1099K Reporting for Illinois
Hi Terry, Does Illinois require form 1099-K reporting? I received a 1099-K for 2021 from eBay with only about $1300 in sales. I know the federal requirement for 2021 is $20K, and will change to $600 in 2022. I’m retired and none of my retirement income is taxed in Illinois, but do I need to file an Illinois return because of this 1099K? For Federal, I plan to report the eBay income as a non-business income on Schedule 1, line 8i. I’m a casual seller, just de-cluttering my house! Then I plan to end my listings on eBay, too much work for my taxes!!!
Terry Says
Yes, that’s going to be a real problem for people like you (and me, since I occasionally sell old stuff!). I’m surprised eBay didn’t publicly protest this new regulation!
Here’s the rule for filing in Illinois:
You must file a Form IL-1040, Individual Income Tax Return, if you are an Illinois resident and: You were required to file a federal income tax return. You were not required to file a federal return, but your Illinois base income is greater than your exemption allowance.
The Illinois exemption amount last year was $2335 in income (and as you noted, your retirement withdrawals are not taxable in Illinois (yet)!
I think these 1099K forms are also going to be used for state filings –but that will be a big issue to be tested next year at this time! Frankly, the IRS hates to talk about it, and wouldn’t comment on the record for my upcoming column on this subject. So I have no idea how the state will handle this issue.
