Remember, to get a 1099 form, it’s $20,000 in sales AND 200 transactions. Not OR.

I keep hearing from the most advanced people in the game that they think it’s an “OR” and not an “AN.”  This means whether you are doing GC reselling to Raise, doing FBA on Amazon, selling on Ebay/Paypal, or reselling tickets on Stubhub, you’ll get a 1099 when you’ve made $20K of sales AND have over 200 transactions.  That means you could have sold $20M in 100 transactions and you still won’t get a 1099.  This doesn’t mean you should dodge taxes; you should always file taxes on ALL of your profit.  This is just a reminder that it’s an AND and not an OR.  Even Paypal is smart enough to capitalize the word AND since I’m sure they get asked a lot:

“PayPal is required to report gross payments received for sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year.”

Also remember that it’s based on GROSS payments, so refunds don’t offset that counter, meaning let’s say you sold $22K of stuff on Ebay, but refunded $3K of items.  You will STILL get a 1099.  Same goes for the transaction counter.

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