Paypal Reporting Income to IRS with 1099-K. eBay Sales Over $20,000 AND Sold Over 200 Items

I would set up a new account for him with all of his information, both eBay and PayPal. Much easier to deal with since if you used your own account you would have to calculate fee's, shipping cost, and the possibility of returns and or chargebacks (rare but they do happen).

When will I receive the 1099 form from ebay/PayPal if in case I was eligible for that? Thanks

A little late to the conversation but I wanted to add my experience. I made just under 200 transactions on eBay and about $14,000 in sales. Thought I was in the clear. I have a separate Paypal account I use for payment on consulting work I do for other businesses. Between the 2 accounts I went over 200 and 20K. I received two separate 1099's. So in short, it's not only sales that count towards your total, it's any payment, gift, Mass Pay, or any other type of transaction handled via Paypal and having separate accounts with the same social does not help.

Yes and they dont count refunds or anything. I sold over $400k this year so im getting hit hard this tax year. FYI, if you have 2 paypal accounts and put in your SSN at both of them, that will combine them also.

EDIT: Didnt see your note there at the end for SSN. The idea would be to not enter your social on the 2nd account.

Going to try and set up an account right now with no social.

Thank You

In order to get fully verified and no limits. You need a credit card attached as well as a bank account. Both of which have to be different from your original account.

Yes and they dont count refunds or anything. I sold over $400k this year so im getting hit hard this tax year. FYI, if you have 2 paypal accounts and put in your SSN at both of them, that will combine them also.

EDIT: Didnt see your note there at the end for SSN. The idea would be to not enter your social on the 2nd account.

So you have to have an EIN to show you truly have a business account and a personal account, otherwise, even more work to how much of that 400K is profit. What a PAIN, but good to know. I always thought that two separate accounts was good enough to separate business and personal funds.

Is it $20k AND 200 transactions

OR

$20k OR 200 transactions.

$20k AND 200 transactions