Received a 1099-K - Didn't meet thresholds? (MA/VT)

[Dunroamin3]

$1700 in ebay sales for the year and 52 transactions...

Why the 1099-k...both are WAY below the thresholds...any thoughts...not a busuiness...just and individual

[Confusedtoo]

HI, 

I rec'd. a 1099-k today. 

I had less than 200 transactions (196 transactions)

I had way less than $20,000.

So why was I issued a 1099-k?

Was it actually reported to the IRS?

Will I have to pay taxes on it?

Any help will be greatly appreciated. 

[temp20190328s]

You probably live in Mass or Vermont.  The 1099-K reporting threshold is lower, only $600 instead of $20K.   You'll need to report it to the state DOR. I suggest also the IRS which you should do for any income.  Just make sure you subtract your fees (paypal, ebay/amazon/shipping), the cost of the item to come up with your profit.  

[st106880]

-Hi

I sold a cell phone and a thermostat I had laying around and I received a 1099-k from Paypal. It is obviously not from business. What do I do with this and where do I report (if necessary) on my taxes?

[temp20190328s]

Do you live in Mass or Vermont?  The 1099-K reporting requirement is lower, only $600 which is why you got the form.

You report it on 1040 Schedule C.  Deduct the costs of the item, your fees (PayPal/Ebay/Amazon/Shipping) to figure out your profit.  

[Beho]

Received 1099-K for $7230, My understanding is that I only get if I exceed $20000 and 200 transactions! Was that sent by mistake?

[temp20190328s]

You probably live in Mass or Vermont.  The 1099-K reporting threshold is lower...$600 instead of $20K.

[Sabby_04]

Can somebody enlighten me about this 1099k form. (I have personal account) 1. Why I received 1099k form though I didn’t hit the 200 transactions and $20,000 total gross? 2. What I’m going to do with this form? Do i need to file it? 3. What will happen if I didn’t report it? 4. Am I going to pay for a penalty? Thanks a lot.

[temp20190328s]

Do you live in Mass or Vermont?  The 1099-K reporting requirement is lower, only $600 which is why you got the form.

You report it on 1040 Schedule C.  Deduct the costs of the item, your fees (PayPal/Ebay/Amazon/Shipping) to figure out your profit.  

Otherwise, it will be viewed as income and you'll pay extra taxes/fines if you don't declare it.

[djy2g33]

Hello,

I got a 1099K in the mail yesterday - my total transactions was $14,XXX - this is under the $20K threshhold - why did I receive a 1099K for the year if I did not meet this number? 

Thank you in advance.

[kernowlass]

@djy2g33

I think its calculated on the GROSS amount before the fee is deducted.