Comments on: PayPal and Ebay Must Report to the IRS

By: NIcole

NIcole — Thu, 12 Nov 2009 06:36:27 +0000

If you are a corporation buying from ebay, do you have to file a 1099 on each vendor? If you don’t will you get penalized? Is there an amount that you can do wih out submitting the 1099?

By: John Gro

John Gro — Mon, 02 Nov 2009 04:50:55 +0000

Yep! Ebay and PayPal are now “in bed” with the IRS.

They probably get a break on their Corporate Taxes for being an “agent” for the IRS Collection activities. In my opinion, it will be their downfall – THE’LL NEED A BAILOUT SOON!

John

By: Johnson

Johnson — Mon, 19 Oct 2009 20:03:57 +0000

Does anyone know if Paypal report my earnings to the Canadian Tax Agency or just the IRS. I make under $10,000 with Paypal? I just use it as a way to collect donations, and fees for advertising on mw websites.

Thanks,

By: Tim

Tim — Mon, 23 Mar 2009 02:05:24 +0000

What if I don’t have a ebay store setup or a merchants account setup with payapl and I make $10,000 or more from ebay just from listing items. Is it reported then and if so how. I don’t recall puting in my SSN.

By: Kristine

Kristine — Tue, 27 Jan 2009 15:09:03 +0000

Alan – assuming that you are a sole proprietor (you have not incorporated, or are not a partnership), then yes, you report your income from your eBay store on Schedule C, which is attached to your personal tax return (Form 1040). The fact that you have a business license or Tax ID does not change how you file your taxes, but if you have incorporated or formed a partnership then you would need to file the appropriate business tax returns for those entities. Hope this helps.

By: alan

alan — Mon, 26 Jan 2009 16:44:27 +0000

According to the above response, if you have a Ebay store, you would file on your personal taxes using Schedule C. Would this alos be the case if you have a business license, tax i.d. and Ebay store (with the Ebay store the only way your selling merchandise)?

By: Kristine

Kristine — Sat, 01 Nov 2008 13:24:06 +0000

Good question Robyns – People who are just cleaning out their garage will probably not receive a 1099. If you are a business owner and you also sell items from around the house, just keep good records. This new rule is really meant to track the big players… those who are earning a lot from eBay and online businesses.

By: robyns

robyns — Sat, 01 Nov 2008 12:50:59 +0000

how does this affect people that aren’t in business that just sell off old stuff from their house or cheap garage store stuff?

By: Kristine

Kristine — Mon, 22 Sep 2008 20:24:51 +0000

Conie – thanks for the comment. Not a stupid question at all!

If you have incorporated your business, then you must file a separate tax return in addition to your personal tax return.

If you have not incorporated, then you are a sole proprietor for tax purposes, and you file Schedule C – Profit or Loss from Business to report your eBay income, and you attach this to your personal income tax return (Form 1040).

Hope this answers your question! Kristine

By: Conie

Conie — Sat, 20 Sep 2008 21:18:07 +0000

I hope this isn’t a stupid question.. If you have an ebay store and your filing taxes, would you include your ebay earnings on your filing married jointly return. Or would you file your business seperately?
Thanks