Over the last 18 months, we’ve been updating you about a change to federal tax reporting legislation that will impact sellers on all online marketplaces, including eBay, in 2023. As a result of the change, if a seller has more than $600 in sales in 2022, eBay will be obligated to issue a Form 1099-K to the seller and report their sales to the IRS—even if no tax is owed.
If your sales are over the $600 threshold you won’t necessarily owe income taxes on those sales. Only sales on goods that generate a profit are considered taxable—you generally won’t owe taxes on items you sell for less than what you paid for them. Nevertheless, the new federal tax reporting legislation still requires those sales to be reported which we believe places an undue burden on our sellers.
How you can help change the reporting threshold
You’re invited to make your voice heard in Congress before the new law takes effect. We’re hosting a grassroots campaign on eBay Main Street, our global action network, where you can ask your senators and representatives to raise the reporting threshold above $600.
It only takes a couple minutes to make your voice heard. Together, we can make a difference.
For more information, check out our previous community post and visit our 1099-K FAQ page.
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