As we dive into 2015, many of you are starting to prepare your 2014 finances in advance of tax season. For those of you in the United States who receive a 1099 form from eBay, we’ve rounded up some information to help answer any questions you may have about the process. Important reminders
- Please review the accuracy of your W9 Information for 1099-MISC tax forms for 2014. For more information on this, please click here.
- You will receive a 1099 tax form for 2014 from eBay Partner Network if you are a United States citizen or legal resident and you had $600 in reportable tax activity in 2014.
- ePN will send 1099 forms ONLY to the ePN account holder listed on each account as of December 31, 2014.
- ePN 1099-MISC forms will be postmarked via the US Postal Service no later than January 31, 2015. Please allow time for delivery.
- 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
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 2014: (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 click here.
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 this.
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. Employers provide form W-2 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 that 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 payer provides the form 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 2014 will be mailed by January 31, 2015. Please allow for normal delivery time. If you have not received your 1099-MISC form by February 7, 2015, contact us at: ePNfirstname.lastname@example.org 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 email us with details at: ePNemail@example.com.
Which payments are included on Form 1099-MISC?
The 2014 Form 1099-MISC includes all amounts paid by ePN during the 2014 tax year (i.e., all payments with issue dates from January 1, 2014, through December 31, 2014), regardless of the month when the amounts were earned. Any payments issued after January 1, 2015 pertaining to your ePN earnings from the month of December 2014 will be included in your 2015 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: ePNfirstname.lastname@example.org with any address change, or log into 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, 2014 will not be reflected on the 2014 Form 1099-MISC.
Where can I find additional information?
The information above comes from the IRS website: www.irs.gov, and additional details can be found on their website.