1099

2014 Taxes and 1099s

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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

FAQs

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: ePN-cs-english@ebay.com 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: ePN-cs-english@ebay.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: ePN-cs-english@ebay.com 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.

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: ePN-cs-english@ebay.com 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: ePN-cs-english@ebay.com.

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: ePN-cs-english@ebay.com 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.

The Joys of Tax Season!

PiggyBank March is upon us, and with it comes many things, including March Madness, St. Patrick’s Day, and, depending on where you live, early signs of Spring.  But March is also important for U.S. businesses and individuals as it’s the last full month before U.S. income tax returns are due on April 15.

Consequently, many of you are already working on your 2012 tax returns or will be soon.  For many of you, that means receiving a 1099 form from eBay to incorporate into your returns.  1099 forms are important entries in tax returns since companies use these forms to report to the IRS (and to you) how much money you made in 2012.  Some of you have been asking questions about 1099s, so to help clarify we thought it might be worthwhile to take a moment and share with you some basics about 1099 forms and tax filing responsibilities.

Fact #1:  How you have chosen to receive payment from ePN determines (1) which part of eBay Inc. provides your 1099 form, and (2) the type of 1099 form you receive.  If you’ve chosen to be paid via direct deposit and are above the dollar threshold (more on that below), ePN is responsible for providing you with a 1099-MISC form.  1099-MISC forms for 2012 were mailed to publishers in January of this year.  However, if you are paid via PayPal, and are above the dollar threshold, then PayPal is responsible for providing you with a 1099-K form.  1099-K forms are available for download on www.paypal.com in your Tax Documents area by following these instructions:  1) Log in to your PayPal account 2) from the History tab, select Tax Documents 3) Select the tax year for which you need documentation, and click Submit.

Fact #2:  Your choice of payment method dramatically changes the thresholds that determine whether or not you receive a 1099 form.  If you are paid via direct deposit, ePN must provide a 1099-MISC form if you’ve been paid at least $600 in 2012.  By contrast, if you’re paid via PayPal, an altogether different IRS threshold applies.  The IRS requires companies like PayPal that process credit and debit card transactions to provide 1099-K forms to those who have received at least 200 separate payments equal or greater than $20,000 in value.  Publishers who don’t meet both of these thresholds for 2012 will not be issued a 1099 form.

If you have further questions on this topic, you can still contact the entity that would provide your 1099 forms:  ePN Customer Support (submit a Contact Us form, or email epn-cs-english@ebay.com) or PayPal Customer Support (click on https://www.paypal.com/us/webapps/helpcenter/home/ or call (888) 221-1161).  Additionally, more information about 1099s can be found on the IRS web site, www.irs.gov.

Remember, regardless of whether you receive a 1099 form or not, publishers have a duty to report their correct income to the IRS.  Although we at eBay cannot offer tax advice, we are happy to help explain the reporting rules and smooth the process wherever possible.