ThredUP Review: How Does the App Work And Should You Use It? - Clark Howard Selling on ThredUp is NOT for the entrepreneurial. I have tried messenger, chat, emails, nothing. . All about payouts. Inbox When I shipped my own Clean Out Bag last summer, Ishipped my bag sometime in July, but thredUP never contacted to let me know it was received. Form 1099 indicates that you are self-employed / independent contractor. Every time I clean out my closet, I sort my clothes and accessories into a few different categories. When Are 1099s Required to Be Issued (Updated 2023) + FAQs I feel they grew too large to handle the amount of clothes coming in and their customer service definitely got worse. Read all about my experience with this secondhand fashion website here. Examples of payments requiring backup withholding are: Payments excluded from backup withholding are:: Here are the answers to some common questions about when 1099s are required to be issued. I combed through their website and there is NO mention of this policy. We aredefinitely in tidying mode at the Gavin household especially when it comes to closets and storage space. You get to know your neighbours and there might be some nice clothes in it for you. Suppose you are in business for yourself and provide services to other companies or people. Individuals. 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: A two-way e-commerce for smart and sustainable shopping. Definitions. Do shoes need to be sent in original boxes? | thredUP Q&A Boxes are not necessary. Value 630. Form 1099-R reports the distribution of $10 or more of retirement benefits from pensions, annuities, or other retirement plans. Next youll receive notification of your items going live on their site. It's the right thing to do from a humane and ecological perspective, but it's not always easy when you live in an urban center with no personal transportation. thredUP It's sort of like Poshmark or eBay except you can send all of it off at once, and they take care of the actual selling: inspecting them, professionally photographing them, listing them, and shipping them. Helpful (1) Vicki B. on 9/26/15. They refer to their earnings as nominal but thats kind of a vague word, dont you think? * We frequently receive products free of charge from manufacturers to test. If you use a broker to sell stocks, bonds, or other securities, they will send you Form 1099-B to report gains or losses from your transactions in the preceding year. 11 brokers have issued 12-month price objectives for ThredUp's stock. I added up the value of the five garments that had sold and thredUP earned $99.95 for those items (with one dress yet to sell). You do not need to issue a 1099-NEC or 1099-MISC for credit card payments as listed below. thredUP wont list items that show more than the slightest bit of wear, so spare yourself the disappointment and be very honest with yourself about the quality of your clothes while you sort. The first year she used Mercari, Heltke didn't know that, and she received a 1099 on which she owed taxes. Fill your bag with your carefully selected items. A handful of companies will actually reward you for getting rid of stuff you no longer use. Desired outcome: When your items sell you have the choice of credit to shop or cash out. I purchased a pair of slides made in China and they were described as "44-45=12US women". These boots were worn only twice and were in pristine condition. I have been stashing away some of my better brand, lightly worn clothing for resale and was considering ThreadUp. Seeing as that's not what they do, never shopping with them again hurts them more than me. Our first baby is due to arrive in July and our 950 square foot house has very limited closet space, which means that all of the things weve been tucking into the extra bedroom need to find a new home. Robinhood Crypto Taxes: Complete Guide | Koinly What You Need To Know Before Selling Your Clothes On ThredUP - TheList.com Boxes aren't needed. What Is a 1099 Employee? Everything You Need to Know ThredUP does a great job of sorting through items received from sellers to only resell those items in good or great condition. 1099 Online Filing Software - Create, Issue, Send, e-file | Track1099 Which means that they have to make a profit from the $50 blouse you send their way and the only way to do that is by offering you less money for your blouse than its actually worth so that they can resell it at a higher price, pay their bills, and earna few bucks for themselves. FedEx cant get in touch with ThreadUp to confirm the order either. They should be investigated for cheating so many people out of their money. Thank you for reaching out! Id stick with Ebay for anything I sell in the future; Ive never gone wrong with them. xxx, I am with you Lisa. As an employee, your employer will file a W-2 which reports your income and withholdings for Social Security FICA, Medicare, and more. If you've ordered a bag from thredUP.com, it's already "activated" and associated with your account. The contractor must be a partnership or individual. Starting in July of 2021 I sent in a massive amount of designer clothes. Greetje, Oh I agree with you Greetje and I also give away to people I know. Consumers satisfied with thredUP most frequently mention great condition, good quality and polka dot.thredUP ranks 3rd among Used Clothing sites. When I asked them to provide me the email they sent - they went quiet. Thank you for your excellent field work, detective! 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 It reports the income paid to the independent contractor or freelancer. DO NOT SELL TO THREDUP. * We welcome you to send back multiple returns in one package, as long as the return slips are all included. Verrrrry interesting. thredUP store credits will be refunded back to your account 5-7 days after thredUP has received your return order, while credit card refunds can take an additional 3-5 business days to be refunded. Required fields are marked *. They were worn twice so replacement value would be exactly what I paid for them. Conscious shopping & collecting quality pieces over quantity is the most sustainable path to timeless outfits & a healthy planet. Verify or enter missing email addresses for your contractors so that we can send access to view their 1099 forms online. In exchange, I received $37.40 in thredUP credit. Desired outcome: These updated FAQs were released to the public in Fact Sheet 2022-41 PDF, December 28, 2022. As you can probably guess I posted some Instagram Stories before I sent my bag to ThredUp. Yes, I did have my bank investigate and was informed that Thred Up denied any of this happening. I wont bore you with every single one. Benefits information above is provided anonymously by current and former thredUP employees, and may include a summary provided by the employer. So, if you're a Target shopper, ThredUp won't necessarily save you money, but it could get you better brands, and the satisfaction of buying used vs. new. WAIT FOR AN INCREDIBLY LONG TIME.It took ThredUp two months to process my bag. On top of the fact that thredUPis a business and needs turn a profit somehow, theres another major factor that will impede your ability to make bank on the clothes you send their way: discounts. Although its fair to say if this is the grand sum I make from my huge bag of clothes then its more for charity than profit. Push Continue. When I reached out to them via email they said they have a policy that after one year any money is converted to a gift card. They paid pennies for them, did not return some of my items when I paid $10.99 to have them returned and now I find out that they gave away my Hunter rain boots when I specified I wanted them back. Please share your experience in the comments! In any case if you know your stuff and do your research, you shouldnt get ripped off. Ive never tried Thread Up. How do I file a 1099 to a foreign contractor? - QuickBooks Finally almost six months after sending my clean out kit to ThredUp, I received my last credit of $6.23. ARE INFLUENCERS PART OF THE FASHION PROBLEM? Form 1099-K Frequently Asked Questions | Internal - IRS tax forms It's not for lack of trying. 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. March 10, 2023. Learn how your comment data is processed. It shows the total amount of benefits you received from us in the previous year so you know how much Social Security income to report to the Internal Revenue Service on your tax return. The penalty amount depends on how long past the deadline the business issues the form. Unfortunately, I give a big thumbs down to thredUP online consignment site. -Only available for orders with items from multiple warehouses. You can download financial statements from your Robinhood account. 14 Ways to Save on ThredUp Clothing - offers.com It helps me purge my clothing. It is important to know that Canada is limited to purchases from . Form 1099-MISC and Form 1099-NEC are similar but have one main difference. Theres one more thing you need to be aware of before you attempt to sell your clothes on thredUP. Thats the risk you take by giving them carte blanche on your listing. I guess if you took out my outdated items, it would be more on target (43% accepted) with their average acceptance. Fortunately, the IRS always provides the dates in, General Instructions for Certain Information Returns. Conversely I have only positive experience buying from the site. I just decided to sell to threadup for the first time. I would like to be able to use the store credit or have the money returned to my account. 1. Desired outcome: xx, Its so weird isnt it? It may be something silly like the clothing is too old. Big Thumbs Down to thredUP Online Consignment Site Not even $10 worth. 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. He must send a 1099-MISC form to the developer. The online store thredUP, which has its headquarters in San Francisco, California, has created a sophisticated resale experience on one of the largest online marketplaces for women's and. Never the less wherever this beautiful maxi is hanging now I have no doubt someone is loving it. So if you are paying your babysitter, gardener, or painter, you do not have to file a 1099. Also, please take note that buyers have 14 days to return the item in case they do not like it. Those platforms supply the required information to the IRS. thredUP Company Profile - Office Locations, Competitors, Revenue And one pair of pants had a cut at the bottom of the leg. Learn more. I want the remainder of my items back that they have- they even charged me 9.95 to send stuff back but will not answer emails or return items - no disclosures no phone number, ThredUp terminated my account out of the blue for an order that I disputed in a prior bank account. I contacted customer support so they could look into it. That's the name of the actual box on the 1099 form where you will officially fill in the amount you are claiming. They made sure no one would be able to tell. Every year, we send a 1099-G to . Click here to get notifications about new complaints of thredUP. So as a freelancer, or independent contractor doing work for a business, you get a Form 1099-NEC. Quality 575. Success! 3.) Send a 1099 for payments to corporations only if the payments are for medical, health care, legal or fishing activities. We highlight products and services you might find interesting. As you can see, the rules can be confusing - and sometimes far from clear cut. Saw your post on #iwillwearwhatilike The problem is that Thred up gave me Thred up store credit for the amount instead of returning it to my original payment credit card. As with the expedited processing fee, however, you may not make this money back. PSA DO NOT, I repeat, DO NOT send clothes to ThredUp using their "clean out kit." I sent 20, TWENTY, pieces of quality clothing to them and it took a month and a half for them to process my bag and then give me a whopping THIRTY-FIVE CENTS, yea, $0.35, for these items. Since I opted to forwardthe rejected items to charity, that is where this dress and many others, ended up. I will say that thredUP is pretty transparent about the status of the clothes they keep and list online. The IRS has a variety of 1099 forms to cover all of these and other scenarios. Then again, thredUP might not be the gold mine that it sounds like. I sent numerous emails, and contacted my credit card company and the only reply I received was they could only give me a store credit. On average, they expect the company's share price to reach $4.91 in the next year. Well to be fair Lisa, I dont think the company is doing anything dodgy at all. Chanel Silva ORDER #XHP741U5I5K9 thredUPencourages everyone with a Clean Out Kit to send timely and seasonal clothes their way. thredUP has a consumer rating of 3.17 stars from 5,867 reviews indicating that most customers are generally satisfied with their purchases. I bet they keep the good stuff for themselves of sell them on. ThredUP - Is it Worth the Trouble? - Geek Girl's Guide to Life You can find them in the tax documents section of your Robinhood account. Twice in fact, but never had a reply. 1099-C: The Surprise Tax Form You Get When You Settle Debt - Debt.com If your business pays a contractor or freelancer more than $600, you are most likely required to file a Form 1099. There are different types of 1099s, and they do not all have the same filing date. We promise not to send you any unrelated messages, Click here if youd like to unsubscribe from notifications about new complaints of thredUP. Please DO NOT add attachments that contain your or other peoples personal information, if you dont want it to be visible to the public. If you make payments personally and not for your business, you are not required to send a Form 1099-MISC. But it's easier to remember what it's for if you use the other name it's often known by"non-employee compensation.". I really just want to know out of curiosity and for this post but I never received a reply. Form 1099-INT reports information to the IRS when companies pay dividends or interest. 16 Followers. I am happy to help you. A 1099-Bit is not required to enter the stock sale and associated capital gains. Theres only one way that the company can legitimately afford to knock 40% off their listed prices on a regular basis: bypurchasing their merchandise at a very low rate. Many types of payments are exempt from needing a 1099, including personal payments and total payments to a vendor under $600 for the year. 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). I would love my refund but more I would like to see this company shut down for fraud. They were accepted and then instantly cancelled. I mailed a bag filled with many items including brand new clothes with tags still on them. Your return is complete and your refund of $67.53 has been processed. S-corporations and C-corporations do not need 1099s. Those are offered at a cheaper price per pound because you buy more at once. I want a a refund or my shoes! Your experience is exactly what I feared might happen after I read how they work. Since items can be significantly higher on thredup due to the very low payouts for sellers it actually has everything to do with your question. I sell on ebay though. Relax! Please note: Shipping for Hawaii, Alaska, APO/FPO/DPO, Puerto Rico, US Virgin Islands, and Guam take up to six weeks in . Have you tried to sell clothes onThredUP? For more than 15 years we have helped nearly 50000 customers resolve their issues and will never stop striving to ensure further improvements on our platform for a better communication between companies and customers. Original shipping charge is not refunded when returning items Schedule the USPS or FEDEX to collect the bag free of charge or you can drop it at one of their locations if thats easier. In this case: If a business that pays you doesn't issue a form 1099-misc, it's not your responsibility to make them follow the rules. If you wish do donate your clothes without a payout, the kit is free (but FYI, you dont get a receipt for tax purposes). The grand total I made off ThredUp was $35.46. For me, since my focus is largely on low-maintenance recycling, earning a few bucks here or there is just a bonus. Here are a few lessonsIve learned from my own experience selling my clothes on thredUP. Signing Up For ThredUP I have no gift card and no money now. One month later, on September 12, the bag still wasnt processed and I was made awarethat it could take an additional 3-4 weeks for my bag to be processed because they were backlogged at the time. Currently, there is no expiration date. The items on ThredUp are in excellent condition and generally priced very low although I have come across the odd item that confused the hell out of me. Which means that they take unused clothes, and sell them for a profit. Life, Home, Money, Fashion and Everything else as a Family of 4, April 19, 2017 By Maria Gavin - 106 Comments. Youll get no argument from me about the virtues of shopping on ThredUp. Why ThredUP Expensive ones. Desired outcome: Weird. I purchased this box on July 5th. A complete refund and no more run around! HAVE MORE, WASTE LESS There are enough amazing clothes on the planet, let's wear them. I basically mailed them 3 FULL boxes of clothes and shoes that were practically brand new or had tags. According to the company, item payouts range from 5% to 80% of the listing price, and higher-end brands get you a higher percentage of the payout. You never know the bad policies of a site until something goes wrong. If youre like me and find yourself with more clothes in your closet and dresser than you actually need, you might be looking to cash in some of those higher-value items and thredUPmight be one way to go. ThredUP for men? : r/ThredUp - reddit 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? 60% Off - thredUP Promo Code - March 2023 - CNET Coupons DO NOT SELL TO THREDUP : r/FrugalFemaleFashion - reddit When does Robinhood send 1099? They make it sound so easy and rewarding on their website. Love this post MT, verrrry interesting. High value items this includes new and like-new items from a known (and higher priced) brand or designer. Tue, May 31, 1:18 PM thredUP: Reviews, Complaints, Customer Claims | ComplaintsBoard In any case, whether you're pursuing the . We are so glad you stopped by. The only option for the men's clothing box was 10 lb at $50. This suggests a possible upside of 227.3% from the stock's current price. Claim it and get a lot of features. The other thing sorely lacking is the description of the items for sale. In that case, you must determine if they are employees or independent contractors. 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. In that case, you must determine if they are employees or independent contractors. Mara Leighton is a senior digital culture reporter. For example, imagine you are a business that hires others to help provide your services. Now as to WHO the beneficiary is of my charity, I cant tell so for that reason I wontsell on ThredUp again. If your ordered items don't look on you as you'd imagined, you can send them back for up to 14 days after the delivery date. The remaining 60% is dealt with in . Available Shipping Methods - thredUP Your email address will not be published. 1099 Form for the 2022 Tax Year | Crypto.com Help Center O.K so they do all the heavy lifting. UPDATE: its been close to 2 weeks and they say they have not received them. One shirt had scrapes another had outright tares. If you want to ensure you get all your items back, you have to pay $10.99 for "return assurance coverage." Without this coverage, ThredUP keeps the clothing they don't plan to use, citing that it's too expensive to mail it back to you. We inspect, photograph, list, and ship items for you. 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. You also may have to pay taxes on canceled debt, even if you fail to receive a 1099-C. What to do with it. (See attached photo) to report gains or losses from your transactions in the preceding year. Thanks for that love xx. 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. All returns must be postmarked within 14 days from the date of delivery of an item. To use the service, I ordered a Clean-Out kit from the site, picked it up from my mailbox, filled it with clothes, and scheduled a USPS pickup at USPS.com online. ThredUP Men's Clothing Rescue Box Review - From Pennies to Plenty I have contacted customer service and no one has been able to help me, or locate the bag, and my request for the issue to be escalated to a supervisor hasn't received a response. When a company hires an employee, it files a W-2 with the IRS and shows information about the income paid to the employee, the amount of taxes withheld, and the benefits provided. 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. What countries do you ship to? - thredUP 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. FedEx Tracking ID [protected]. 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. Building https//www.the-sloth.com. Basically a win win in my book. Its an excruciating length of time to wait if you need the money plus youre paid as and when something sells, not in a lump sum. CAN FASHION DO MORE THAN JUST BE SUSTAINABLE? Now you might wanna scroll back to see how full that bag of clothes I sent them was before I shock you with the stats. Who To Send A 1099-MISC Form To? - Forbes 2. Even worse, your clothes will not automatically be returned to you if ThredUP does not accept them. I returned some items and Thred up processed the return, minus restocking fees and contacted me via email of the return amount and successful receipt. The online marketplaces will then send the IRS a Form 1099, so you will need to report your online income and pay taxes on it. May 30, 2022 I returned some items I purchased from Thred Up and expected it to be refunded to my credit card. So after all of that information, the question remains whether or not thredUPis the best way to get the most value out of your old clothes, shoes and accessories. Out of the fifteen, two didnt sell so they also went to charity. So frustrating! (see attached photo) Original order # XHP741U515K9 purchase delivered May 2022 (see attached photo). -Once shipped, your order will be delivered in 3-6 business days. There is no one to hold these thieves accountable or get reimbursed for the items they claim would not sell. Sometimes larger quantities are offered such as 50 lb or 100 lb boxes. 2. SHOP SELL FAVES Grab a coffee and stay a while. Unlike other apps like OfferUp and Facebook Marketplace, there's no heavy lifting on your part with thredUP. This is the third time I've had this happen too.They just ignore your emails too easily. 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. thredUP Promo Code: 30% off. ThredUp takes care of the rest A complete refund and no more run around! For a failure to issue a 1099-NEC or 1099-MISC, the IRS penalty varies from $50 to $270 per form. Non-US customers will not receive any forms from Coinbase and must utilize their transaction history to fulfil their local tax obligations. There is no way to return these for "not as described" as I would lose my shipping charge and this BS $1.99 restocking fee. Then the company must file Form 1099-NEC with the IRS since your payment is above the IRS $600 threshold. Finito. I wear a size 11, but frequently buy size 12 if I think they may run smaller and being made and purchased directly from China, I ordered them thinking, at the least they will be a size 11. Filed Under: Money Tagged With: clothes, money. If you can't bear to let go of your items, you have the option of having thredUP return the items to you for $10.99. That sucks big time Marie! Someone is making something somewhere. Somehow, my bag slipped through the cracks even though thredUP had a record of it arriving August 12. 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. How hilarious is that? ThredUP currently ships to the United States and Canada, with no current plans to expand to additional countries at this time. If you choose to do the Standard Clean-Out, it's good to know the company says that it only accepts 40% of the items in the average kit. Poor quality clothing will be given to textile recycling partners to recoup money. ThredUP told Business Insider that the company found charities often do not have the resources or time to sort through and distribute the clothing they receive, so the company decided to turn clothes into cash for organizations that don't normally take clothing donations. If you use a broker to sell stocks, bonds, or other securities, they will send you Form. I ordered 3 pair of shoes, two did not fit, one was defective. Desired outcome: However, you must issue a 1099-NEC or 1099-MISC if you pay your contractor or freelancer with cash or by check. I would like ThredUP to restore my account, give me my $10 credit and allow me to use my new debit card for new orders.