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

[TA8]

looks like they messed up this year, I'm under 20K but over the 200. and received it. also it does not show on my online account, only received it in the mail....

[cms123]

Same here. Under 200 transactions and well under 20k sales...not even close. Now their call center keeps hanging up on me claiming unusually high volumes and technical issues. Perhaps many are calling re: this issue?!

[Dunroamin3]

accountant said it can't be ignored...IRS has been cracking down on these types of transactions...and you better claim was his advice...he suggested filling out schedule C...i sell stuff i buy at retail for profit...my profit after all is said and done was about 300 bucks...complete waste of time but better than being flagged.

good luck everyone

[anthony1232]

was just sent a 1099 form and have no clue why considering I was nowhere close to there required 20k and 200 sales like less than half and and wondering why they sent me one

[pamsbary]

Almost all of these transactions were from eBay which is supposed to fall under Online Garage Sales.
https://www.irs.gov/businesses/small-businesses-self-employed/tax-tips-for-online-auction-sellers

[BlueBunny]

I believe one of these articles will give you the answer... https://www.paypal.com/us/selfhelp/article/how-does-paypal-report-my-sales-to-the-irs-will-i-receive... (or) https://www.paypal.com/us/webapps/mpp/irs6050w

[TA8]

me too, under 20k but over 200, got it in the mail, but it is not showing online in my account...

[pamsbary · Accepted solution]

I just spoke to Paypal. It is a new law in some states,just taking effect. (e.g. Vermont and Massachusetts) that lowered the threshold from $20,000 and 200 transactions. In my state it is $600. It just means that they have to report the income coming through Paypal. http://tax.vermont.gov/news/1099-k-information-reporting

In terms of it being taxable, it depends on your tax situation and what the transactions are.

For example, periodically selling household items is considered the equivalent of an online yard sale. If you paid more for the items than you sell them for, the sales are not reportable.   https://www.irs.gov/businesses/small-businesses-self-employed/tax-tips-for-online-auction-sellers.

Nevertheless if you hit the new thresholds you will get a 1099-k. Paypal's advice is to consult with licensed CPA.

[Suzcos]

I live in MA and got one too. Got paid about $3200 thru PayPal. For me, this was all stuff I had around the house - the equivalent to an online yard sale. So no need for me to worry. I’d love to have a place where PayPal would tally all THEIR fees along with eBay shipping costs and monthly eBay fees (mine all go thru PayPal).