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 Replies: 16 / Views: 1,802 |
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Bedrock of the Community
 United States
10470 Posts |
Just got this letter today from my Ohio Senator and am happy to let everyone who sells on ebay that the thresholds of $20,000 income before having to report income for taxes and the 200 minimum for sales has been restored. PLEASE NOTE: This is not a political post so please don't turn it into one! The letter I am copying and pasting will be edited to remove all political names. July 10, 2025 Dear Mr ------------- Thank you for reaching out about your concerns with the 1099-K reporting threshold. Listening to Ohioans is important to me, and your input helps me better represent our state. The 1099-K reporting threshold requires Americans using third-party payments apps, such as Venmo and PayPal, to report transactions over certain thresholds to the Internal Revenue Service (IRS). The American Rescue Plan of 2021 lowered the reporting threshold from $20,000 to $600 and eliminated the minimum transaction requirement of 200. The IRS delayed enactment of these threshold reductions and implemented a $5,000 threshold for calendar year 2024. On July 4, 2025, --------- --------- signed the One Big Beautiful Bill Act (OBBBA) into law. This legislation restores the original threshold of $20,000 and a minimum of 200 transactions. I cast my vote in favor of this important legislation. |
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Bedrock of the Community
United States
19108 Posts |
Effective which tax year--'25, '26, other?
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Bedrock of the Community
 United States
10470 Posts |
"The "One Big Beautiful Bill Act," primarily covers fiscal year 2025 and beyond, with some provisions extending through 2028 and others made permanent." Hopefully that helps your inquiry! I know I quit selling on ebay for the fact it was changed to $600 in 2021, because I'm on Social Security and that would have put me over the limit of income and my SS payment would have been reduced but now I can start up again. |
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Bedrock of the Community
United States
24878 Posts |
Excellent news! I got hammered last year so had not been listing much this year. But cranking it up again!
Inordinately fascinated by bits of metal with strange markings and figures
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Pillar of the Community
United States
613 Posts |
For information purposes only, whether you receive a 1099K or not, it is the tax payers responsibility to report all earned income. The 1099K is an informational document. Without a 1099K do most people report the sales as income, probably not. The "old requirement" for sending 1099Ks was clearly a burden for ebay, Amazon, etc. and concerning for some sellers. Meant for clarification purposes only, nothing more, nothing less. |
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Pillar of the Community
United States
1326 Posts |
In case you didn't know the old threshold has bee restored, per Forbes and other sources: One Big Beautiful Bill Act And Form 1099 "...The old reporting threshold for Form 1099-K (you can read more about that below) is now new again. OBBBA reinstates the $20,000 and 200 transactions thresholds, retroactive to 2022 (or as if the reporting changes American Rescue Plan Act of 2021 had never happened). That means that the $20,000 and 200 transactions thresholds will apply to the tax year 2025. https://www.forbes.com/sites/kellyp...or-business/ |
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Pillar of the Community
Canada
5391 Posts |
Doesn't matter what the requirements are .
It is on an honest taxpayer to report ALL of their
World wide income no matter the source .
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Pillar of the Community
United States
613 Posts |
Pacificoin, that is correct and frequently misunderstood.
The change impacts the responsibilities of the selling platforms to generate the 1099 not the "responsibility" of the tax payer to report income.
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Moderator
United States
187446 Posts |
Quote:
In case you didn't know the old threshold has bee restored, per Forbes and other sources: Merged into existing topic.  |
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Moderator
United States
187446 Posts |
Quote:
It is on an honest taxpayer to report ALL of their World wide income no matter the source . This.  |
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Pillar of the Community
United States
2023 Posts |
This is all fine and dandy for federal taxes, but the states may still have the lower thresholds. California is still looking at $600 next year. -- https://www.ftb.ca.gov/file/persona...ns-1099.htmlQuote:
For tax year 2025, the threshold is $2,500, regardless of the number of transactions.
For tax year 2026 and after, the threshold is $600, regardless of the number of transactions. |
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Moderator
United States
187446 Posts |
Quote:
This is all fine and dandy for federal taxes, but the states may still have the lower thresholds. California is still looking at $600 next year. Good to know.  A good reason to use a tax professional. I do. Not because I sell on ebay, but because I have other income streams that need accounting. Do not get pinched like Capone.  |
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Bedrock of the Community
United States
10470 Posts |
Quote:
California is still looking at $600 next year. Gee, go figure.........I'm shocked!  |
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Pillar of the Community
 United States
8724 Posts |
Very good to know, thank you, Marve! Quote:I know I quit selling on ebay for the fact it was changed to $600 in 2021 I have sold very little since that change back then. -makecents-
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Pillar of the Community
United States
3323 Posts |
So, do we report NET income? For example: I paid $30 for a Morgan dollar and sold for $35 - report $5 income? If not, there will be a lot of double or triple taxation on each item. "Nummi rari mira sunt, si sumptus ferre potes." - Christophorus filius Scotiae
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Moderator
United States
187446 Posts |
Yes. You would report income (the $35) and deduct the expenses ($30 for the coin, plus anything paid for shipping supplies, etc.).
The important thing it to document it properly and keep all the receipts.
Of course, this is my understanding. If you are going to do this "for a living" or liquidation, you should consult a professional.
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Replies: 16 / Views: 1,802 |
Posted 07/10/2025 9:31 pm
