I've never gotten one before from Tradesy. I didn't even make much of a profit after all of the Tradesy fees and transfer fees. What do I do? My 1099 is roughly $2000.
TRADESY sent me a 1099
- Thread starter travelgal16
- Start date
TPF may earn a commission from merchant affiliate
links, including eBay, Amazon, and others
You'll have to claim it as income but you can deduct your costs to reduce your tax liability. If you use paypal, you'll get a 1099 from PP too.
May I ask how many items you sold? I wonder what triggered a 1099 since you didn't sell high volume. I thought it was 200 sold items and $20,000 or something like that. Gosh I hope I don't get one I sold some bags that I haven't worn in years and I have no idea what the original costs were!
This is confusing to me. As a general rule, when a business pays a person for services, goods, etc., anything $600 or above requires a 1099 per occurrence. By Tradesy sending you a 1099, does this not imply that they are the one who paid you rather than it actually being individual buyers? I did sell a few things on Tradesy this year, but I don't remember the total. However, I did not receive a 1099. I am certainly not a tax expert, and I would like to assume that Tradesy knows what it's doing, but even their terms and agreements do not mention sending sellers a 1099. You're also not required to send a 1099 for purchases made for personal use. So, obviously I am no help, lol. I do not sell that much anymore, but this is useful information. On the flip side, I wonder why resale sites such as fashionphile, etc., do not have to send a 1099 when they buy your items.
This is why you NEVER, EVER give these online selling platforms or paypal/adyen/fund transfer companies your social security number for any reason. If you already have, maybe time to close up shop and re-open a new profile. If you got the 1099 - so did the IRS and they'll be not only looking for their money - but wondering whether to audit you as a small business!
Not everyone has costs - if you are selling items you already own, you'd need original receipts to show the IRS and if you use a Tradesy label and free priority mail boxes from the USPS - what "costs" can you prove? Plus, you'd have to declare yourself a business and file a schedule C to take those deductions plus pay self-employment taxes (another 6.5%) - if your "business" is a sole proprietorship. When these places send out a 1099 - they really complicate things for "garage sale" sellers.
I never heard that. Profits, maybe but not necessarily sales. I think if you can prove you bought a bag for $1000, and sold it for $800 then you don't owe any taxes - if you have an actual declared business - you'd show a $200 loss which you could deduct from your regular income (presuming you have any). If you sold it for $1200, then you would have to add the $200 to your income AND pay sales tax to the STATE besides. But when you get a 1099 from Tradesy - they make it look like your PROFIT was the $800 or the $1200 - whatever price you got - and I am presuming it is AFTER they took their own commission and paypal took its own fees out.
That is probably why they are sending out 1099 to small time sellers now - they are trying to minimize their own tax liablity.
You have costs in the form of time photographing, writing listings, listing items, ebay fees, paypal fees, ink for printing labels, paper on which labels are printed, tape, tissue, time and goes in traveling to post office, etc.
A good accountant will tell you what to included as your basis and EVERYONE has a basis and overhead to a degree.
If you're selling out of your closet (items you already own), it's highly unlikely after all "costs" are taken into account that you'll owe any extra taxes. Even if you shop yard sales, estate sales, thrifts, etc. for inventory, unless you find many hidden gems (i.e., $10 item that you flip for $1000), you aren't going to make enough to owe much.
Last edited:
MMMM- I don't think so. That isn't really COSTS - that's your TIME but your Time is a service not a tangible, deductible cost. Not unless you have a business and literally pay yourself a weekly salary for performing those duties.Then you can deduct employee salaries but then of course, you have all the other complications that go along with that - again - self employment tax and as an employee - now there is worker's compensation which most states require, even for independent contractors. Those other things - tape, tissue are costs but literally cost about $20 for the year. Dollar stores sells rolls of tape and big sheets of tissues - I like to use ribbons too. All that together - adds up to very nominal deductions. Not worth saving the receipts for.
Just use the schedule C. It is easy. Also, you can use FMV as the basis if you do not have receipts. Honestly, a 1099 is not a big deal. Just claim your expenses and, for most "garage sale" sellers, it will be a wash. Now, bigger sellers may take more effort but, odds are, if you are a big seller, you have been dealing with it all along.
ETA Just an FYI, we are supposed to claim all earned(and some unearned) income. Even criminals are supposed to! I think that is how they got Al Capone, right? lol Anyway, even without a 1099, you are supposed to claim what you made. There is even an "other" line, I believe. I actually knew a young woman who claimed income she did not make, in order to qualify for the max earned income credit. But, it worked. Weird, eh?
Lots of people do not claim what they are supposed to but when there is a 1099 or other form, you need to use it but also deduct anything you are allowed.
ETA Just an FYI, we are supposed to claim all earned(and some unearned) income. Even criminals are supposed to! I think that is how they got Al Capone, right? lol Anyway, even without a 1099, you are supposed to claim what you made. There is even an "other" line, I believe. I actually knew a young woman who claimed income she did not make, in order to qualify for the max earned income credit. But, it worked. Weird, eh?
Lots of people do not claim what they are supposed to but when there is a 1099 or other form, you need to use it but also deduct anything you are allowed.
Last edited:
1099s should be eliminated. They are used inconsistently, are often inaccurate and don't necessarily support any number in your tax return. They are a waste of time and effort for all parties concerned.
Stepping down off my soapbox...for now.
Stepping down off my soapbox...for now.
Well, the 1099 for online sellers is a fairly new thing that the ***** administration came up with. It was supposed to target really big sellers because brick stores complained that online stores not paying sales tax was costing them business. But they figured it was easier to track income and from there estimate whether the online shops were collecting appropriate sales tax. That's why they did it 200/$20,000. They weren't trying to trap people who sale a few things here and there. But the selling platforms and money transfer platforms used it as an excuse to get socials from everyone and require banking info etc that they didn't before require - they can sell that data to miners and others and that info makes their own platforms more valuable. And since most of them don't know what they're doing - they started just sending 1099s to everyone whose info they had - and then they can use that to deduct income and sales from their own portfolio to make use of tax deductions and credits and their own lower profits. The legislation needed to include an exemption prohibiting these people from requiring personnel data like that UNLESS sales hit the $20K/200 item range. And even that is only in ONE year - not like Tradesy does - which is cumulative total for all years.
It's purely impossible to win the sum in a brick-and-mortar casino due to the lack of competition for the client on the market. An online casino, on the other hand, gives all the chances at your disposal. There's a casino on the list where I won $10000 . I won't tell you which one for the obvious reasons.