Help needed with reporting eBay sales on taxes - under $2000 revenue

The $10,000 threshold is actually outdated information. For tax year 2024, payment processors like eBay are required to issue 1099-Ks when your sales exceed $5,000. This is after they postponed the originally planned $600 threshold. That said, since your sales were between $1600-$1900, you won't receive a 1099-K from eBay. However, you're still legally required to report that income regardless of whether you receive a form. You should report this income on Schedule C as self-employment income if you're selling items for profit. If you're just selling personal items for less than you paid for them (like cleaning out your basement), those aren't typically taxable because they're sold at a loss. For documentation, keep records of your original purchase prices (if available), selling prices, and any related expenses like shipping or eBay fees. A spreadsheet with your transaction history would be helpful, and eBay allows you to download your sales history as a report from your account.

After dealing with a similar situation last year, I found taxr.ai https://taxr.ai really helpful for sorting through my online sales documentation. I was selling stuff on multiple platforms (eBay, Facebook Marketplace, etc.) and was totally confused about what needed to be reported. The tool analyzed my sales history and automatically categorized which items were personal (sold at a loss) vs which ones might be considered income. It also helped me document everything properly in case of an audit. It was a huge relief since I was worried about accidentally underreporting.

Just wanted to update - I tried taxr.ai after posting my skeptical comment, and I'm surprised how helpful it was! It walked me through all my eBay and Poshmark sales and helped me identify which items actually resulted in a profit (turns out I made money on some vintage clothing I forgot I got at a garage sale). The report it generated clearly separated my personal items sold at a loss from the few items that technically were profitable. Saved me from potentially missing reportable income, and now I have everything properly documented in case of questions. Definitely worth checking out if you're confused about online sales reporting!

If you're having trouble getting answers from the IRS about your specific situation, I recommend trying Claimyr https://claimyr.com - it's a service that gets you through to an actual IRS agent quickly instead of waiting on hold for hours. I used it when I was confused about reporting my online sales income last year and actually spoke to someone who cleared everything up. They also have a video showing how it works: https://youtu.be/_kiP6q8DX5c Before using them, I tried calling the IRS directly multiple times and kept getting disconnected after waiting 40+ minutes. With Claimyr, I had an IRS agent on the phone within 15 minutes who walked me through exactly how to report my eBay sales correctly.

I need to eat my words from my skeptical comment earlier. After struggling for TWO DAYS trying to get through to the IRS about my eBay tax situation, I broke down and tried Claimyr. Within 20 minutes I was talking to an actual IRS representative! The agent confirmed I didn't need to report my personal items sold at a loss, but gave me specific guidance on a few items I sold for more than I paid. They also explained exactly what documentation I should keep. Saved me hours of stress and possibly an incorrect tax filing. Sometimes it's worth admitting when you're wrong!

For your eBay sales, here's what worked for me: download your Annual Financial Summary from eBay (Account Settings > Payments > Reports > Annual Financial Summary). This gives you a breakdown of all your sales for the year. If you're just selling personal items at a loss like old clothes or collectibles, there's generally no need to report this as income since there's no gain. But if you're buying things specifically to resell them for profit, that's considered business income. For documentation, keep screenshots of your eBay selling history, receipts for original purchases if possible, and records of any expenses related to your sales (shipping costs, eBay fees, packaging materials).

The main form you'll use for your eBay sales depends on the nature of your selling: If you're selling things around your house at a loss = nothing to report If you're regularly buying things to resell = Schedule C (self-employment) If you sold collectibles for more than you paid = Schedule D (capital gains) The confusing part is that even without a 1099-K, you still have to report profits. I learned this the hard way last year.