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US 1099-K Federal Tax Reporting Burdens on Casual Sellers

At a Glance

eBay believes millions of Americans casually selling things online shouldn’t receive unnecessary, invasive, and confusing tax forms for small-time transactions.

Do you occasionally sell things from your garage or closet on eBay? Starting in 2022, the IRS wants to put those transactions under a microscope. Previously, only major sellers (completing hundreds of transactions totaling tens of thousands of dollars) would have their transactions automatically reported. 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. The change is part of a provision added to Section 9674 of the American Rescue Plan (H.R. 1319).

eBay believes that dropping the minimum threshold to $600 for issuing a 1099-K will cause confusion, over-reporting of non-taxable income, and privacy concerns for millions of Americans already struggling as a result of the pandemic.

I am retired and Social Security does not meet all our expenses. eBay sales helps 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.

– Scott T., Nevada

Congress should protect consumers and increase the reporting threshold for platforms enabling consumer sales of goods in the budget reconciliation package.

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Issue in Detail