EBay asking for SS number


 
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LMichaels

LMichaels

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Anyone else had this happen? Gonna try not to be "political" here. But get an email today that Ebay wants my SS# so they can generate a 1099 saying I had more than XX number transactions and over $1000 or both. Hell most of what I sold I did as a favor for my friend because he doesn't have an online account! <edit political statement> What if I refuse to give them such personal information? This is really pi$$ing me off BAD!
 
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From what I understand eBay sales are taxable. Anything over $600 requires them generating a 1099 to you.

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Starting next year, online sellers who use platforms like eBay, Etsy or even Uber — and make more than $600 — will have to report their income to the tax agency. These platforms will have to send both you and the IRS a form reporting your earnings that you'll have to submit when you file your taxes. Apr 12, 2021
 
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Wait a sec.... Why would you be getting a 1099 from fleaBay? Which specific 1099? IIRC, those are for contract for hire, gambling, etc. Hold it.... this may be a legit request (1099-K?) and that'd require a Taxpayer Id Number.
Might be time to buy an hour of your expert tax folks.

Understanding your Form 1099-K | Internal Revenue Service

Form 1099-K reports payments from payment apps or online marketplaces and from credit, debit or stored-value cards. Use it to help figure and report your correct income on your tax return.
www.irs.gov www.irs.gov
 
They would be one of the last entities I'd trust with my SS#. It's one thing to ask for your SS# before the fact, but after the fact doesn't fly with me. Might be a good time to talk to a tax consultant or CPA.
 
Maybe get a TIN or EIN for a hobby business. It will add a little complexity for your taxes but doesn't expose your SSN
 
LMichaels said:
Anyone else had this happen? Gonna try not to be "political" here. But get an email today that Ebay wants my SS# so they can generate a 1099 saying I had more than XX number transactions and over $1000 or both. Hell most of what I sold I did as a favor for my friend because he doesn't have an online account! This new regime is trying to nose their way into everything! What if I refuse to give them such personal information? This is really pi$$ing me off BAD!
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At the risk of Chris kicking my butt, that friggin yellen is a total POS

If a company such as eBay can't obtain your SS# to report what appears to be income, they tell that to the IRS and the IRS makes an assumption of what they think you made (can you say 10X) and they issue you a tax bill with penalties and interest based on their assumption. Unraveling that is a huge undertaking, trust me. Suck it up, provide your SS#, accept your 1099 and have your costs detailed to reduce your taxable income reported on your 1099
 
eBay sellers have been griping talking about this since at least mid-2020 (if not somewhat earlier) as far as I can tell, and it has to do with eBay gradually moving sellers to something called their "Managed Payments" system. Apparently it has been required of larger sellers for quite some time, and applied to all sellers as of 2/1/2021.
 
I pretty much only use eBay to sell used electronics when I upgrade (iPhone, Mac, etc), but got that song and dance when sold an old camera lens earlier this year. So, I guess now we're going to have to itemize expenses (keep your receipts). Do I get a write off if I sell my 5 year old $900 computer for $300? :unsure:😂
 
That’s been happening on eBay for years. My nephew got a 1099 for 1000’s. He was forced into forming a legal business with all the paperwork that goes with it. He was able to offset a lot of expenses to knockdown the tax bill but it was a shocker when the 1099 arrived.
 
Yes, please, let's discuss the facts and avoid the political commentary.

On a related note, PayPal has been hounding me for years for my SS# so they can report the money I receive as donations from website and forum visitors (which I voluntarily report to the IRS anyway because I want everything to be above-board). I never complied until this year when I received a more detailed email, part of which is copied below:

"Because you receive payment for goods or services through PayPal, we need to confirm your taxpayer status. This verification is required to comply with US. Internal Revenue Service (IRS) as well as State tax reporting requirements.

"If your taxpayer status isn't confirmed, your PayPal account will be limited, and you won’t be able to request or receive money. If you’re subject to U.S. tax reporting requirements, we’ll also need to collect your tax identification number and also ensure that your business type is correct within your Profile (Business Information section) to prevent reporting issues in the future.

"The taxpayer identification number you provide will be used to submit Form 1099-K to the IRS and the state associated with your PayPal account's primary address when the payments you receive in a calendar year meet the income reporting thresholds set by the IRS or the applicable state. You can learn more about your state and IRS reporting requirements at www.paypal.com/irs."

See this article: https://www.yahoo.com/now/money-ebay-etsy-irs-wants-160000270.html

It says the stricter enforcement of tax rules for eBay/PayPal/Etsy/Uber income reporting is part of the $1.9T stimulus relief bill and is designed to claw back some of the $381B that taxpayers owe but do not pay each year. Previously you only had to report your income from online sales to the IRS if you made more than $20,000 or more than 200 transactions.

Note that this income, while it must be reported to the IRS, may or may not be taxable depending on your overall tax situation.
 
Any entity that collects money for you is required by law to get your a SSN or TIN. I can't blame you for not wanting to trust them with a SSN but it's a simple matter to get a ID number from the IRS and use that. If you're selling items for others and giving them the $, then the same laws apply to you.

If you sell my wigit for $100 and the Ebay fees + shipping expense comes to $15, you document that along with the $85 you give me and your tax liability is $0.
 
Here's the thing. How am I supposed to "justify" or figure any of that out. I buy and sell mixers mostly. So I might buy 2 or 3 scrap machines or take them as "trades" against a rebuilt. I might sell the rebuilt for say $200. But the cost basis underneath it is difficult at best to figure out. If not impossible. Having gone through identity theft late last year. The last thing I want to do is give a bunch of clowns like FleaBay my SS#! Also many times I sell something for my buddy. As a favor to him. How do I figure that out? WTH is next?! Are the gonna send IRS agents out to garage sales?! Ebay is nothing but a giant online garage sale.
What happens if I don't give them anything? Are feds gonna show up on my door? I don't have any way to keep a detailed enough record of every machine I sell online. I sold my last item on EBay a month or so ago. Maybe I am done with the whole damn mess. No more online payments or paper trails. Everything cash from now on
 
You don't need the cost basis for each machine, just your total annual costs, and these offset the sales revenue.

Scrap machine 1. purchase cost $10, mileage @56 cents a mile to pickup ( 20 miles?) $11.20
Scrap machine 2. purchase cost $10, mileage $11.20
Specialty tool $10
consumable cleaners or lubes or paint $20
etc.

you need enough acquisition costs and costs of goods sold to make your revenue go nearly to zero.

Percentage of internet bandwidth used for sales and marketing
percentage of electricty used to refurb the machine

If you have $2000 in revenue, and $1800 in costs of goods sold and have supporting documentation it should fly under any audit radar,

33027617.jpg
 
DanHoo said:
You don't need the cost basis for each machine, just your total annual costs, and these offset the sales revenue.

Scrap machine 1. purchase cost $10, mileage @56 cents a mile to pickup ( 20 miles?) $11.20
Scrap machine 2. purchase cost $10, mileage $11.20
Specialty tool $10
consumable cleaners or lubes or paint $20
etc.

you need enough acquisition costs and costs of goods sold to make your revenue go nearly to zero.

Percentage of internet bandwidth used for sales and marketing
percentage of electricty used to refurb the machine

If you have $2000 in revenue, and $1800 in costs of goods sold and have supporting documentation it should fly under any audit radar,

33027617.jpg
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More trouble than it's worth. Especially with how much FleaBay is robbing us now to sell an item. I think I am done with the whole thing. Gonna fire sale the last few units or give them to family, and only repair from now on and work in cash only. Ebay and the IRS can kiss my Dago Butt!
 
LMichaels said:
More trouble than it's worth. Especially with how much FleaBay is robbing us now to sell an item. I think I am done with the whole thing. Gonna fire sale the last few units or give them to family, and only repair from now on and work in cash only. Ebay and the IRS can kiss my Dago Butt!
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EXACTLY what LMichaels said for me too except the dago part should be redneck. I’m through with um.
 
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