Taxes and 1099s

Tax return check As we kick off the new year and begin to make plans for 2014, many of us are turning our attention to a familiar annual ritual: the first quarter tax season. Some of you are already working on your 2013 tax returns or will soon be doing so. For some, that process involves receiving a 1099 form from eBay to incorporate into your returns. To help refresh your understanding of how 1099 forms work, below are a few updates, reminders, and answers to common questions.[1]

  • First, if you haven’t already done so, please review the accuracy of your W9 Information for 1099-MISC tax forms for 2013. For more information on this, please read this post.
  • Also, please note that ePN will be sending 1099 forms only to the ePN account holder listed on each account as of December 31, 2013 (We unfortunately can’t make exceptions to this rule.)
  • ePN 1099-MISC forms will be postmarked via the US Postal Service no later than January 31, 2014.

You can find additional information about 1099-MISC forms below, as well as on the IRS website: http://www.irs.gov/pub/irs-pdf/f1099msc.pdf

When do I receive a 1099 form from eBay Partner Network?

ePN will be mailing out 1099-MISC forms via the US Postal Service no later than January 31, 2014.  Please allow time for delivery.

Which 1099 Form will I receive from eBay Partner Network?

The type of 1099 form you receive from eBay is determined by how you have chosen to be paid.  Publishers paid via the ACH network that received payments of $600 or more will receive Form 1099-MISC from ePN. Publishers paid via PayPal will not receive a Form 1099-MISC. Instead, PayPal will report these payments along with other reportable payments on 1099-K forms. Note that 1099-K forms have different reporting thresholds. PayPal will report payment volume received by US account holders whose payments exceed both of the following levels in 2013: (a) $20,000 in gross payment volume; and (b) 200 separate payments from sales of goods or services. For more information regarding 1099-Ks, please visit: https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

What is Form 1099-MISC?

Form 1099-MISC is a tax document businesses must file to report certain business transactions to the IRS. It is used to report miscellaneous income paid to individuals and companies who have received $600 or more other income payments during a calendar year. For more information, please read: http://www.irs.gov/pub/irs-pdf/f1099msc.pdf

What is reported on Form 1099-MISC?

Form 1099-MISC is used to report payments made in the course of a trade or business to another person or business who is not an employee. The form must be filed when $600 or more in income is paid. The form is provided by the payer (ePN) to both the IRS and the person or business that received the payment.

What is the difference between Form W-2 and Form 1099-MISC?

Employers use Form W-2 to report wages, tips and other compensation paid to employees. Form W-2 is provided by employers to their employees and the Social Security Administration. Form 1099-MISC is used to report payments made in the course of a trade or business to another person or business who is not an employee. The form is required, for example, when payments of $10 or more in gross royalties or $600 or more in rents or other income payments are paid. The form is provided by the payer to the IRS and the person or business that received the payment.

I haven’t received a Form 1099-MISC.  What should I do?

Forms 1099-MISC for 2013 will be mailed by January 31, 2014. Please allow for normal delivery time. If you have not received your 1099-MISC form by February 7, 2014, contact us at: [email protected] to order a duplicate copy.

What happens if I have questions regarding amount, payment details, incorrect Tax ID or name listed on the Form 1099-MISC, or if I believe any of this information is incorrect?

Please contact us at: [email protected].

Which payments are included on Form 1099-MISC?

The 2013 Form 1099-MISC includes all amounts paid by ePN during the 2013 tax year (i.e., all payments with issue dates from January 1, 2013, through December 31, 2013), regardless of the month when the amounts were earned. Any payments issued after January 1, 2014 pertaining to your ePN earnings from the month of December 2013 will be included in your 2014 Form 1099-MISC.

Does an incorrect address on my Form 1099-MISC affect its validity?

An incorrect address does not affect the validity of a Form 1099-MISC. Notify us at: [email protected] of any address change or log in to your ePN account and change the address in your W9 online tax form to ensure prompt delivery of future forms.  Address changes made after December 31, 2013 will not be reflected on the 2013 Form 1099-MISC.

Where can I find additional information?

The information above comes from the IRS website: www.irs.gov. Additional details can be found on their website.

 


[1] Note that this post and content only apply to US Publishers for 2013 US tax activity.