thredUP handbags, which are known for their high quality, are considered as non-returnable. It helps me purge my clothing. As another example, Uber has more than one million drivers in the US. When I finally got one well after 10 days, then another, they were rather generic, none explained why my new orders were cancelled. You pay Uber and pay the independent driver. Click here to get notifications about new complaints of thredUP. Signing Up For ThredUP Here's the cost breakdown: Price: $50. They have overhead costs like warehouses, employees, shipping supplies, and maintaining an extensive website. Be warned, cash out option is laughable. You make a little and they take their cut for their hard work. When does Robinhood send 1099? Despite having a type-A personality, I wouldn't call my closet particularly well-organized. So what to do? Low value items clothes and accessories from less expensive stores (such as Kohls or Old Navy) or obscure brands that other people wont recognize. Perhaps The Real Real or Vestiaire Collective is better when it comes to this type of selling? For me this often includes clothes Ive purchased from Stitch Fix, items that still have a tag, or popular brands like Kate Spade, J Crew, Gap, or Kendra Scott. Seeing as that's not what they do, never shopping with them again hurts them more than me. You actually have to pay the site to accept your clothes. What happens if you don't send someone a 1099? You must select this option before you send in your bag. Please try again. You can order a clean-out kit online to be delivered to your home, fill it up with goods you want to recycle(or sell), and leave your bag for your mail carrier, schedule a USPS pickup, or drop it off at any FedEx Office or USPS location. I dont know because nobody at ThredUp ever replied to my question about it. In that case, you must determine if they are employees or independent contractors. Reimbursement to contractors is very common. Desired outcome: Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) reports the sale of stocks, bonds, mutual funds, and other securities. Filed Under: Money Tagged With: clothes, money. Download and Submit 1099 Forms "Employer: Copy 1 & Copy C" and "Contractor: Copy B & Copy." If you locate the View forms button, you'll only get Copy A that we sent to the IRS. I have also attached photo of the tracking # of package being returned to Thredup. They are the self-proclaimed largest fashion resale marketplace with over 35,000 brands. Top Coupon: $10 off all Purchases. We earn a small commission each time someone makes a purchase through one of our links, which helps to support the blog. Did you rake in the cash or walk away from the experience feeling completely deflated? As a personal payment from you to the handyman, you are not required to issue a 1099. I have no gift card and no money now. For items priced at $20.00-$49.99, Thredup takes 70-85%. I finally decided it was best to just lay all the information out there and let you decide for yourself whether or not thredUP is the best route for your gently used clothes. Final sale items are not returnabl At the end of the day, filing for an LLC solely for tax reasons may not make sense for you the key benefit is on the legal liability front. If you have more than just clothes that you are looking to clear out or you want a more complete list of options to turn your gently used items into cash, this blog post about the money hiding in your closet may be just for you! When this happens, they report the income on Form 1099-CAP. A 1099 for independent contractors has no employee benefits or employer contributions. Items matched an overstocked category. These boots were worn only twice and were in pristine condition. ThredUp takes care of the rest Poor quality clothing will be given to textile recycling partners to recoup money. I purchased this box on July 5th. What kind of a shady company is this? Youll get no argument from me about the virtues of shopping on ThredUp. . Or perhaps the seller altered the price in a cheeky attempt to make the necklacecovetable? thredUP Well, its basically an online consignment shop. My comment didnt come through. Next youll receive notification of your items going live on their site. Had a few others say the same xx. My name is Kathryn Goodfellow-78 Prospect Ave., Norwood, Mass. We promise not to send you any unrelated messages, Click here if youd like to unsubscribe from notifications about new complaints of thredUP. As you can see, the rules can be confusing - and sometimes far from clear cut. I can see that boots from your bag I checked the address and even walked to several neighbors homes. Click to share on Facebook (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Tumblr (Opens in new window), see photos of what we donated in this blog post, How We Screamed Our Way through the Dave Ramsey Show, I Was Broke, Too A Look at my Early Finances, Sinking Funds Why You Need Them & Why We Love Them. Yes, I did have my bank investigate and was informed that Thred Up denied any of this happening. All items are subject to a $1.99 restocking fee They should be investigated for cheating so many people out of their money. If you make payments personally and not for your business, you are not required to send a Form 1099-MISC. I bet they dont give to charity, perhaps they sell these pieces on, just not on their site? It's the contractor's responsibility to report their income and pay their taxes. I believe this is just a fraudulent scam. Does Robinhood supply a financial statement? information about the income paid to the employee, the amount of taxes withheld, and the benefits provided. So frustrating! It is too long by 1/2 inch at least. Then, as of August 28, 2018, the thredUP restocking fee was made permanent, so now for any item under $50 you return, you'll receive the full amount back in cash or credit, minus $1.99 per item. Lo and behold when they finally processed my box after 3-4 months of waiting, the Burberry Have contacted them several times about sending my stuff back Thank you for following up with us. Then again, thredUP might not be the gold mine that it sounds like. Your experience is exactly what I feared might happen after I read how they work. However, you must issue a 1099-NEC or 1099-MISC if you pay your contractor or freelancer with cash or by check. A large plastic bag with the return address already on it will arrive in your post within a couple of weeks. The IRS has a series of thresholds determining whether someone is an employee or an independent contractor. I was wrong, the largest size these would fit is a size 10, my best friend wears a size 9.5 and they fit her perfectly will a hair of room in the back. I want my items returned or paid the equivalent of what I lost because of their inability to handle incoming merchandise. Subscribe to our newsletter. Mail your kit Once you have filled up your kit, just place it in the mail using the prepaid shipping label. Thanks for that love xx. It was just a dress! I have tried messenger, chat, emails, nothing. Theres no doubt Ebay is still hands down the best for making a profit but you have to do all the hard work which is no good for the time poor. And there are three different deadlines for each form, namely the. Im sure I wouldve gotten more by just throwing everything in the trash. I have contacted them via email 4 times and tried to rectify through my credit card company with no response. We highlight products and services you might find interesting. If you hire a non-U.S. citizen and they work for you inside the US, you must file a 1099-NEC, assuming the transaction meets the other filing requirements. And one pair of pants had a cut at the bottom of the leg. Even though lenders are only ever required to send 1099-Cs if a canceled debt is worth $600 or more, it is still your responsibility to report smaller canceled debt amounts as gross income on your federal income tax returns. High value items this includes new and like-new items from a known (and higher priced) brand or designer. Out of the fifteen, two didnt sell so they also went to charity. The key is that these must be personal payments and not business payments. If a business fails to timely issue a 1099, the IRS can impose penalties. Now as to WHO the beneficiary is of my charity, I cant tell so for that reason I wontsell on ThredUp again. A handful of companies will actually reward you for getting rid of stuff you no longer use. [protected]; [protected]@aol.com I sent a $125 emails blouse and got $4 and Lululemon leggings I paid $128 plus tax for I got $6 - Ive entailed 2x there is no phone number - this company is a fraud - I need to get my designer items back ASAP There is no disclosure no follow up and I havent even gotten the $12 mailed to me for the two items sold so far- I need file a claim w BBB, Desired outcome: I got my mother of the bride dress on thredUP and formal wear has unbelievable low prices. The only outcome I would want is full refund in it's entirety. For example, imagine you are a business that hires others to help provide your services. But what if you do handyman work for your neighbors business, Main Street Realty, LLC, and the business pays you $5,000? [protected]@yandex.com. They photograph, upload and describe your items. You never know the bad policies of a site until something goes wrong. What happened to the rest of my things? 1099s are used to report other types of income. When corporations undergo substantial change or ownership control, sometimes, they send the stockholders cash, stock, or other property as part of the restructuring. However, if they perform all of their work outside the US, you are not required to issue the 1099-NEC. But, the IRS counts that amount as income to you, and the lender will send you a, When corporations undergo substantial change or ownership control, sometimes, they send the stockholders cash, stock, or other property as part of the restructuring. For me, since my focus is largely on low-maintenance recycling, earning a few bucks here or there is just a bonus. 1. Items were unclean or stained They probably will tell you they don't accept them and you won't get anything or if they do accept them you will get a few dollars. Rob's a self-proclaimed nerd, Maria is a fashion-conscious stay at home mama, Dessa the super-silly big sister and baby Harvey makes us a family of four. Its just how business works. While I was able to work with the Thred Up customer service to stop the sale and shipment of goods, I was NEVER refunded the money. Get free shipping on orders $79+ using the promo code on our. This suggests a possible upside of 227.3% from the stock's current price. If you're going to receive a 1099 form from Robinhood, these will be issued in mid-February for the preceding tax year. You can purchase syndication rights to this story here. Since I financed this purchase wit Afterpay, I contacted them for assistance. I am happy to help you. To qualify for a refund, all items must be in the same condition in which you received them I sent emails and was told I would have to wait 7-10 days for a response. I resold all of my Stitch Fix clothes on my sale Instagram account: @MariaSellsThings, pulled a stack of non-Stitch Fix clothes that were in top-notch condition to sell on thredUPand donated the rest to the Salvation Army (you can see photos of what we donated in this blog post. A 1099 is an "information filing form," used to report non-salary income to the IRS for federal tax purposes. If you, as an individual, are paying for non-business services or goods, you do not have to issue a 1099. * My order was delivered, but on the threadup site it still shows as 'in transit'. 2.) The only option for the men's clothing box was 10 lb at $50. If you're looking to get the most money possible for high-end items, it's probably not the most lucrative option. A complete refund and no more run around! Form 1099-R reports the distribution of $10 or more of retirement benefits from pensions, annuities, or other retirement plans. The thredUP app puts a thrift store in your pocket by letting you sell women's and children's clothing and accessories to declutter your space while making money all without much effort. Return Processed by Thred up May 31, 2022. No, not unless you pay for the option, which is $10.99 (April 2020 pricing). No it aint quick. Fill up your kit Free up space in your closet by filling any box or bag with gently used items you no longer wear, need, or love. These updated FAQs were released to the public in Fact Sheet 2022-41 PDF, December 28, 2022. Hi Indulekha Desired outcome: And no you cant add your own description like Ebay or Vestiaire Collective. Given the amount of textile waste, it sounds good in the sense that a) people can recycle textiles responsibly and easily and b) there's an opportunity to make more useful donations to charities. You also don't have to deal with the legwork that platforms such as Poshmark and eBay require. Seeing as that's not what they do, never shopping with them again hurts them more than me. Other 1099 copies are . Read all about my experience with this secondhand fashion website here. xx, Its so weird isnt it? -$14.99 flat rate. There are businesses that don't require a 1099. ThredUP has no customer service phone number and if you click on Chat and Email on their site, Chat never opens. [protected]@verizon.net. I actually spat out my tea at the time, unable to hold in my laugh. Nope. Payment Card and Third Party Network Transactions (Form 1099-K), Rents, profits, or other gains (Form 1099-MISC), Commissions, fees, or other payments for work you do as an independent contractor (Form 1099-NEC), Payments by brokers/barter exchanges (Form 1099-B), Distributions from any retirement account, Distributions from an employee stock ownership plan. I sent a large box inside the bag of jewelry from my store inventory, ladies long cream white wool coat, granddaughter's two prom dresses; all in mint condition and yet they never arrived? The Salvation Army will also come pick up donation boxes if you sign up for a slot online, but be prepared to wait weeks because this option is popular. Founded in Cambridge, Massachusetts in 2009 by James Reinhart, Oliver Lubin and Chris Homer, this ground-breaking, privately-owned, start-up's headquarters are located in downtown San Francisco with distribution centers all over the United States. Buyers took a quiz to determine their style and received a box of ten handpicked items designed to suit their looks. I just decided to sell to threadup for the first time. If you plan to send your clothes to thredUP, my best advice is to send the clothes at the very beginning of the appropriate season (right when they start to appear in stores). Go to ThredUp and click CLEAN OUT in the top menu bar. Dont worry, a detailed list of requirements comes with the bag. O.K so they do all the heavy lifting. And if every bag is a $5 donation rather than by pound, you could theoretically send in a few bags if your items could fit in two as easily as in one. To curate a thoughtful & cohesive wardrobe - where their clothes, shoes & handbags transcend any occasion or season. i would like to talk to the customer service representative. The only outcome I would want is full refund in it's entirety. You might sell stocks at a profit, earn interest from an account, get dividends from a company, receive distributions from a retirement account, and more. That's the name of the actual box on the 1099 form where you will officially fill in the amount you are claiming. freelancer or independent contractor less than a total of $600 for the year, you are not required to send them a 1099. I've given this site three chances to prove themselves, but I've come to the conclusion they're just a money laundering site at the customers' expense. Kind regards, The stuff they rejected. Push Continue. Then, since I sent in some relatively high-end items using the Standard option, I waited to see if ThredUp would list or responsibly recycle them (I chose not to have them sent back if they weren't sold). The items that didnt pass ThredUps rigorous inspection would be donated to charity. 30%. The remaining 60% is dealt with in . All about payouts. Complete. Those are offered at a cheaper price per pound because you buy more at once. They do all the heavy lifting by listing photographing, marketing, and handled the commerce of your items. Coinbase began submitting 1099 forms to the IRS and to individuals users in 2017. You can also look at it as a way of paying forward the lovely pieces in your closet that you no longer have use for. Otherwise, the great quality clothing that they say they won't take will be given to other sellers to sell, or used in their ThredUp Rescue Boxes. How Does thredUP Work? I'm sorry if I wasn't clear in my last email. ThredUP is the most convenient mass upcycling program I've found for city dwellers without a car. If you paid a freelancer or independent contractor less than a total of $600 for the year, you are not required to send them a 1099. Your return has been processed. In truth thats thepoint as well as the problem with ThredUp right there,in a nutshell. However, the IRS does require backup withholding for some types of payments at the current rate of 24%. Then they answered the first. Form W-9 has been described as the employers best friend because it calls for the vendor to supply the information the employer needs. But the IRS lists several exceptions to this general rule, including how much you paid and whether you are in a trade or business.