New $600 IRS Tax Laws for 2022

Thank you for watching out for me! :grin:

Okay, question from a Canadian.

If i sell over $600 on eBay in the year (less than $20,000 or 200 transactions), is eBay going to send anything to me/CRA for 2022 tax season?

I posted on the eBay Canada chat and was told that it was business as usual for Canadians that sell on eBay. eBay has not answered the question.

How are you Canadian sellers looking at these changes to the US reporting rules and do they affect us?

Welcome.

I am neither a tax professional nor Canadian, but I would think if you donā€™t pay taxes in the US it shouldnā€™t affect you(?). Hoping someone with direct knowledge will weigh in.

You have to pay your taxes according to Canadaā€™s tax laws. So no, the US tax laws do not apply to you in Canada. Talk to a tax professional in Canada to get a solid answer to questions.

Iā€™m not looking for tax advice. I am just trying to find out if eBay is going to send anything to the Canadian tax agency in the same way that itā€™s now sending to the IRS for over $600 and under $20,000.

Thanks for all the replies

If youā€™re asking, then yes, you sort of are though. :wink:

Doesnā€™t matter if they send or not, a quick look up of Canadaā€™s laws is, anything you sell to make profit from online sales have to be reported. So youā€™re still on the hook for paying taxes even if they donā€™t send them anything. :smiley:

Will eBay send Canada 1099 or sales info to Canadaā€™s IRS or whatever they call it? Check with eBay to be certain. If you canā€™t find anything online, call them. They wonā€™t send them based on the US $600 and $20k laws we have here, since Iā€™m sure the laws differ in Canada.

Not sure. As a fellow Canuck, the rules I go by are that collectibles are treated as ā€˜personal use propertyā€™. As such, you can sell them like any other used good, but items that sell for over $1K are subject to capital gains tax. In addition, sales over $30K total for the tax year are subject to tax.

Best to look up tax laws for collectibles in Canada.

Will do. Thanks

Having been to Canada I recall that all sales tax is paid in maple syrup. I had to carry a bottle and squirt it into the special maple syrup deposit anytime I owed any extra change.

In the interest of fairness, I shall now make fun of my own country and use this metaphor but replace maple syrup with bullets, because America of course loves its guns. It works either way!

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I just got a 1099 from ebay in the mail and I barely sold over 600 in 2021. Did they make a mistake? or is the 600 dollar rule for 2021? Sorry if this was discussed just alittle surprised.

The $600 automatic 1099 shouldnā€™t go in effect until next year taxes.

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Its weird I not even close to 20K for 2021 and I got a 1099K from ebay. Im calling them but very weird.

I got one too. I mostly cut out ebay as a selling platform and sold mostly on Mercari. I think I did $1200 on ebay for the year. But it was going to report the income anyway.

If ebay jumped the gun, gonna surprise a lot of sellers.

I believe the IRS gets these too, right? So itā€™s not like you can just toss it if they didā€¦

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I just got off the phone with ebay apparently they mistakenly sent out 1099s to California and Illinois users if you sold any amount at all. The rep said they only mailed to the ebay users and not to the IRS. Not sure how valid that part is but just for awareness. If you have question about it I would call ebay as well as Im just letting you know what happened when I called just now.

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Doesnā€™t cover you Anthony

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Yeahā€¦something tells me it was more than just two statesā€¦.

I was wondering If ebay was going to f this upā€¦

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PAY YOUR TAXES PEOPLE ON INCOME! Why is this so hard to swallow? :thinking:

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I live in Maryland so those two states certainly donā€™t cover me.

I think itā€™s more the xtra aggravation that now you have to ā€œmatchā€ whatever ebay sent to the penny. Thatā€™s what Iā€™m not looking forward to next year. Iā€™m not sure if ebay is just going to post just sales or are they subtracting out the taxes THEY collect as well their fees and postage paid through them? Iā€™m assuming they are going to just dump a grand figure of $$$ they collected and weā€™re going to have to break that all out.

Iā€™m not looking forward to extra work to break all that outā€¦but Iā€™m keeping better records starting 1/1/22, for sure. Watching them like a hawk.

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