Representative Chris Pappas (NH-1) and 15 other members of Congress recently sent a letter to House Speaker Nancy Pelosi (CA-12) and House Ways & Means Committee Chairman Richie Neal (MA-01) in support of increasing the tax reporting threshold for goods sold online. Earlier this year, Congress lowered the threshold for issuing a 1099-K tax form in Section 9674 of the American Rescue Plan Act from $20,000 and 600 transactions down to just $600 and a single transaction. At a time when so many Americans are turning to online marketplaces to sell personal items to clean out their homes or just to make ends meet, this new threshold will cause unnecessary confusion and potentially result in over-reporting of non-taxable income.
When you sell a good below the cost you originally paid, there is no profit and therefore no income tax owed. Yet, under the new reporting threshold, even those who owe no taxes will receive 1099-K forms and have their sales reported to the IRS. Receiving a 1099-K for non-taxable events will be confusing for individuals not running a business but casually selling items on online marketplaces. It will also add millions more unnecessary forms for an already overburdened IRS to process.
eBay feels strongly that we need a threshold for consumer sales of goods that makes sense and protects millions of American consumers from over taxation. If you agree and would like to get involved, we have several ways for you to make your voice heard:
- Join our grassroots campaign and tell your federal legislators to protect consumers and increase the reporting threshold. Don’t worry – participation is quick and easy!
- If you sell casually online to supplement your income and would like to share your story with legislators, click here.
eBay would like to thank Representative Pappas and the other 15 Members of Congress listed below for working to protect Americans trying to make ends meet by selling personal goods online.
Letter Signatory List:
Representative Chris Pappas (NH-01)
Representative Al Lawson, Jr. (FL-04)
Representative Ann Kuster (NH-02)
Representative Cynthia Axne (IA-03)
Representative Ted Lieu (CA-33)
Representative Lucy McBath (GA-06)
Representative Haley Stevens (MI-11)
Representative Deborah Ross (NC-02)
Representative Mike Levin (CA-49)
Representative Marc Veasey (TX-33)
Representative Anna Eshoo (CA-18)
Representative Ed Perlmutter (CO-07)
Representative Eric Swalwell (CA-15)
Representative Josh Gottheimer (NJ-5)
Representative Chrissy Houlahan (PA-6)
Representative Kurt Schrader (OR-5)