We wanted to follow up with some additional information about how the new IRS tax reporting laws may affect you in 2022, and to let you know that this change requires us to collect Social Security numbers (SSN) or Individual Tax Identification (ITIN) Numbers from all sellers who sell over a certain threshold.

Starting on January 1, 2022, U.S. tax reporting requirements willrequire all online marketplaces and businesses like eBaywhich process payments, to issue a Form 1099-K to sellers who receive $600 or more in gross payments. Previously, only sellers with 200 or more transactions and at least $20,000 in annual sales received a Form 1099-K. The new requirements may impact the 2022 tax return that you will file in 2023.

What's changing with the new requirement

Starting next month, when your 2022 sales reach $600, you will be asked to provide your full 9-digit Social Security number (SSN) or Individual Tax Identification Number (ITIN) before you can continue to sell on eBay. If you have not previously provided your full 9-digit SSN or ITIN, we'll alert you in your account, and send you an email requesting this information when you reach the sales threshold.

What the IRS does and doesn't tax

You should also know that many sales on eBay aren't taxable, so even if you have $600 or more in sales and we issue you a 1099-K, you won't necessarily be taxed on those sales because in most cases, you wouldn't owe any taxes on something you sold for less than what you paid for it. For example, if you bought a bike for $1,000 last year, and then sold it on eBay today for $700, it's unlikely that you would be subject to income tax because your sale price was less than the price you paid for the item. We encourage you to talk to a tax professional when reviewing your 1099-K to determine whether you have taxable income and how to report amounts listed on your 1099-K.

We'll continue to keep you updated going into 2022. Look for emails and alerts from us that will help explain what's changed, and what you may need to do next. In the meantime, you can learn more in ourFAQ about Form 1099-Kand how they affect you.

Thanks for being part of the eBay community.

The eBay Team

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eBay Inc. published this content on 20 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 December 2021 20:59:05 UTC.