PayPal 1099-K changes

Discussion in 'Marketplace Discussions' started by markshan, Aug 23, 2021.

  1. What? I sure didn't say anything close to that nonsense. I do not think that people who only make between $600 and $20,000 are rich but they could be since wealth can be inherited and often is. I can't imagine how you jumped to that conclusion.
     
  2. I just spent time managing my listings here and eBay, at the rate my items are selling, I don't think I will reach the $600 threshold with PayPal or eBay next year. I have raised the prices I ask to cover increases in shipping, packaging, and fees charged and my sales have plummeted. I am a long term low volume seller and since I don't collect eBay sales through PayPal it is looking like $600 total for the year may not be reached on either. My only hope is that enough low volume sellers will drop out to avoid having to deal with the new 1099 rules and my volume will increase as a result. Competing with high volume, lower fee sellers who get huge discounts on shipping and selling fees has always been difficult, now it may be a waste of my time.

    Lowering my prices to attract buyers will make selling not worth the effort to me, the net after all costs would be too small. PayPal, eBay, and USPS increases have each been about 20 to 25% this past year. I recently quit a minimum wage part-time job, $11/hr., and I don't think I will net $11/hr. spent selling CDs. I should have quit selling and kept the job. I don't mean making $11/hr. profit after purchase price, I mean net $11 selling ignoring the purchase cost.
     
  3. Does anybody know if eBay will send a 1099 accumulating gross sales, instead of the actual amounts I am paid? Since eBay now deducts the eBay fees and sends net payments only, I think their 1099s should be net amount. With PayPal collections, the gross amount would hit my account and I would pay the eBay fees each month from my account, meaning 1099 totals would be gross receipts.
     
  4. R. Totale

    R. Totale The Voice of Reason

    I suspect it will be gross. There are places on Schedule C to write off fees and taxes.
     
    markshan likes this.
  5. SixthSpeed

    SixthSpeed Active Member

    Location:
    California
    1099s are always on gross sales. Even if you get returns and chargebacks, the original sales count towards the 1099 figures. I agree, 1099s should be the net amount of what you actually received into your pocket.
     
  6. uzn007

    uzn007 Pack Rat

    Location:
    Raleigh, N.C.
    It looks like this is the Paypal corporate website (i.e. information about the company) as opposed to the website for the Paypal app, which is at paypal.com. Just a guess.
     

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