Ebay and Taxes

hmmmm... paypal says this,

"Will I be affected by the 2011 tax changes if I only meet one of the thresholds?



No. A seller has to exceed both IRS thresholds ($20,000 in gross payment volume and 200 separate payments) in a calendar year before a Form 1099-K is required. We may require that you provide a tax identification number before you reach these thresholds however we will only report your payments if you exceed both thresholds."

so it would appear you have to have over $20,000 gross AND 200 separate payments. I was worried! I would hit the 200 payments, but am faaaaaar from the $20,000 gross. BUT this was for last year and who knows if it will change for this year???

Originally Posted by ScrappinRed

hmmmm... paypal says this,

"Will I be affected by the 2011 tax changes if I only meet one of the thresholds?

No. A seller has to exceed both IRS thresholds ($20,000 in gross payment volume and 200 separate payments) in a calendar year before a Form 1099-K is required. We may require that you provide a tax identification number before you reach these thresholds however we will only report your payments if you exceed both thresholds."

so it would appear you have to have over $20,000 gross AND 200 separate payments. I was worried! I would hit the 200 payments, but am faaaaaar from the $20,000 gross. BUT this was for last year and who knows if it will change for this year???

See, I'm the odd opposite to this. I had close to $40,000 in sales last year, but less than 200 payments. What I've found is that with eBay, you are much better off farming big items than small.