eBay is an online store where people and companies can buy and sell different goods. You may have noticed that eBay requests your Social Security Number (SSN) if you plan to sell anything there. There are actually good reasons why eBay needs your SSN, despite the fact that it may seem odd and cause some users to worry.
eBay requires your SSN in order to comply with IRS requirements, among other things. eBay is required by law to report your earnings to the IRS if you have more than 200 transactions on the site during a calendar year and make more than $20,000 in sales. eBay wants to confirm your identification and report your revenues to the IRS, which is why it requests your SSN.
You could now be questioning whether the sale of personal items qualifies as revenue. Yes, it is taken into account as income. If you make money through the sale of personal belongings that you no longer need or use, it is taxable income. However, it is not considered income and is not taxable if you sell an item for less than you purchased for it.
eBay charges a fee that is deducted from the final sale price of your item. For the majority of categories in 2021, eBay’s final value charge is 12.35%, with a maximum fee of $750. Additionally, eBay will impose a payment processing fee of 2.7% + $0.25 per transaction if you use their managed payments system.
There are a few steps you may do to get started if you’re a newbie trying to sell on eBay in 2021. Make an eBay account first, then get acquainted with the site. Decide the products you wish to sell, and then find out how much they are worth. Write a thorough description and take excellent images of your items. Set a fair price before putting your stuff up for sale.
Finally, if you meet certain requirements, eBay requires your SSN in order to comply with IRS standards and report your revenues. Selling personal items is seen as income, and eBay charges a fee based on the sale price. In 2021, if you’re a beginner trying to sell on eBay, start by taking the following actions: Make an account, do your homework, take enlightening pictures and write thorough descriptions, then post your thing for sale with a fair price.