1099-k ebay & paypal

The major companies have become forward compliant so they are sending these forms out to everyone whether or not they have to for 2021.  There is no law that says they could not issue one for income under the threshold, just that they must issue ones for above the threshold.  

If you had a profit, even if you do not receive a 1099K, you are still responsible for reporting the income from sales on eBay.  Say you were doing a major clean out of your closet and sold $3,000 worth of items that you paid $10,000 for, then you do not need to report the 1099-K.  

However, if you paid less than the $3,000 the items, you will need to report the items either as a sale of personal property, as a hobby or as business income,  The way you report it will be determined by your intent.  If you had the intention of earning a profit, you will need to report it on Schedule C.  Using the online version of TurboTax, you would need to upgrade to TurboTax Self-Employed and follow the steps to enter your sales.

If you just happened to make a profit on your "yard sale" sale of personal items, then you would report this as sale of personal property. 

You would enter it under the investment section by clicking the following:

• Federal
• Income
• Show More next to Investment Income
• Start next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
• Yes, to did you sell any of these investment in 2021
• Other, then continue and enter your sale of items as well as the cost basis.