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@cumos55 wrote:If a Canadian seller gets an official 1099-k, that seller must contact the US IRS and provide information as to where that seller lives and pays taxes....
Canada..... Canada... Canada.
No you don't, unless you are a US Citizen living in Canada or a Canadian citizen who is a permanent resident of the USA.
By the way, the title of this thread is misleading, no tax forms were sent out, just a generic notice that one could be sent out.
I've exceeded the limits many times in the years since this requirement has been in place (it was part of the Affordable Care Act legislation in 2010), I have never received a 1099. On the other hand I earn a couple of Dollars in interest on my US based bank account and I get a 1099 for that which shows the amount and the withholding tax (usually just pennies). I can use this amount of withheld taxes as a credit on my Canadian Tax return because the US and Canada have a tax treaty which allows that.
Same applies to a brokerage account I have in the US but since the withholding on that is much more substantial I submit a WBEN-8 to the broker which exempts me from the US reporting process. That form needs to be provided annually so I do it for the brokerage account but don't bother for the back account because the amount is tiny.
Another problem with the thread title is the "live in Canada" part because the US requires ALL US citizens to file a US tax return even those who do not live in the US, are dual citizens and never plan to return to the USA.
My SIL is a dual citizen born in Canada, hasn't been a resident of the USA for 20 years but still has to file a US tax return until such time as she revokes her US citizenship.
@selling2u_buying4me wrote:
Has anyone reached out to ebay / paypal for an explanation on this or what Canadian ebayers are expected to do (or not)? I deal with CRA, does that mean we have to start filing tax forms with the IRS now (Canadians who are not US citizens / residents)?
Neither eBay nor PayPal are going to give tax advice to sellers.
Bottom line, if you are a Canadian citizen that permanently resides in Canada and does not operate a business with a nexus in the USA you can totally ignore any 1099K.
@cumos55 wrote:Just checked my Dashboard.
My sales to Canadian buyers and to US buyers are presented in US dollars.
When I first sold on eBay I sold in US dollars on eBay.com.
Then I moved to eBay Canada and continued to sell in US dollars.
Today I sell on eBay Canada in Canadian dollars...
But my record of annual and total sales over many years on eBay is presented in US dollars, as indicated in my Dashboard.
Maybe that is why we as Canadian sellers receive an indication that we might be or will be getting a Form 1099-k.
All irrelevant, selling currency has nothing to do with anything. Listing directly to eBay.com might trigger the generic message from eBay but it would not trigger PayPal to send a 1099 because those are only sent to those who hold a US PayPal account which no Canadians are supposed to have.
Dear brettjet38,
On Thursday, December 19th, we inadvertently sent you an incorrect message. The subject line read, “Information regarding your tax Form 1099-K.” The message was intended for US-based sellers only. Please disregard the message.
We sincerely apologize for the error and any concerns you may have had.
As always, thank you for selling on eBay.
Sincerely,
The eBay Seller Team
As I said originally in my original post on here just another eBay gremlin
"@richardcm @recped @electronicifycanada @triber @rainbow*rob
I also received this directly from eBay, here on the site in my messages. I suspect it was not supposed to be sent to Canadian registered members...
But, it is Legit from eBay.
I also received it in my emails this morning, but only got in in my eBay messages an hour or two ago, just more eBay ..."
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