Yes, in the U.S., you generally must provide your Social Security Number (SSN) or Employer Identification Number (EIN) to eBay to receive payouts, verify your identity, and comply with IRS tax reporting rules, especially if you exceed a certain sales threshold (like $600) or sell as a business. Without it, your payouts can be held, and your selling privileges might be restricted or suspended, as eBay must report income to the IRS.
Final Words on Why Does eBay Need My SSN
All sellers on any platform must provide their tax and social security numbers to ensure tax and federal compliance. If eBay and online selling is your primary income source, you need not think twice about complying with these regulations.
Your Form 1099-K will show payments received for sales on eBay. It will include the gross amount and number of transactions, your name, address, and tax ID. Forms 1099-K will also be reported to the IRS and the correct state tax authority, where applicable.
As an eBay seller, you'll receive your payouts in your linked bank account. Verifying your details helps you avoid any delays in receiving your payouts. We'll verify your details when you register for a seller account, or if you update any relevant information on your account.
Getting Form 1099-K from eBay
If your sales hit the payment threshold, eBay must prepare and send 1099-K copies to the IRS and to you by January 31 of the following year. IRS 1099-K payment reporting thresholds by year: $5,000 in 2024. $2,500 in 2025.
2024 tax year Form 1099-K threshold
For tax year 2024, eBay and other online payment platforms are only required to report transactions to the IRS once you hit an annual threshold of $5,000 in gross payments with no transaction minimum. Prior to 2024, the threshold was $20,000 and at least 200 transactions.
Yes, we have a buyer exemption system that allows you to submit tax exemption certificates to eBay and make purchases without paying tax. Upload your tax exemption certificate. Learn more about eBay's Buyer Exemption program for sales tax.
You must report any profit from eBay sales as taxable income, regardless of the amount, but for tax year 2025 and beyond, eBay sends a Form 1099-K to sellers who have over $20,000 in gross payments from more than 200 transactions, a return to the old threshold, making detailed record-keeping crucial for tracking profits and expenses for all sales, whether you get a form or not.
For the 2025 tax year, you'll generally receive a Form 1099-K from platforms like eBay, Etsy, and payment apps if you have over $20,000 in gross payments AND more than 200 transactions, but you must report all income (even small amounts) if it's for goods/services, as you're taxed on profit, not just when you get a 1099-K, with lower state thresholds possible.
The "20k rule" refers to the traditional IRS threshold for reporting income from payment apps and online marketplaces on Form 1099-K: over $20,000 in gross payments AND more than 200 transactions in a calendar year. While a law (the American Rescue Plan) temporarily lowered the threshold to $600, recent legislation, the One Big Beautiful Bill Act (OBBBA) (OBBBA), has reinstated the $20,000/200-transaction rule for tax years starting in 2025, providing relief for casual sellers and gig workers.
You should be careful about sharing your number, even when you're asked for it. You should ask why your number is needed, how it'll be used, and what will happen if you refuse. The answers to these questions can help you decide if you want to give out your SSN.
If you sell over $600 on eBay, you must report the profit as taxable income, even if you don't receive a Form 1099-K (which currently requires $20k/200 transactions federally for 2025+), because some states have lower thresholds, and you're responsible for taxes on profits. You'll likely get a 1099-K in certain states (like MA, VT) at $600, which reports gross sales to the IRS and you file on Schedule C, deducting expenses like fees, shipping, and inventory costs to find your taxable profit.
Each time an individual divulges his or her SSN, the potential for a thief to illegitimately gain access to bank accounts, credit cards, driving records, tax and employment histories and other private information increases.
eBay's fees vary based on the product category and the total sale amount. For most categories, the final value fee is 13.6% on the total sale up to $7,500 per item, with a 2.35% fee on the portion of the sale over $7,500.
As a UK resident, when you sell over £1,707 or more or complete 30 or more sales transactions within a calendar year, eBay is obliged to report certain personal or business information to HMRC in accordance with the UK digital sales reporting legislation. eBay will notify you when you have crossed these thresholds.
If your eBay sales add up to more than $20,000 in more than 200 transactions in a year, eBay will send you a Form 1099-K. This form reports your earnings to the IRS, ensuring it's aware of your sales activity. When you receive a Form 1099-K, it means that the IRS expects you to report this income on your tax return.
Independent contractors must report all income as taxable, even if it is less than $600." If you fail to report your income, it can result in hefty penalties.
In January 2026, eBay will send you a Form 1099-K for your 2025 sales. It will include the total payment amount of your sales in 2025, and you can use it to determine your taxable income from online selling. This information will also be reported to the IRS, as required by law.
The IRS does not actively monitor every Venmo account 1-(855)(518)(9622). However, Venmo may report certain transactions to the IRS if they meet federal reporting requirements 1-(855)(518)(9622). This typically applies to income-related payments, not casual personal transfers 1-(855)(518)(9622).
The short answer is a resounding yes, and the reasons why might surprise you. Despite the competition, eBay continues to be a powerhouse. As of the first quarter of 2025, the platform boasts 134 million active buyers and around 18 million sellers, with nearly 2 billion live listings at any given time.
If you list more than 250 items per month, you'll start paying a $0.35 insertion fee per listing. Category exclusions apply.
Not all sales are taxed. Occasional sales of second-hand items do not necessitate reporting, especially when such items are sold for less than the original purchase price. However, if selling on eBay is done regularly for profit, the IRS considers it a business. So, income should be reported.