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.
  • Before January 2022, you may have received a Form 1099-K for selling more than $20,000 and 200 transactions, or selling in states with reduced thresholds. A Form 1099-K for the year 2021 will be provided to you by Jan 31, 2022.
  • 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. We’re lobbying Congress on your behalf to raise the $600 threshold. This threshold ignores the fact that income from selling used goods, usually sold at a price below the original price, is rarely taxable. See what we’re doing to help.

Form 1099-K basics

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  • What is a 1099-K?

    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.

  • Why do I need a 1099-K?

    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.

  • When can I expect to receive a 1099-K?

    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 Between Jan 1 and Jan 31, 2022
    2022 Between Jan 1 and Jan 31, 2023
  • Will I have to pay taxes if I receive a 1099-K?

    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.

  • What happens if I have multiple accounts?

    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.

  • Where can I find more information about 1099-K?

    Here are some general IRS FAQs on this topic.

Changes for you in 2022

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  • What is changing for 1099-Ks in 2022?

    In March 2021, Congress passed the American Rescue Plan Act of 2021. As part of this act, the eligibility requirements for receiving a 1099-K changed.

    Before Dec 31, 2021, the IRS required eBay to issue a 1099-K if you received more than $20,000 in gross payments and conducted over 200 transactions. Some states required eBay to issue a 1099-K for sellers between $600 and $2,500 in sales.

    After Jan 1, 2022, the IRS requires that eBay issue you a 1099-K if you sell more than $600 over the course of a calendar year. We’ll provide this form to you in early 2023.

  • When does this 1099-K change happen?

    Changes went into effect starting Jan 1, 2022. The IRS requires eBay to provide you with a 1099-K form if you receive $600 or more in sales during the 2022 tax year. You should take this into account for your tax filings related to your 2022 tax year.

  • Who do these new 1099-K changes affect?

    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.

  • What is the $600 threshold based on?

    The $600 threshold is calculated on your total sales starting Jan 1, 2022. This includes shipping costs. This does not include adjustments for credits, cash equivalents, discount amounts, fees, or refunded amounts.

    In certain states and territories, the IRS requires us to calculate, collect, and remit sales tax for sellers. If your buyer’s delivery address is in these states, your Form 1099-K will not include the sales tax collected and remitted by eBay. For all other states, the sales tax is part of your total sales, and it will be included in your Form 1099-K.

    We encourage you to contact a tax professional if you have any tax questions.

  • Does this 1099-K change only apply to eBay?

    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.

  • What do I need to do for the new 1099-K changes?

    Starting in January 2022, look for emails and alerts from us asking for your full 9-digit SSN or ITIN and instructions to help you understand what actions you’ll need to take.

Your personal information and security

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  • Why do I need to provide my full SSN or ITIN?

    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.

  • How does eBay use my private information?

    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.

  • How does eBay keep my information secure?

    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.

  • Why does eBay need to verify my SSN or ITIN?

    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.

  • How will I know when my SSN or ITIN is verified?

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

  • What if my SSN or ITIN doesn’t pass verification?

    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. Please ensure the entire document is clearly visible with no ripped or crumpled edges. Use a dark background when photographing documents to reduce distortion due to glare.

  • What if I don’t have a SSN? Can I provide an ITIN or apply for a SSN?

    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.

  • I’m a registered business. Do I still need to provide my Taxpayer Identification Number?

    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
  • What happens if I don’t provide my SSN, ITIN or EIN?

    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.

  • Why haven’t other selling platforms asked for my SSN?

    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

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