2022 changes to eBay and your 1099-K

Important information about how this change in legislation will impact you

Here’s what you need to know

  • Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales.
  • The new tax reporting requirement will impact your 2022 sales and taxes that you file in 2023—it will not apply to your 2021 sales and taxes that you file in 2022. Throughout 2022, look for updates from us that will help explain what’s changed and what you need to do next.
  • If you haven’t already given us your Social Security number (SSN) or Individual Tax Identification Number (ITIN), we’ll ask you to provide it once you reach $600 in sales.
  • No need to worry— you only pay taxes on profits. You won’t owe any taxes on something you sell for less than what you paid for it. For example, if you bought a bike for $1,000 last year and then sold it on eBay today for $700, that $700 you made would generally not be subject to income tax.
  • While eBay is unable to give tax advice to our sellers, we want to help make dealing with taxes as easy as possible. Our goal is to help all sellers, casual or those selling as a business, with these new requirements.

Form 1099-K thresholds for your 2021 sales

For the tax year 2021, you may have recently received a Form 1099-K for selling more than $20,000 and 200 transactions.

Some states have lower reporting thresholds for 2021. Check with your state’s tax or revenue department to confirm the 1099-K threshold.

Here’s how you can help

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 about the importance of online selling, or send a letter to members of Congress.

Frequently asked questions

Form 1099-K basics

Form 1099-K is a document that taxpayers receive to report income from payment card and third party network transactions. It includes the gross amount of all payment transactions within a calendar year. This gross amount doesn’t include any adjustments for credits, discounts, fees, refunds or other amounts. We’ll send you a 1099-K if you sell $600 or more.

Your sales on online marketplaces like eBay are considered reportable income once they are over a certain amount. Because eBay processes payments for these sales, IRS regulations require us to issue a 1099-K for US sellers who sell $600 or more. When calculating your taxable income for your income tax return, you should consider the amounts shown on your 1099-K.

Starting Jan 1, 2022, a Form 1099-K includes your total sales amount for all your selling transactions for the year, if your total sales are $600 or more. 

Taxes that eBay collects from your buyers are not reported on the Form 1099-K. Also not included are adjustments for:

  • Selling fees paid to eBay
  • Any refunds
  • Sales tax collected by you

The reported amount on your Form 1099-K is different from the sum total of payments you received from eBay (which may include the adjustments listed above).  We encourage you to contact a tax professional if you have any tax questions.

Your Form 1099-K will be available to download in Seller Hub and My eBay by the end of January each year for the previous tax year (see examples below). If you don’t receive it by then, please contact us.

Tax year Form 1099-K availability
2021 By Jan 31, 2022
2022 By Jan 31, 2023

Not necessarily. Just because you receive a 1099-K doesn’t automatically mean that you’ll owe taxes on the amount reported on it. The 1099-K shows your gross receipts, but you are taxed on your net income.

Only goods that are sold for a profit are considered taxable, so you won’t owe any taxes on something you sell for less than what you paid for it. For example, if you bought a bike for $1,000 last year and then sold it on eBay today for $700, that $700 you made would generally not be subject to income tax.

Please consult a tax professional if you have any questions about any tax filing or regulations.

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

Here are some general IRS FAQs on this topic.

Changes for you in 2022

As of Jan 1, 2022, the IRS requires eBay to provide you with a Form 1099-K if you receive $600 or more in sales during the 2022 tax year. Keep this in mind when preparing your tax filings related to the 2022 tax year. We’ll provide this form to you in early 2023. This information will also be reported to the IRS, as required by law. 

Some states have lower reporting thresholds for 2021. It might be a good idea to check with your state's tax or revenue department to confirm the 1099-K threshold for your state.

This legislation affects all sellers whose sales total $600 or more in 2022. Sales in 2021 aren’t affected.

You should expect to receive a 1099-K if your total sales reach $600. There’s no minimum amount of transactions. The law applies to sellers that are US citizens or US residents.

eBay will calculate the reporting threshold only for the payments you received from eBay Payments and we will send you a Form 1099-K if you exceed the 2021 reporting threshold with eBay payments. PayPal will calculate the reporting threshold separately.

No, IRS regulations require all businesses that process payments, including online marketplaces like eBay, to issue a Form 1099-K for all sellers who sell $600 or more.

If you haven’t already given us your 9-digit Social Security number (SSN) or Individual Tax Identification Number (ITIN), we’ll ask you to provide it once you reach $600 in sales. eBay requires this to be compliant with required laws related to 1099-K. If you don’t provide your TIN, your payouts may be put on hold and we may deduct backup withholding from future payouts.

For everything you sell online in 2022, it's helpful to keep a record of your costs, item purchase prices, and any selling related expenses.

In January 2023, eBay will send you a 1099-K form for your 2022 sales. It will include information on your eBay sales in 2022, and you can use it to determine your income from online selling. This information will also be reported to the IRS, as required by law.

Quickbooks is fully integrated with eBay. You can automatically sync your eBay transactions, see breakdown of income, sales tax and fees for each eBay transaction and keep everything organized in one place. Learn more.

Your personal information and security

We’re required by federal law to ask for the full 9-digit SSN or ITIN for each of our primary account holders. The IRS requires this in order to be compliant with the laws related to 1099-K forms. Having accurate information about our customers ensures there are no payout delays.

Our goal is to build and maintain a safe and trustworthy community for our customers. To do this, we need accurate information about our customers, including your ITIN or SSN. Learn more about privacy and security in our Privacy Center.

We’re committed to protecting your personal data with leading edge information privacy and security programs to ensure your data is secure. We also recommend you enable 2-step verification. We’ll give you ongoing visibility into any information we collect and the ability to easily update your preferences at any time. Learn more about our data security in our Security Center.

If you have a seller account, we’ll need your 9-digit SSN or ITIN to make sure your 1099-K is accurate. This helps you avoid any delays when receiving your payouts and for us to comply with tax laws.

Once your SSN or ITIN is verified, you’ll start receiving your payouts again — as long as there are no other pending account issues.

If your information doesn’t pass verification, we’ll let you know through My eBay or Seller Hub. You’ll then be prompted to double check:

  • Your full 9-digit SSN or ITIN was entered correctly.
  • Your name matches your legal name (example: "Mike" vs "Michael") and there are no typos.

If you’re still not passing verification, you can upload a signed Form W-9 instead.

When your information doesn’t pass verification, you have 180 days to provide us with a Form W-9 or enter your information again. If you’re not passing verification and you’ve double checked your information and found nothing wrong, you can still upload a W-9. 

If your information is still not verified after 180 days, we'll begin withholding 24% of your sales as requested by the IRS.

A B-notice is part of the IRS’s Backup Withholding Program. The IRS alerts eBay when a seller’s name and Taxpayer Identification Number (TIN) on their 1099-K do not match what’s in the IRS’s records.

There are two B-notices that eBay sends you. The first is when the IRS first informs us that your TIN is missing or does not match their records.

eBay issues a second B-notice to you after we receive another notice from the IRS within a 3-year period. Under the second B-notice, you'll have to provide validation of your correct legal name and TIN combination in the form of a Social Security card.

eBay sends sellers a B-notice through regular mail. If this information is not corrected, as required by the IRS, sellers will be subject to backup withholding of future payouts.

If you’ve sold goods and services through eBay and reached the $600 threshold, the IRS requires us to send you a Form 1099-K. When your SSN, ITIN or name on your eBay account doesn’t match the IRS’s records, you’ll receive a back-up withholding notice (“B-notice”) through the regular mail. 

eBay sends B-notices to the address on your eBay account. If you haven’t received a B-notice through mail, or if you need to verify and update your information by uploading a Form W-9, you can do so through Seller Hub or My eBay

After you receive a B-notice through the mail, you’ll need to upload a Form W-9. Make sure you upload your W-9 with your corrected TIN and full legal name through Seller Hub or My eBay

For more information, you can read the IRS’s backup withholding guide.

The B-notice is sent to you through regular mail, but you can upload your W-9 digitally through Seller Hub or My eBay. If you’ve submitted your W-9 digitally, there’s no need to submit it through the mail.

The IRS requires us to collect a valid, verified SSN or ITIN if you sell more than $600 on eBay. If you don’t have a SSN it’s acceptable to provide an ITIN. You can find more information about applying for an ITIN from the IRS.

The taxpayer ID number type you choose depends on whether you’re filling out a tax form for personal or business tax purposes.

If you’re paying personal taxes, your federal tax ID number is an SSN or ITIN. When you’re filing a business tax return, you would use an EIN number. It is important that you use the legal name associated with your EIN.

Yes. If you’re selling as a business entity (sole proprietor/single member LLC, corporation/multi member LLC, partnership), you’ll need to provide the following:

  • Individual identification information for beneficial owners, officers, directors, or account managers
  • Legal business name
  • “Doing Business As” (DBA) name (if you have one)
  • SSN, ITIN or Employer Identification Number (EIN)
  • Business address
  • Phone number

Since this information is required for all sellers with sales over a certain amount, if you don’t provide us with a SSN or ITIN, your payouts will be put on hold, your ability to list and sell on eBay may be restricted, and we may deduct backup withholding from future payouts. If this information doesn’t pass verification, your selling experience may be restricted until we verify your details. For more information, contact us.

We can’t speak for other platforms, but the same rules will apply if you sell $600 or more on other sites. This law is an industry-wide rule that applies to all third party settlement organizations and payment processors, including online marketplaces that process payments.

Accessing and using your 1099-K

We’ll provide your 1099-K through Seller Hub and My eBay or you can ask to have it sent to you by regular mail. We’ll make sure we notify you when you’ve reached the $600 threshold.

We can provide you with transaction information but we’re unable to give you tax advice. Please reach out to a tax professional if you have any questions or concerns about any tax filing or regulations.

Yes, the requirements apply to United States citizens selling in other countries.

These 1099-K reporting requirements won’t impact you if you are a non-US citizen and non-US resident selling on eBay. However, you may be required to provide a Form W-8 to eBay in order to claim non-US status.

We realize providing personal information and receiving a tax form is not ideal for casual sellers. The impact of this change will be that millions of Americans cleaning out their garage or selling a few used items to make extra money will now receive a 1099-K tax form. See what we’re doing to help.

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