Recently, StubHub sent out a message informing StubHub sellers that they will also receive “StubHub 1099” tax forms similar to how eBay, Etsy, Amazon, and other sellers will receive 1099-Ks from their payment processors if they meet certain criteria.
Outright has been a hub of information for 1099-K questions and, of course, we quickly heard from StubHub sellers who were confused or upset by StubHub’s announcement.
The concern from StubHub sellers is that the StubHub 1099-K would duplicate the PayPal 1099-K and, thus, their revenue would be double reported. However, we put out a query to StubHub and found out that this will not happen.
StubHub is working with PayPal (both whose parent company is eBay) to send one 1099-K to reflect transactions that occurred through StubHub. Sellers will then receive a second 1099-K from PayPal that will reflect any transactions that they had outside of StubHub (if any). Thus, there will be no duplication!
Although StubHub sellers may have been surprised by this e-mail, they are in the same boat as millions of other online and offline sellers who will also receive these forms. The IRS is expecting between 53 and 56 million 1099-K forms to be sent out this year, making it the 10th largest tax form sent in it’s first year.
For Outright’s guidance on how to handle this form, please see our handy Tax Resource Center or our blog entries on 1099-K. Have you received your 1099-K? Login to Outright.com and head over to your “Taxes” tab to verify it against your Outright income today!