Why I am being asked to provide my social security #?
I had a handful of transactions in 2021, certainly no where near the 200 that Stubhub states is the threshold for reporting to the IRS. This appears to be a big overreach by Stubhub?
Check your state laws. I know for sure that for Massachusetts and Vermont the threshhold is only $600 in sales vs. the federal requirement of $20,000.
I live in Massachusetts and had one sale well below the $600 threshold. Providing my SSN seems like a problem waiting to happen. What happens if I don't provide it?
What happens next is their servers are hacked and your identity is stolen. There is no way I'm providing this for a single transaction of under $500. I'd rather get a mean letter from the IRS for not reporting what was actually a loss than give up my SSN to a random website.
Hi, @fluke Thank you so much for reaching out and sharing your concerns. Rest assured that we take account safety very seriously and none of your personal financial information is visible on the site or to any of our agents. You'll notice that when you add card or bank information it isn't even stored in plain text on your own account. This is the same for all the agents on our customer service team. Those full details aren't stored in plain text anywhere.
There likely won't be any mean letters from the IRS, but there could possibly be extra charges for back taxes if the proper income isn't reported. We want to help you avoid that. StubHub has been around for over 2 decades and is one of the largest ticket markets in the country, so definitely not a "random website". And again, we take account safety extremely seriously to make sure that everyone who does business on the StubHub site is protected. That said, StubHub won't force you to provide that information, but if you want to continue to do business on StubHub the federal government requires us to have those details in order to pay you.
Thanks again for reaching out and feel free to DM any of our moderators if you have account specific questions. Thanks!
Understand that this "income" needs to be reported, however, there is obviously a cost associated with generating such income. What is the dollar value that will be reported to the federal government? Is it gross sales before fees are paid to Stubhub? Is it net sales paid into sellers' account? Or is it estimated net income after cost of goods sold is considered?
@nyhiggs22 The 1099K reports Gross Sales. It is up to the seller to keep track of Gross Sales, Seller Fees, and Cost Of Goods Sold (face value of tickets) to calculate the net income that has to be reported. If you don't know how to report Stubhub income on your taxes then I can't give you tax advice so you will have to research it out or consult a tax preparer.