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• tax man
• 2022/02/01 (Tue) 17:58
• Report

Please
refer to the following answers to your questions regarding web shopping sites.

Basically, the standard amount for a 1099 － K to take effect is ＄ 20 ， 000 ． 00 or more.
Please see the attached IRS explanation below.

The IRS requires each payment settlement entity to send you a Form 1099-K by January 31 if it has processed at least $ 20,000 worth of But you still could receive 1099-Ks from some PSEs even when the form isn't

In addition, ＄ 600 is the base amount for a 1099 － NEC to take effect.
See below.
If your business paid a contractor more than $ 600 in a tax year, you're required to file Form 1099-NEC.
However, if the independent However, if the independent contractor is registered as a C corporation or S corporation, a 1099-NEC will not be required.

If you are a web-based seller, you will need to report your sales and costs, as well as the expnses related to the operation of your site

when you file your taxes. Please use Excel or accounting software to manage your revenues and costs
.

For Etsy, you can log in to the site and download
a summary of your sales.

1099 － The K form is an IRS form that you use to report
your sales to the IRS for filing
.
If the actual sales amount and the reported amount match, there is no problem.

An internet site operator who, without knowing it, had not
reported any web sales, received a letter from the IRS requiring him to file a return and last year
asked him to prepare tax returns for the past three years. I had to pay a substantial late （ fine ）
.

• shell
• 2022/02/01 (Tue) 21:53
• Report

Hello.

For online buying and selling on Etsy, eBay, etc., $ 1099-K was issued for 20000+ sales or 200+ sales until last year, but this year it has changed to $ 600+ sales (without sales frequency setting), a much lower amount

I wasn't sure if I should post a direct link, so the following is an excerpt from eBay.

[Changes to the IRS minimum reporting threshold in 2022]
The IRS is lowering the Form 1099-K reporting threshold. January 1, 2022, IRS regulations require all businesses that process payments, including online marketplaces like eBay, to issue a Form 1099-K to sellers who receive $ If you receive more than $ 600 in gross payouts over the course of the 2022 calendar year, If you receive more than 600 in gross payouts over the course of the 2022 calendar year, we'll provide a Form 1099-K to you by January 31, 2023. Your 2021 tax obligations aren't affected by this change.

• tax man
• 2022/02/01 (Tue) 22:30
• Report

＞ For online sales on Etsy, eBay, etc., up until last year $ a 1099-K was issued for over 20000 sales or 200 sales
＞ but starting this year $ over 600 sales (no sales frequency setting) ＞ and the amount has been changed to a much lower amount.

Again, back to the basic question on this topic.
＞ If a 1099 is not issued, when I ask Accounting Service for a Tax return, do I just tell them the sales
＞ amount and expenses, etc.?

The fact that the 1099 － K form is effective has nothing to do with your basic question about the tax return
issue.

1099 － There is no requirement to file a tax return because the K is effective or
not effective.

Etsy sales of ＄ 6000 have nothing to do with whether the form was
effective or not.

Whether you have ＄ or not, your income return is still
6000, so anyway, the basic principle is that there should be no
difference between the amount of the tax return and the fact that the form was effective. Please understand.

The return is filed on a 1040 Schedule C. The software asks
did you receive a 1099 － K ？ and if you answer
that you did not receive a 1099 then it will say you received a cash or check payment . Did you receive payment by cash or check ？
?

Basically, the basic
question is how you received the income, and whether you received it on a 1099 － K or in cash makes no difference to your return or
the amount paid. I hope all
filers understand that it is not whether the form is in effect or not
but how much income you received as income that is the basis of your return.

• Coral
• 2022/02/01 (Tue) 23:29
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Dear tax man
Thank you for your detailed and clear explanation.
I am relieved to hear that there is no problem as long as the actual sales amount and the declared amount match.
I understand that there was a case where I had to pay a considerable penalty for forgetting to file a tax return. In my case, the amount of sales is small, but I would like to continue to sell my products this year, so I will file my tax return so that there will be no mistake.
Thank you very much.

Mr. shell
Hello.
Thank you for the information ！
I understand that a 1099 － K will be issued for sales this year over ＄ 600 when filing next year.
＄ 20000 to ＄ 600 is quite a change.

• Coral
• 2022/02/01 (Tue) 23:55
• Report

Dear tax man
Thank you for your additional comments.
1099 － I understand that you are reporting the exact amount of sales whether or not a K is issued.