LeftyBassist.com

Anybody else sell on Reverb? I just downloaded my 1099-k and guess what? It's wrong. They claim I earned $1048.99 in sales. I only made $765. I reached out to them 5 days ago to rectify the problem, and nothing, no response for almost a week now. Funny how you can have an online chat almost immediately with them when you're interested in buying something, but when you have earnings/tax-related questions, you're instructed to e-mail them. Furthermore, if I'm reading the new tax laws correctly, I shouldn't even be getting a 1099-K:

"Third party settlement organizations (TPSOs) – which means (payment apps and online marketplaces – are required to report payments on Form 1099-K when the total amount of payments you receive for goods or services through the platform exceeds: $5,000 in 2024. $2,500 in 2025. $600 in 2026 and after."

I'm not sure how to remedy this. I've already requested they either retract or resubmit a proper 1099-K, but with 4/15 right around the corner, I'm not counting on them doing anything on time. If you sell on Reverb, I suggest you double-check your figures/earnings.

Did you actually profit from the sales? The total amount I received last year in sales is less than what I paid for the stuff, so I wrote it off as "loss from sale of personal property", or whatever the verbiage is, and was not taxed on any of the income from those sales.

If you lost money on those sales, I say don't worry about it and just claim it as a loss.

With all the fees, taxes, shipping costs, etc. I can't remember the last time I profited from sale on Reverb.
Yes, I usually do report it as, "Personal income sold at a loss". I just don't like that companies are filing 1099s with incorrect earnings anyway. The other thing that irks e is they're reporting everything you sell as full earnings rather than actual paid out earnings. How can they claim I earned the full amount when that's an amount you never see due to their fees, shipping costs, and taxes deducted? Especially the taxes. You're already having taxes deducted for the sale, now you're expected to pay tax on the full amount again?! BS

WHOA! I did not realize that. Yeah, there is absolutely no way the fees should be included as revenue. If you offer free shipping, then I can understand that because they have no way to know what you paid for shipping. That would probably require a receipt to show what you paid for shipping and write that off. Under the "Earnings" section, it shows what is actually paid to you. I guess I noticed that my 1099-K wasn't exactly the same total, but it was close enough that I didn't think it worth it to find out the difference.

Thanks for the warning. I will have to keep a look out for that. Let us know what Reverb says when they get back to you.