At a Glance
eBay believes millions of Americans casually selling things online shouldn’t receive unnecessary and confusing tax forms for small-time transactions.
Do you occasionally sell things from your garage or closet on eBay? If so, those transactions may soon be put under a microscope by the IRS. Previously, only major sellers (completing hundreds of transactions totaling tens of thousands of dollars) would have their transactions automatically reported to the IRS. Now, even a single sale over $600 – the new reporting threshold – could land you with a burdensome 1099-K tax form. And the change does not take into account the millions of individuals selling used or pre-owned items where there is no taxable event.
eBay believes that dropping the minimum threshold to $600 for issuing a 1099-K will cause confusion and over-reporting of non-taxable income for millions of Americans.
I am retired and Social Security does not meet all our expenses. eBay sales help make up the difference to pay my bills. I am a casual seller; I should not be taxed like a business. I cannot afford to stop selling because without these sales I would struggle financially.
Congress should protect consumers and increase the reporting threshold for platforms enabling consumer sales of goods.