Canadian threshold for reporting income

[lotzofuniquegoodies]

This just popped up on the US announcement feed from middle of August 2025 regarding change to US thresholds for gig type sellers. 

1099-K threshold reverts to prior level

We’re excited to share that the Form 1099-K reporting threshold has been restored to its prior level of $20,000 and 200 transactions, effective now. 

What does this mean for you?

Fewer sellers will be subject to 1099-K reporting, reducing confusion and the hassle of unnecessary paperwork in the future. 

You’ll only receive a Form 1099-K for 2025 if you meet any of the following criteria:

• You exceed $20,000 in gross sales and 200 transactions
• You have federal and/or state backup withholding applied in 2025 or were subject to withholding in 2025
• You reside in a state that has a lower reporting threshold

Please note that you’re responsible for reporting any taxable income to the IRS. To learn more about Form 1099-K, reporting thresholds, and what it includes, visit our Help page. For any questions about your specific situation, please consult a tax advisor. 

As always, thanks for being part of the eBay community.

Maybe the the Canadian gov could be so nice? Not like any supports the gov is currently providing will help out Joe or Judy seller selling the bare minimum. 

Current Canada limits:

Reporting threshold: Gig work platforms have to report income for all workers who have done 30 or more activities on the platform, and have earned more than $2,800 in a year. Information disclosure: Platforms must provide the workers' personal information to the CRA. Mar 12, 2025

Not sure if anyone else agrees but 30 transactions/$2800 seems a bit low. 

[marnotom!]

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@lotzofuniquegoodies wrote:

Current Canada limits:

Reporting threshold: Gig work platforms have to report income for all workers who have done 30 or more activities on the platform, and have earned more than $2,800 in a year.

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Doesn’t matter what the minimum is for the platform to report the income to CRA, the worker still has to report all of their income themselves.

At least, that's how I understand things, @lotzofuniquegoodies.

[lotzofuniquegoodies]

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@marnotom! wrote:

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@lotzofuniquegoodies wrote:

Current Canada limits:

Reporting threshold: Gig work platforms have to report income for all workers who have done 30 or more activities on the platform, and have earned more than $2,800 in a year.

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Doesn’t matter what the minimum is for the platform to report the income to CRA, the worker still has to report all of their income themselves.

At least, that's how I understand things, @lotzofuniquegoodies.

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As I pointed out previously when this came up, dot com provided com sellers a warning a year in advance. Canadian sellers found out by accident because nothing was officially posted on ca. My only issue is 2800.00 per year (235.00 per month) is almost a petty amount in the scheme of things. Especially when you compare 30 (30 would poof pretty fast for anyone selling sports cards) transactions vs 200. Not like a Canadian seller doing that level is buying a 2nd/3rd/4th home with the proceeds. Next they will be going after anyone that has more than 1 or 2 yardsales per year. Oh right. They were doing that years ago in Manitoba.  (Yardsale police). Current longstanding limit is 2 in a calendar year, not to run longer than 3 days. 

[marnotom!]

There was no reason to “warn” sellers about something they should have been doing since day one. As I’ve mentioned a few times on this board, back in 1999 when my wife and I started selling on eBay, a financial advisor friend of ours advised us that all our eBay income had to be reported on our tax returns.

The reporting limits you’re referring to apply to the platforms, not the sellers using the platforms.

Again, as I understand this, @lotzofuniquegoodies.

[lotzofuniquegoodies]

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@marnotom! wrote:

There was no reason to “warn” sellers about something they should have been doing since day one. As I’ve mentioned a few times on this board, back in 1999 when my wife and I started selling on eBay, a financial advisor friend of ours advised us that all our eBay income had to be reported on our tax returns.

The reporting limits you’re referring to apply to the platforms, not the sellers using the platforms.

Again, as I understand this.

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@marnotom! 

You don't feel a heads up should have been provided to Canadian sellers when they did officially for US sellers? Seems a bit lazy on eBay's part. As I recall from the uproar when it was discovered many ca sellers were caught by complete surprise. IF Canadian sellers would have been advised they could have prepared much easier and had their ducks in a row. As for the K1099 as far as I know eBay Canada doesn't even provide a similar type document. Best we can do is a mickey mouse version crv file. 

[marnotom!]

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@lotzofuniquegoodies wrote:

@marnotom! 

You don't feel a heads up should have been provided to Canadian sellers when they did officially for US sellers? Seems a bit lazy on eBay's part.

My understanding is that eBay informed its users of the CRA reporting requirements for digital platforms at the same time Uber, DoorDash, etc. did and when the media got hold of the story, @lotzofuniquegoodies.

I'm still not sure that you understand that this requirement was applicable to digital platforms, not the users of those platforms. 

[sapphyres-designer-jewellery]

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@marnotom! wrote:

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@lotzofuniquegoodies wrote:

@marnotom! 

You don't feel a heads up should have been provided to Canadian sellers when they did officially for US sellers? Seems a bit lazy on eBay's part.

My understanding is that eBay informed its users of the CRA reporting requirements for digital platforms at the same time Uber, DoorDash, etc. did and when the media got hold of the story, @lotzofuniquegoodies.

I'm still not sure that you understand that this requirement was applicable to digital platforms, not the users of those platforms. 

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BTW, ride share drivers in Canada report their income (I'm going to assume that applies to most of them, based on my inside work for one of those gig platforms).

I'm a lot ticked off about the US limit going back to 20K so that casual sellers who make 19.9 K can undercut my prices because they don't have to pay tax on their profits. Since I pay tax on my profits I have to make sure I charge enough to still make money after I'm done paying 29% taxes on my profit.

In 2024 my profit (after all expenses including use of home) was around $3000 and I remitted $1200 in taxes to CRA on said profit when I filed my return in April.

C.

[lotzofuniquegoodies]

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@marnotom! wrote:

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@lotzofuniquegoodies wrote:

@marnotom! 

You don't feel a heads up should have been provided to Canadian sellers when they did officially for US sellers? Seems a bit lazy on eBay's part.

My understanding is that eBay informed its users of the CRA reporting requirements for digital platforms at the same time Uber, DoorDash, etc. did and when the media got hold of the story, @lotzofuniquegoodies.

I'm still not sure that you understand that this requirement was applicable to digital platforms, not the users of those platforms. 

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@marnotom! 

@sapphyres-designer-jewellery 

I received nada about it from eBay. Same experience from others I have spoken to. I wouldn't have known anything about unless I happened upon the discussion post about it first couple of monthis in 2025.  That user found it in help by pure luck. The announcement on com was end 2023 with updates in Jan of 2024

This was 1 of them. Unsure if they are all still visable.

https://community.ebay.com/t5/Announcements/IRS-announces-another-delay-of-the-600-reporting-thresho...

[marnotom!]

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@sapphyres-designer-jewellery wrote:

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I'm a lot ticked off about the US limit going back to 20K so that casual sellers who make 19.9 K can undercut my prices because they don't have to pay tax on their profits.

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Even if these sellers don't receive 1099-K's, they still have to report the income.

https://www.irs.gov/businesses/what-to-do-with-form-1099-k

The third-party reporting limit has changed, not the income tax-exemption limit. 

[sapphyres-designer-jewellery]

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@marnotom! wrote:

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@sapphyres-designer-jewellery wrote:

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I'm a lot ticked off about the US limit going back to 20K so that casual sellers who make 19.9 K can undercut my prices because they don't have to pay tax on their profits.

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Even if these sellers don't receive 1099-K's, they still have to report the income.

https://www.irs.gov/businesses/what-to-do-with-form-1099-k

The third-party reporting limit has changed, not the income tax-exemption limit. 

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They're supposed to, but based on the posts I see in the dot com forum, many of them definitely are not reporting their income. People are always asking about the 1099K threshold and the regular posters in the forum tell them they're supposed to report all income, even $1.

For a long time in Canada no one was checking up on gig income, but slowly but surely various gig platforms started reporting. I think 30 transactions is pretty low (since it can be that, not just the $2800 minimum). I can run an auction with a bunch of stuff and do more than 30 transactions. The dollar amount though isn't so low if running a business.

I worked for a company that ran a gig platform (ride share/meal delivery type of thing), and everyone there is reporting. There a big disadvantages to not reporting the income (such as not receiving benefits if in a car accident and prevented from doing your job). That's the first question when requesting income replacement benefits is to show tax returns, pay statements from the gig platform, bank statements showing deposits, etc.

C.

[marnotom!]

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@lotzofuniquegoodies wrote:

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@marnotom! 

I received nada about it from eBay. Same experience from others I have spoken to. I wouldn't have known anything about unless I happened upon the discussion post about it first couple of monthis in 2025.  That user found it in help by pure luck.

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@lotzofuniquegoodies, could it be that the Canadian information was semi-buried in an email about a request from eBay.ca and CRA for SINs?

See post 115:

https://community.ebay.ca/t5/Seller-Central/Starting-January-2025-Ebay-Canada-to-require-SIN-number-...

[marnotom!]

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@sapphyres-designer-jewellery wrote:

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@marnotom! wrote:

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@sapphyres-designer-jewellery wrote:

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I'm a lot ticked off about the US limit going back to 20K so that casual sellers who make 19.9 K can undercut my prices because they don't have to pay tax on their profits.

---

Even if these sellers don't receive 1099-K's, they still have to report the income.

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They're supposed to, but based on the posts I see in the dot com forum, many of them definitely are not reporting their income. People are always asking about the 1099K threshold and the regular posters in the forum tell them they're supposed to report all income, even $1.

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Your initial wording was "they don't have to pay tax," though, and that's what I was responding to.  And we've been dealing with the same problem here.  I don't recall if you started hanging out on the Canadian boards at that point or not.  That thread I linked to in my last post to Lotz dates back to the start of this calendar year, so I think you were.

EDITED TO ADD: Just started skimming through that thread and I see your first appearance is on post 28.  😁

[sapphyres-designer-jewellery]

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@marnotom! wrote:

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@sapphyres-designer-jewellery wrote:

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@marnotom! wrote:

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@sapphyres-designer-jewellery wrote:

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I'm a lot ticked off about the US limit going back to 20K so that casual sellers who make 19.9 K can undercut my prices because they don't have to pay tax on their profits.

---

Even if these sellers don't receive 1099-K's, they still have to report the income.

---

They're supposed to, but based on the posts I see in the dot com forum, many of them definitely are not reporting their income. People are always asking about the 1099K threshold and the regular posters in the forum tell them they're supposed to report all income, even $1.

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Your initial wording was "they don't have to pay tax," though, and that's what I was responding to.  And we've been dealing with the same problem here.  I don't recall if you started hanging out on the Canadian boards at that point or not.  That thread I linked to in my last post to Lotz dates back to the start of this calendar year, so I think you were.

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Perhaps I should have said "a lot of them don't pay tax" instead of they don't have to pay tax (because as you said they have to, but they don't).

I showed up in the Canadian boards around the postal strike (came here because of that), so I did read most of that 215 post thread about SIN number.

C.

[xmiketheripper]

So, I was always under the impression that if you sold over $30,000 in Canada, you had to report it, is that threshold STILL if you go over $30,000, it will affect when you do your taxes the following year, and now the only change is the CRA just wants a digital report for their own records if it goes over $2800, but if you're below $30,000, it won't make a difference? or did that $30,000 really go all the way down to $2800..?

I knew these changes were coming into effect Jan 1st, 2025, but that made me think " Okay, so whatever i sell this year will affect next year's tax season - if i go over, annoying, but that's not the end of the world, i haven't sold a lot this year" I just got an e-mail yesterday, November 13th/2025  saying they sent the CRA my sales from 2024 though.... why 2024? Everyone did their taxes in Feb of this year already, and these laws just changed this year, i'm not a store with 10,000 itmes, and 100,000 feedback, on a good year i'll sell 11 items,  my feedback is 282 mixed as a buyer and seller, but I sell collectibles from my personal collection, sometimes new, mostly used items.. and i'm always below $10,000, nevermind $30,000... 

[recped]

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@xmiketheripper wrote:

So, I was always under the impression that if you sold over $30,000 in Canada, you had to report it, is that threshold STILL if you go over $30,000, it will affect when you do your taxes the following year, and now the only change is the CRA just wants a digital report for their own records if it goes over $2800, but if you're below $30,000, it won't make a difference? or did that $30,000 really go all the way down to $2800..?

I knew these changes were coming into effect Jan 1st, 2025, but that made me think " Okay, so whatever i sell this year will affect next year's tax season - if i go over, annoying, but that's not the end of the world, i haven't sold a lot this year" I just got an e-mail yesterday, November 13th/2025  saying they sent the CRA my sales from 2024 though.... why 2024? Everyone did their taxes in Feb of this year already, and these laws just changed this year, i'm not a store with 10,000 itmes, and 100,000 feedback, on a good year i'll sell 11 items,  my feedback is 282 mixed as a buyer and seller, but I sell collectibles from my personal collection, sometimes new, mostly used items.. and i'm always below $10,000, nevermind $30,000... 

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You are confused in regards to the $30,000.

$30,000 in revenue is the level at which you MUST registered for GST/HST, it has absolutely nothing to do with Income Tax.

For Income Tax reporting you must declare EVERY penny on income starting at 1 cent.

The $2800 is the minimum level at which eBay must report your sales to the CRA (previously there was no reporting requirement at all regardless of the amount).

Also be aware that the form that eBay reports and has provided now for tax year 2024 is not a form that you include with your tax return. It is simply an informational document that CRA can use to confirm that your tax return filed in 2024 included all your income.

It's is not the same type of document as a T-4 (employment income) or T-5 (investment income).

[7366carl]

There is no $30,000 limit for income tax. But you are not the only one who thinks that. I hear it over and over. Even from people I have told previously. The confusion is that is the limit to start collectting GST. Nor is there some clause where hobby income doesn't count. I hear that one a lot too.

"In Canada, the $30,000 threshold primarily determines whether a business is required to register for, collect, and remit the Goods and Services Tax (GST) or Harmonized Sales Tax (HST). "

[xmiketheripper]

okay, so i'll request a readjust from the cra and add it now then. thanks for the response! 

[byto253]

And that $30k GST limit came into effect in 1991, so would be about $71k today.    So glad the feds (any party) are so behind small businesses.

[7366carl]

Before you contact CRA. Do you own due dillagence! 😉 

[xmiketheripper]

what does that mean? lol ebay already reported it to the CRA and i did my taxes in Feb already,, i don't have a choice, i have to adjust this now, or i'll be penalized, no? i don't know why ebay didn't do this EARLIER this year, why they waited for November is beyond me