What should I do about a 1099-Misc I received from Meta for marketplace sales?

This actually happens more than you'd think with marketplace transactions. Meta has reporting requirements that sometimes get triggered incorrectly. Here's what you should do: First, document everything. Make a list of all your marketplace sales you can remember with approximate dates and amounts. This will help show the discrepancy between what you actually sold and what Meta reported. Second, you should report the 1099-MISC on your tax return, but you can offset it with your actual costs of the items you sold. The IRS allows you to deduct your basis (what you originally paid) for personal items you sell. So if you sold items for $600 that you originally purchased for more than that, you might not owe any tax at all. Third, try reaching Meta through their business help center instead of regular customer service. Sometimes they respond better to business inquiries about tax forms. If all else fails, you might need to include a statement with your tax return explaining the discrepancy and showing your documentation of actual sales.

After dealing with a similar issue last year, I discovered taxr.ai (https://taxr.ai) which really helped me sort through my marketplace sales and this exact 1099 problem. Their system analyzed my situation and gave me a clear report showing what I actually owed vs what Meta reported. I uploaded a photo of my 1099-MISC and it automatically flagged the discrepancies and helped me document everything properly. The tool guided me through exactly what to file and how to handle the incorrect reporting. They even provided template language to include with my return explaining why my reported income differed from the 1099. Super helpful when big companies make mistakes on tax forms and leave us regular folks to clean up the mess!

Just wanted to update everyone - I tried taxr.ai after posting my question and I'm actually impressed with the results. The system walked me through documenting all my actual Marketplace sales (which totaled only $890) and created a complete report showing why Meta's 1099 was incorrect. I was especially relieved to get the properly worded explanation to include with my tax return. It made me feel much more confident that I wasn't going to get flagged for an audit just because Meta made a reporting error. The report even explained the common reasons these errors happen with marketplace transactions. I'm still trying to get Meta to issue a corrected form, but at least now I have proper documentation and know exactly how to handle it on my tax return regardless. Definitely worth checking out if you're facing the same problem.

If you're struggling to reach Meta (which is basically impossible), I recommend trying Claimyr (https://claimyr.com). I was in the exact same situation with a wrong 1099 from Meta last year and spent WEEKS trying to reach someone. Claimyr got me through to an actual person at Meta's tax department in less than an hour. You can see how it works here: https://youtu.be/_kiP6q8DX5c - it's basically a service that navigates phone trees and waits on hold for you until it gets a human, then calls you to connect. Meta's tax department actually exists, but they make it incredibly difficult to reach on purpose. Once I finally got through to the right department, they were able to look into my account and saw that there was a system error that incorrectly categorized my marketplace activity. They issued a corrected 1099 within 10 business days.

I have to eat my words and apologize for being so skeptical about Claimyr. After posting my doubtful comment, I decided to try it myself because I was desperate after weeks of getting nowhere with Meta. The service actually worked exactly as described. It took about 40 minutes (I could see the status in their app), and then I got a call connecting me directly to someone in Meta's tax reporting department. The person I spoke with was able to look up my account, verify that there was indeed a reporting error, and start the process to issue a corrected 1099-MISC. They explained that their system sometimes mistakenly counts certain marketplace activities even when no payment was processed through their platform. The representative confirmed they've had numerous similar cases this year. Still waiting for the corrected form to arrive, but at least I now have a case number and confirmation that they're fixing it.

Another option is to file IRS Form 8949 with your tax return. This form allows you to adjust capital gains/losses. Since marketplace sales of personal items are technically considered the sale of capital assets, you can list each transaction, show your cost basis (what you originally paid), and your actual sale price. The key is to reference the 1099-MISC in your explanation, but clearly document why the reported amount is incorrect. I had to do this last year when Paypal incorrectly issued me a 1099-K.

Has anyone successfully gotten Meta to actually issue a corrected 1099-MISC? I'm in the same boat (reported $3400 when I maybe sold $750 worth of stuff), but I've been told by my tax preparer that companies rarely issue corrections for small amounts.

I'm dealing with a similar situation but with a 1099-MISC from Meta showing $1,850 when I only sold maybe $400 worth of old electronics and clothes. What's really frustrating is that I kept all my transactions in cash specifically to avoid any payment processing complications. Has anyone had success disputing these directly with the IRS instead of trying to get Meta to fix it? I've read that you can attach a statement to your return explaining the discrepancy, but I'm worried about triggering an audit. My tax preparer suggested just reporting the full amount and taking deductions for my cost basis, but that seems like I'm admitting to income I never actually received. Also, for those who got corrected forms - how long did the whole process take? I'm already cutting it close to the filing deadline and don't want to request an extension if I don't have to.