2 min article

eBay and Form 1099-K

You may receive a Form 1099-K from eBay, depending on the totals of your sales and transactions. This is to help you comply with your tax obligations.

Form 1099-K is an IRS form for taxpayers to report applicable payment transactions received within a calendar year. Online marketplaces like eBay are required to issue a 1099-K to US sellers who've received income from online sales over the minimum threshold set by the IRS. We'll provide you with Form 1099-K by January 31 each year if you've received payments above the minimum IRS reporting thresholds in the previous calendar year:
 

IRS minimum reporting thresholds 2021 2022
Gross payments $20,000 $600
Transactions 200 n/a

Changes to the IRS minimum reporting threshold in 2022

If eligible, you'll automatically receive a Form 1099-K in the mail. You can also opt to receive only a downloadable copy in Seller Hub - opens in new window or tab and My eBay instead of receiving a copy by mail. It will show payments received since eBay started managing your payments, and includes the gross amount and number of payment transactions, your name, address, and 9-digit Tax ID. This information will also be reported to the IRS and the correct state tax authority, where applicable.

If PayPal or another authorized payment service also processed any of your eBay payments during the previous calendar year, you should receive a separate form from them, if your transactions met the IRS reporting thresholds outlined above.

Verifying your Tax ID

After you provide your Tax ID, eBay will verify it. If your details can't be verified, you'll need to provide a Form W-9. If this is the case, we'll let you know what you need to do.

Tip
When filing your tax return with the IRS, please ensure that the name on your eBay account is the same name associated with your Tax ID.

Form 1099-K and multiple eBay accounts

If you have multiple eBay accounts associated with the same Tax ID, your thresholds are calculated by combining all payment transactions. If your combined sales exceed the above thresholds, you'll receive a Form 1099-K for each account, even if one or more of the individual accounts do not exceed the IRS reporting thresholds.

For example, you may have two eBay seller accounts associated with the same Tax ID. If you have over 200 sales transactions combined between the two accounts, and received $19,999 in payments on one account and $5 on the other, you'll receive a separate Form 1099-K for each account.

What's included in Form 1099-K

As Form 1099-K is an IRS information return, it includes the gross amount of all reportable payment transactions within a calendar year, based on when funds settle to eBay, not necessarily when funds are received by sellers. This amount does not include any adjustments, for example, credits, discounts, fees, refunds, or any other adjustable amounts. This means that the gross amount on your Form 1099-K may not be the final reportable amount on your tax return. You should consult your tax advisor to determine how best to use the information on your Form 1099-K when filing your personal and/or business income tax return.

If there's an issue with any transaction on your Form 1099-K, you can contact us with the item number and any relevant information about the transaction.

Additionally, Form 1099-K does not include the sales tax when it is automatically collected and remitted by eBay.

1099-K detailed report

To help reconcile the transactions included on your Form 1099-K, you can download a 1099-K detailed report that provides a detailed breakdown of all unadjusted gross payment transactions on your 1099-K form.

Here's how to download your 1099-K detailed report in Seller Hub:

  1. Go to the Payments tab - opens in new window or tab in Seller Hub.
  2. From the menu on the left, select Taxes.
  3. Select 1099-K detailed report.
  4. Select your preferred date range.
  5. Select Create report.

Here's how to download your 1099-K detailed report in My eBay:

  1. Go to Payments - opens in new window or tab in My eBay.
  2. Select the Taxes tab.
  3. Select 1099-K Forms.
  4. Select Request detailed report.

Once your report is available to download, you'll be notified by email.

If you have specific questions about reconciling the amounts on your Form 1099-K, we recommend you speak with a tax professional.

Changes to the IRS minimum reporting threshold in 2022

The IRS is lowering the Form 1099-K reporting threshold. Starting on January 1, 2022, IRS regulations require all businesses that process payments, including online marketplaces like eBay, to issue a Form 1099-K to sellers who receive $600 or more in gross payouts. If you receive $600 or more in gross payouts over the course of the 2022 calendar year, we'll provide a Form 1099-K to you by January 31, 2023. Your 2021 tax obligations aren't affected by this change.

If you haven't already given us your Social Security Number (SSN), Employer Identification Number (EIN), or Individual Tax Identification Number (ITIN), we'll ask you to provide it once you reach $600 in sales. This information is required for all sellers with sales over the threshold amount ($600 for 2022). If you don't provide us with an SSN, EIN, or ITIN, your payouts will be put on hold, and we may deduct backup withholding from future payouts.

At eBay, we'd like to help our sellers have their voices heard about these threshold changes. We're lobbying Congress on your behalf to raise the $600 threshold. Help us stop overtaxation and the avoidable disclosure of private information.

At eBay, we'd like to help our sellers have their voices heard about these threshold changes. We're lobbying Congress on your behalf to raise the $600 threshold. Help us stop overtaxation and the avoidable disclosure of private information. You can share your story - opens in new window or tab about the importance of online selling or send a letter - opens in new window or tab to members of Congress.

For more information, see our frequently asked questions - opens in new window or tab in the Seller Center.

Your Form 1099-K includes the gross amount of all reportable payment transactions and does not include any adjustments, for example, credits, discounts, fees, refunds, or any other adjustable amounts. This means that the gross amount reported on your Form 1099-K may not be the final reportable amount on your tax return. Consult a tax advisor for any questions about your specific situation.

Was this article helpful for you?

Related help topics