for them) - they have much bigger fish to fry than trying to tax a few dollars from audiophiles. I couldn't find where they have issued any rules about the new requirement but they will come. By the time you receive a 1099 from eBay and file your tax return there will be rules on how to handle it. The IRS is going to want to simplify this as much as possible.
6. Someone mentioned that eBay had asked for their banking password. Nobody needs your password to deposit money in your bank account or take money out of your account for direct monthly payments. DO NOT ever give your banking password to anybody for any reason. If someone actually asks for your password you are being scammed.
7. Regarding sales tax, if you live in a state that charges sales tax and you buy from eBay you are already paying it. That's one of the beauties of eBay - they take care of that automatically. It is transparent to the seller. If you don't like that then you should get politically involved and propose a different way to fund your state's government. Just because you buy something online doesn't give you the right to avoid sales tax.

As online sales take a bigger share of the retail market we will see our tax laws change to insure that these transactions are fully reported. Any honest business will already be reporting these sales in their tax return but I'm sure that there are thousands of small players who generate a significant income from eBay and don't report it.

Not for me, I'm OFF ebay!😢

It is not a sales tax issue but the linking (routing number & account number) of my Bank Account with my ebay account. 

So, Y’all have gotten ’yer panties in a knot over a simple sales tax?

For your entire life, you have been having your labor taxed, with the government laying claim to that portion of labor that is taxed. Not realizing that another entity, the government, owns the portion of your labor that is taxed, you have never questioned the fact that when another entity owns a portion of your labor, that is the degree to which you have been economically enslaved.

The Founders, in the Constitution, called for taxes to be derived from Tariffs, Duties, and EXCISE taxes, as those are the taxes of free men. They didn’t include an income tax in the founding document because they realized that taxing labor is a slave tax.

In 1913, under the racist president Woodrow Wilson, the Progressives got the 16th Amendment passed, with no provision on how much the government can take ... and they take just enough short of creating a revolution.

With the new Biden tax rates, top earners in high-tax states like California will be paying approximately 52 percent of their total income (labor) in taxes. Let that sink in.

It is time to abolish the 16th Amendment and replace it with an end-user national sales tax. Think about it ... The next time you buy gasoline, watch the gauge rack up the costs. Here in California, fifty cents per gallon are in the price of each gallon in the form of sales (excise) taxes. You pump the gas, fill the tank, put the nozzle back into place, and drive off. There was no accounting, no fear of audits, no deadlines, no IRS ... and no turning in your financial confessions to Ceasar every April 15.

Economic slaves, or free men. Our choice if we truly want it.

Frank

I just had to setup eBay payouts to get the proceeds of a sale. They wanted the last 4 of my social. Not the whole thing.

I don’t sell anything and certainly won’t start.  The boon to selling sites this year will be followed by a drop thereafter, as people just don’t want to provide such sensitive information and deal with the hassle of reporting income from sales.  Another blow to the average person just trying to sell off things that they have lying around.  The internet becomes less useful. 

Everything would be fine IF Ebay claimed they were hacked or not?

No mater the reason your information is NOT safe anywhere. Silly to think it is.

BUT don’t just fling the door wide open for sloppy tax collecting policies.

It’s ALL about TAXES and people paying them or NOT. Nothing else.

Scammers hardly need Ebay to do it..

The government and those that collect money for them do.. I question all the collection is it actually going to the ol TAX Collector. That’s what I question... Is Ebay cooking the books? It would be absurdity to think they WEREN’T. They are as crooked as the tax collection process is.. How broke in that.. the US Tax system.. ALL OF IT.. Din of thieves

Ebay is not in the billions it's in the TRILLIONS

Yeah, I just ended three items I had for sale because all this ticked me off so much.  Like I said above, Craigslist may soon be seeing a boom of activity.

They have asked me for the same information saying that if I don't comply I may lose my rights to sell on ebay. I refuse to comply and I am going to cancel my account. FYI I just recently had a sale the buyer paid using their new system and they will not release the funds until I give them the information.  Not Happening too much scamming going on with ebay. 

Chuck

Sounds like an indirect phishing scam even if it is truly eBay. The compliance costs, safeguarding information alone will be a massive cost increase to companies like eBay. Wait until they have a major breach with information that can empty your bank account. I would never provide bank account#, routing# and SS#. Expect to get screwed by a merchant somewhere just as much as if you sent it to the Nigerian “diplomat” that has money they can’t access overseas and they need your help getting it out for a finders fee. They just need the same information from you. “eBay” and anyone can ask for that information as much as they want, but I’ll take my business elsewhere!

They already send 1099 out. I’ve been getting them for at least 5 years or so now. Even when they put the sale money into PayPal. Also, yes it is counted as income and so you will have to have your tax guy try and bring down the numbers. A good way is to say its a business and take any and all deductions etc. It sucks. This is one reason I am just hanging on to stuff. It is not worth it now to sell on Ebay or here. Sell it locally as someone said.

How about USPS money order or cashiers check? Don't ship until they clear. Cash for items that are picked up, like Craig's List.

I go to work and earn money, the government takes a portion of my money for taxes.

I then buy something with that already taxed money and get taxed on my purchase.

Why is me selling that Item, that I paid tax on, with money I earned that was already taxed, taxable income when I sell it? Pay pal already does this now.

It's outrageous. We need to find another trust worthy method to pay each other here on Agon.

States now want sales tax on 'Net purchases sent to each state. The noose is tightening!

Madness in the USA
Are you really saying that sellers will pay tax on the gross proceeds of sale?
What about the cost price.  Crazy.
Does Walmart pay profits tax on its turnover??
Someone's got something wrong, even the US government isn't that stupid.

I won't be selling anywhere that requires banking and other information.
I remember ebay many years ago when I just sent check, money order or cash. Never a single problem. Where are we headed with all this ?

@chicagoblue1977 1. Thank you for your service. 2. There are Republicans in Chicago and yes, in Chicagoland too.

About eBay, I don’t like buying and selling on eBay. 1. eBay charges sales tax. 2. When you sell on eBay, even though you are not collecting the sales tax, PayPal charged its fee on your sales price PLUS the sales tax! As for audiophiles it is not a good place to be doing business. I shifted more and more of my transactions whenever possible to Audiogon or usaudiomart. Doing so is much better for both buyer and seller. My advice: ditch eBay. 

Screw eBay, PayPal and the IRS. there are other ways to complete a transaction. Apple Pay, Venmo, Zelle, crypto and old school USPS money orders. No way am I paying tax on a item I already paid tax on when I initially purchased it. 

@theo
In that scenario, you would not owe income tax.  Even if you go over the threshold for receiving a 1099, it does not necessarily mean you owe taxes on anything.  It depends on the situation.  If you operate on ebay as a business, then you might.  Or if you sell something that significantly appreciated in value during the time you owned it, you might owe tax on  the appreciated value.  That's the way I understand it.

Back to the topic of eBay, the IRS and 1099’s. How can the IRS justify charging income tax on the sale of an item that was paid for with post tax income, sales tax paid at original purchase and sold at a depreciated price. They should refund the sales tax on the depreciated amount. Time to dump some tea in the harbor!

I just sold a record and bought two CDs on eBay and there was nothing about my SS# anywhere.

@fuzztone
The problem is, I don't know if other families are similar, but in my family, we send each other money via paypal, back and forth, for various occasions, i.e., birthdays, Christmas, Mother's Day, etc.  So, basically, we are sending money back and forth to each other, such that we don't really net anything from it.  But I guess it's possible that one of us might receive over $600 in one year.  Why should anyone in that circumstance have to explain anything on their tax return? 

I see a big Craigslist boom incoming!

Read up. It's not eBay it's IRS. Sell what ever you can this year. Stating in 2022 all transactions over $600 cumulative get a 1099. Airbnb, eBay, Craigslist, blah blah. The you have to supply accrusl cost for all sales on your 2022 tax return. Good luck finding receipts. I would not be surprised if it's not treated just like gambling. Losses can come off of like transactions only.
Migraines for everyone.

This is not the forum for politics.
OP thanks for that, I don't sell that much, but that's great info.

@stero5 Nope they are all in Buffalo Grove and Barrington

There are Republicans in Chicago

@stereo5 I am in Denver now, when I am actually on a surveillance in Rogers Park. 
Such a tech wiz you are.

Next I will be in Russia.  

FROM PAYPAL WEBSITE


U.S. citizen or other U.S. person/entity

Customers who exceed the reporting thresholds set by the IRS ($20,000 USD and 200 transactions) will be asked to confirm their U.S. taxpayer status and to provide their U.S. taxpayer identification number (SSN, EIN, ITIN) and name.

When you need to confirm your U.S. taxpayer status, we’ll let you know by email and by notifications that you’ll see when you log in to your PayPal account. Click the link provided in the email or in the notification and enter the requested information.

The information you provide will be compared to the information on file with the IRS. If it doesn’t match, you’ll be able to review and edit the information up to three times. If the information cannot be verified, you’ll be asked to also provide your address and certify your information. (This is the same information collected in the IRS Form W-9.)
If you have multiple PayPal accounts, you’ll need to confirm your taxpayer status for each account.

If the IRS has notified you that you are currently subject to backup withholding, don’t submit your information online. Instead, contact PayPal Customer Service for assistance with confirming your taxpayer information at 1-888-221-1161 (1-402-935-2050 if calling from outside the U.S.).

How do I receive money or get paid via PayPal?

Getting paid or receiving money through PayPal is very easy! Someone must send a payment to your confirmed email address, registered to your PayPal account. We’ll send a message to that email address to let you know someone has sent you a payment, so you can claim it. To receive your payment, you must open a PayPal account and confirm that email address.

If you already have a PayPal account, you’ll see the recent activity on your Summary page. Click your transaction to view the details.

As soon as you receive the payment, you can transfer the money to your bank account.

Q, look at the last line …. WHATS THE DEAL asking for your bank account ??? 

Actually I am here in Chicago and I use a vpn dude. 

@fiesta75
It actually won't matter if you use Audiogon, Reverb, etc., if you receive payment through PayPal.  PayPal will be subject to these regulations as well, as I understand it.

It looks like there is a threshold, currently $20,000, beyond which platforms such as ebay are required to send you a 1099 form.  But, starting in 2022, the threshold will drop to $600.  It looks like the earliest you would receive a 1099 form for sales over $600 will be in early 2023. And you will have to account for any payments over the $600 threshold on your tax return, although you may not owe taxes on it.  But still, I'm not interested in the hassle of having to fool with that.  

https://www.cnbc.com/2021/03/26/its-going-to-get-harder-to-avoid-telling-the-irs-about-income-from-o...

Haven't heard about ebay asking for SSN, but did hear about bank info and password on THIS forum. I wouldn't provide your SSN, but yes they will send the irs info on your sales and you'll need to pay taxes on that amount. I don't sell on ebay any longer and won't go back. Audiogon, Reverb and Bonanza is the what I use.

I know I have received several emails on eBay’s change in “how you get paid” 

Have not bothered to read these notices because I have not sold anything on their platform in some time.

Next we will have a VAT Tax.....oops before you get your panties in a wad I am kidding. 

@mtrot,

You are correct, I meant to say eBay, my mistake. I read this I believe from one of the Stereophile writers.  It is also written into the 2018 tax law that online sales by private party’s will be subject to paying Federal Taxes on their sales starting with the 2021 income taxes. I understand PayPal is involved. I wonder if I will get a 1099 for everything I already sold this year?  I hope not as I practically gave away the GE Triton Ones I sold.  Paying a tax on that sale is would really add insult to injury. 

@markpao
No, my bank account password was never requested.

@mtrot  I did initially send them my account number along with routing number. Then the next step they wanted my password to that bank account!. I backed off and never gave it to them. Did you have to give your bank account password?