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ITNEVERENDS
New User
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1099 and SSN

I just got this email. They now want me to PAY MORE INCOME TAXES on my ALREADY TAXED INCOME which I used to buy my tickerts,. IRS FORM 1099 will require me to report my ticket sales AS INCOME. I ALREADY paid all Local, State and Federal taxes on the money I used to buy my tickets. Now I will be forced to pay ALL of those taxes a SECOND TIME... I don't think so.....

 

 
Based on your previous sales history, you are likely to reach the new $600 threshold in 2022. We encourage you to prepare for your future sales by inputting your TIN as soon as possible into your StubHub Account. To enter your TIN:
Beginning January 1, 2022, sellers who reach the $600 threshold and do not have TIN information on file will receive an email alerting them to update their information. Payment will be withheld from sellers until TIN information is provided.
If you meet these reporting requirements, we’ll generate a 1099 and send it to you via U.S. Mail at the beginning of each year. The same information will be sent to the IRS and state tax agencies where applicable (e.g., Massachusetts, Vermont)..
 
21 REPLIES 21
AGR
Waterboy
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Re: 1099 and SSN

I'm trying to figure out the fine print of these details. We will be talking to a CPA to confirm, but I'm curious if anyone knows the answers in the meantime.

 

The Help Center link says:

 

IRS regulations require all businesses that process payments file a 1099-K for all sellers with more than 200 paid transactions and $20,000 in gross sales in a calendar year.

 

Massachusetts and Vermont now require a 1099-K for sellers with at least $600 in gross sales in a calendar year...

  1. Are Massachusetts and Vermont the only ones that require reporting over $600?
  2. If I'm not in those states, and I don't go over $20,000, do I still have to fill out the forms to get paid?
  3. If all of my tickets were sold in 2020, but StubHub won't pay me until Jan 2021 after the game, is that part of 2020 taxes or 2021 taxes? This is the weird gray area for me because I don't own the tickets anymore. They were sold in 2020. StubHub is just holding the money.
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Drdrew
New User
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Re: 1099 and SSN

I have read the information also .. after $600 you must report “income” to the IRS.. stubhub is not being helpful telling you this is the gross… when in reality , for example you may have originally paid the tickets for $200 , decided to sell them for $250 , which case then stubhub takes their greedy 15% so your NET sale is $213( $250-15%) .. not to mention your original purchase was $200, so your profit was $13 which is to be reported to the IRS which is taxed . In most cases like myself , I tend to lose money on my season tickets as a whole when I use stubhub , so this will have little to no effect on your overall taxes… I’m not an accountant but if you add in the fees plus purchase price of the tickets your tax will be minimal and usually should be reported as a loss , just remember to report this to your accountant or compute when doing taxes
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Melpik
Legend
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Re: 1099 and SSN

This is similar to receiving a 1099 from a brokerage firm for stocks sold during the year.  Only the gross amount is reported by Stubhub.  When you file your taxes you can inut the cost of the tickets sold and then any taxes owed or any refund is based on your overall gain or loss from the sale of the tickets.

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GaPeach22
Waterboy
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Re: 1099 and SSN

Is this a state new rule and I do not live in the 2 mentioned , how can they hold back funds and require the ssn information ?

 

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TeamStubHub
Moderator
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Re: 1099 and SSN

@GaPeach22 If you've met the threshold for the 1099 requirement, you will; need to enter the information requested in order to receive payment. This isn't a StubHub policy, this is a new tax regulation and not something that we here at StubHub have any control over. If you are being asked for the information, then you will need to provide the details otherwise, we're not going to be able to pay out until that's done. Sorry for any confusion on that. Please feel free to send a private message to one of our moderators if you have any further questions, though we would suggest reaching out to a tax professional if you have tax-specific questions, since we're not able to provide tax advice here. 

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Tlm6382
Team Mascot
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Re: 1099 and SSN

When it says 200 sales, is that total sales or payments? IE: I sell 4 tickets together is that 4 sales or one sale?

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justabill314
Stagehand
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Re: 1099 and SSN

The moderators "answer" is incomplete.

 

1.  Why is the threshold $600 when IRS regulations are $20,000?   As others stated in the thread $600 only seems to apply to a few states.

 

2.   You say we have no control over this.   Not true.   We live in a democracy and the people ultimately have control over any government law or regulation.   Why didn't stubhub contact users to ask us to contact our elected representatives to oppose this measure?

 

3.   Do ebay, seatgeek, similar websites have the same requirement?

 

4.   What steps do you take to protect the privacy of our SSN?

 

5.  I just got blocked from sales today despite not having made a single sale this year.    Even if the threshold is $600 (and that's debatable) I should still be allowed to sell up to $600 before the requirement goes in.   It doesn't make any sense that I'm already blocked.

 

Thank you

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justabill314
Stagehand
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Re: 1099 and SSN

Actually it does appear that ebay has a similar policy

 

https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html

 

Here’s what you need to know

 

  • Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales.
  • The new tax reporting requirement will impact your 2022 sales and taxes that you file in 2023—it will not apply to your 2021 sales and taxes that you file in 2022. Throughout 2022, look for updates from us that will help explain what’s changed and what you need to do next.
  • If you haven’t already given us your Social Security number (SSN) or Individual Tax Identification Number (ITIN), we’ll ask you to provide it once you reach $600 in sales.
  • Before January 2022, you may have received a Form 1099-K for selling more than $20,000 and 200 transactions, or selling in states with reduced thresholds. A Form 1099-K for the year 2021 will be provided to you by Jan 31, 2022.
  • No need to worry— you only pay taxes on profits. You won’t owe any taxes on something you sell for less than what you paid for it. For example, if you bought a bike for $1,000 last year, and then sold it on eBay today for $700, that $700 you made would generally not be subject to income tax.
  • While eBay is unable to give tax advice to our sellers, we want to help make dealing with taxes as easy as possible. Our goal is to help you with these new requirements. We are lobbying Congress on your behalf to raise the $600 threshold. It’s a threshold that ignores the fact that income from selling used goods, usually sold at a price below the original price, is rarely taxable.
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mike33
Stagehand
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Re: 1099 and SSN

Here are the answers:

 

1 - This was shoehorned in with the last stimulus payment.

2 - I agree and encourage people to do this.  Unlikely to make any real difference.  Almost certainly will not for 2022.

3 - Yes - any payment processing does.  Includes Paypal, venmo, vivid seats, seat geek, ebay, you name it.

4 - Nothing spectacular.  It will be stored on a server same as anywhere else.

5 - I got this email also.  It was especially terrible of stubhub that the sales I have left are back from Jan of 2020.  I was not able to deliver then becase of delivery delays, but could for all of last year.  Stubhub refused to allow me to deliver.  You may have made sales in previous years and just not delivered as of yet so those will count for 2022.

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