RECEIVED PAYPAL 1099K, BUT MY SALES IS $12K AND TRANS COUNT IS 240

[Abe2021]

During the year 2020, I unloaded my doll collections and other unneeded things at home.  And while I was unemployed during the pandemic, I sold a few masks.  All in all, I had 240 transactions, totaling about $12,000.

I just found out Paypal issued me a 1099K.  But my sales is under $20,000, even though the transaction count is over 200.  I check at Illinois tax site and find that Illinois does NOT have a different threshold.  Basically, they would require a 1099K only if IRS requires a 1099K.  

I tried calling Paypal on Sunday morning at 9am at the phone number I find on the 1099K.  But their automated system keep telling me their office is closed ... and that their normal Sunday hour is from 8am to 8pm ... contradicting themselves, and hang up on me.

Can anyone tell me what is going on with the 1099K reporting?  Does this mean I have to report the $12,000?  I thought that selling things you have at home is like a garage sale, and is not taxed?  And if I am to report, how do I show that the things I sell probably costed me more to buy?  I do not have records of the things I buy from so long ago.  HELP!

Any help and guidance would be greatly appreciated.

[PRob80]

Agreed, I sell some baseball cards and what not, no profit really just revolving money, more of a hobby, can’t see how in the world this would be taxable, I can prove little to no profit on all sales

[PRob80]

Illinois has new filing requirements for Forms 1099-K issued to a payee with an Illinois address. • Starting with the 2019 tax year, Forms 1099-K due March 31, 2020, must be filed with Illinois if you are required by the Internal Revenue Service (IRS)* to electronically file Forms 1099-K. • Starting with the 2020 tax year and after, Forms 1099-K must be submitted electronically to Illinois when four or more separate transactions exceed $1,000 or if you are required by the IRS* to electronically file Forms 1099-K. How must I file Forms 1099-K? Payers who issue Forms 1099-K must file these forms electronically

[Chief444]

SO.....since we are not required to file FEDERALLY with such low Sales/Transaction amounts....Would you agree that we do not need to file FEDERAL OR STATE.....?

[PRob80]

I wouldn’t think, this is the first time I’ve received one so I’m not completely sure, my 1009k is 12,000 with 55 transactions so well below in both aspects

[Chief444]

Same here, all sales are like you baseball cards, football, and odds n ends found at thrift stores. Thanks for the help.....I'll file the form for reference incase the thought police show. Tip of the hat to ya !!

[PRob80]

Ya I’m still digging, assuming if we do we would get hit with the 4.95 income tax on it but not the self employed with is almost 15 percent