What if I don't give eBay my social security number?
Asked by: Emelia Leuschke | Last update: February 5, 2026Score: 4.2/5 (17 votes)
If you don't give eBay your Social Security Number (SSN), you won't be able to receive payouts from sales, your selling privileges will be restricted or suspended, and you might face backup withholding on any funds, because eBay must legally collect this information for IRS tax reporting (Form 1099-K) for U.S. sellers. You can use an Employer Identification Number (EIN) instead if you're a business, but for individuals, providing the SSN is mandatory to sell and get paid, otherwise, your money might be sent to state unclaimed property, notes the eBay Community blog on this topic.
Is it safe to put your social security number on eBay?
If you have an eBay account but use it mainly to buy goods and services, you should not worry about providing your social security number and tax information to the platform.
Do eBay sellers pay into social security?
1099 eBay taxes you need to pay on sales. As an Etsy or eBay seller selling stuff online, you have to pay self-employment taxes on your income. Self-employment taxes are composed of two parts: Social Security (12.4%) and Medicare (2.9%). So, the total tax liability would be 15.3% on your eBay sales.
Why does eBay want me to verify my identity?
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.
Why is eBay asking for my social security number on Reddit?
eBay asks for this for tax and verification purposes and is mandated by law. eBay is required to report seller earnings to the IRS.
Why is eBay Asking Me for My Social Security Number? | Managed Payments
Is it okay to give out my SSN?
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.
What are the risks of providing my SSN?
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.
Does eBay inform HMRC?
Providing your tax identification information
Under the UK digital sales reporting legislation, eBay is required to collect and report your tax identification information to HMRC.
What is the 5000 rule on eBay?
The "5000 rule on eBay" refers to the temporary IRS threshold for reporting income on Form 1099-K for the 2024 tax year, where platforms like eBay report sellers who received over $5,000 in gross payments (though this has now reverted for 2025 onwards to the original $20k/200 transactions rule). It's crucial to understand this relates to gross payments (before expenses) and is about IRS reporting, not your actual profit, meaning you must track your own income and deductions for taxes, even if you don't get a 1099-K.
What is the 3 day rule on eBay?
If the seller doesn't offer returns, the buyer must request a return no later than 3 calendar days after the estimated or actual delivery date. If the seller offers returns, the buyer must request a return within the seller's stated return window.
How much does eBay take from a $1000 sale?
For a $1000 sale on eBay, expect fees around $120 to $150 or more, depending heavily on the item's category, as eBay takes a Final Value Fee (FVF) of 12-15% on the total sale (item + shipping), plus a 30-40 cent per-order fee, with some categories like Jewelry (tiered 15% down to 3%) or specific Electronics having different rates, and Store subscribers getting slight reductions.
How much can I sell on eBay without paying tax in 2025?
2025 and later years Form 1099-K thresholds
The One Big Beautiful Bill Act (OBBA) reverted the 1099-K reporting thresholds to the previous $20,000 in payments and a 200 transaction minimum. The lower $2,500 and $600 thresholds are no longer in effect for 2025 and 2026.
How much can I sell without paying tax in the UK?
However, if you sell items worth more than £1,000 over the year, you will need to tell HMRC by registering for Self Assessment. So, it's a good idea to keep track of how much you're earning, and if you think your income is over £1,000 contact the HMRC for advice.
Why does eBay need the last 4 digits of SSN?
eBay is required by law to report each seller's sales to the IRS, and it can't do that without an SSN. Your full SSN is encrypted and eBay doesn't provide access to it to CS reps. They see only ***-**-1234 so they can verify your identity when you call.
Does eBay report sales to IRS?
For 2025, the IRS requires eBay and other online marketplaces to report total sales exceeding $20,000 and 200 transactions on Form 1099-K. Use the Form 1099-K that eBay sends to you when determining whether you have taxable income from the sale of goods or services.
Is your information safe on eBay?
The platform is generally safe for online shopping when you follow its recommended practices. On top of that, eBay implements multiple layers of protection, including seller identity confirmation, secure payment processing, and a comprehensive money-back guarantee program.
What is the $600 rule on eBay?
The "$600 rule" on eBay refers to a past IRS proposal requiring payment platforms to issue a Form 1099-K for sellers receiving over $600 in gross payments, regardless of transaction count, to report income for tax purposes. While this threshold was delayed and then essentially repealed for 2025 and beyond (reverting to $20,000 and 200+ transactions), sellers should always track their earnings as all profits from sales are taxable, even if below the 1099-K threshold.
What are the new rules for sellers on eBay 2025?
Effective February 2025, ebay will hold private sellers funds for 14 days if the order is posted with an un-tracked delivery service (such as Royal Mail 2nd Class).
How much can you sell online before paying tax in 2025?
For the 2025 tax year, you'll receive a Form 1099-K from platforms like eBay or PayPal only if you have over $20,000 in gross payments AND more than 200 transactions, but you must report all taxable profit from online sales, even if you don't get a form, especially if selling items for more than you paid (like a business/hobby income). Selling personal items at a loss generally isn't taxable, but consistently selling for profit means you owe taxes on net income, regardless of the $20k/200 transaction threshold.
How to avoid eBay HMRC?
It depends on what you sell and how much you earn: Casual selling: If you sell a few personal items occasionally, you may not owe tax. Trading: If you buy items to resell or run a shop, HMRC views you as a business. Threshold: Income above £1,000 from sales must be reported.
What triggers an HMRC investigation?
The most common trigger for an investigation is submitting incorrect figures on a tax return - so it's worth asking an accountant to offer professional advice about your accounts and check over your tax returns before you send them.
How much can I sell on eBay without paying tax in the UK?
If you craft items to sell or buy goods just to resell, you're likely trading. You can earn up to £1,000 without paying tax, but earn above this and you'll usually need to tell HMRC by doing a self-assessment tax return.
What happens if I refuse to give my Social Security number?
If you refuse to give your Social Security Number (SSN), you can generally be denied services, credit, or benefits, as many entities (banks, employers, government agencies for benefits) require it for identification, tax, or legal reasons, though some private businesses might accept alternatives like an ITIN or driver's license, while federal/state law requires it for some official purposes. Refusal isn't illegal in private situations but can prevent you from getting what you need, like a job, loan, or government assistance, though you might have recourse for religious objections or specific state protections.
What's the worst thing someone can do with your SSN?
The worst thing someone can do with your Social Security Number (SSN) is commit comprehensive identity theft, using it with other personal data (like name, birthdate) to open new credit/bank accounts, steal tax refunds, get medical care, obtain government IDs, or even commit serious crimes, leaving you with ruined credit, financial loss, and legal trouble while you try to prove your innocence. It's the key to your financial and personal records, allowing fraudsters to impersonate you across many areas.
Who should you not give your SSN to?
You should not give your Social Security Number (SSN) to unsolicited callers, texters, or emailers, even if they claim to be from a legitimate company, nor to schools (beyond basic enrollment), sports clubs, or most private businesses unless absolutely necessary for legal/financial reasons like banking or employment, and you should avoid writing it on checks, business cards, or public records to prevent identity theft. Always be cautious and only provide it when it's legally required and you trust the recipient.