If you’ve recently tried to sell tickets on StubHub, you may have noticed that they are now requesting your Taxpayer Identification Number (TIN). This could be your Social Security Number if you are selling tickets as an individual, or your Employer Identification Number if you are selling tickets on behalf of a business. StubHub’s requirement to provide a TIN has led to some confusion and raised several questions among users.
What is a TIN and why does StubHub require it?
A Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service (IRS) to identify taxpayers. There are several types of TINs:
- Social Security Number (SSN) – Issued to individuals by the Social Security Administration.
- Employer Identification Number (EIN) – Issued to businesses and other entities by the IRS.
- Individual Taxpayer Identification Number (ITIN) – Issued by the IRS to individuals who do not have and are not eligible for a SSN.
StubHub requires users to provide their TIN when selling tickets for tax reporting purposes. Under US law, payment settlement companies like StubHub are required to collect TINs from payees to report earnings over $600 per year to the IRS. This requirement comes from the Internal Revenue Code 6050W, which mandates the reporting of payment transactions to improve tax compliance.
When did StubHub start requiring TINs?
StubHub rolled out the TIN requirement gradually over the course of 2021. In January 2021, they began by requesting TINs from high-volume sellers who sold more than $600 worth of tickets in 2020. Over the following months, the requirement was expanded to apply to more and more sellers. As of early 2022, all US-based StubHub sellers are required to provide their TIN, regardless of sales volume.
What information does StubHub require along with my TIN?
Along with your TIN, StubHub will ask for additional information such as:
- Your legal first and last name
- Your business name, if selling as a business
- Your home address
This information is required to verify your identity and properly report your earnings to the IRS. StubHub needs to confirm that the TIN you provide matches your personal information as an additional safeguard against fraud or misreporting.
What if I don’t provide my TIN to StubHub?
If you do not provide a valid TIN, StubHub will not allow you to complete ticket sales. Your account will be restricted from listing and selling tickets until you provide the requested tax information. StubHub’s policy states they are legally required to collect TINs, so there are no exceptions or workarounds for avoiding providing your number.
Are other ticket resellers requiring TINs too?
Yes, StubHub is not the only ticket marketplace enacting this policy. Competitors like Vivid Seats, TickPick, and SeatGeek have also updated their seller requirements to collect TINs. This industry-wide change is happening now because third-party settlement companies like these platforms must comply with the tax reporting requirements that took effect January 1, 2022.
Do I need to provide my TIN for sales under $600?
Yes, all US-based StubHub sellers must provide a TIN, even if you expect to sell less than $600 worth of tickets. StubHub’s policy does not have a minimum sales threshold – any seller listing tickets needs to complete their tax information. This eliminates the hassle of collecting TINs mid-year from sellers who exceed $600 in gross sales.
How does StubHub use my TIN?
StubHub uses your TIN solely for tax reporting purposes. Specifically:
- Your TIN is needed to generate a 1099-K form reporting your annual sales over $600 to the IRS.
- Your TIN may be provided to state agencies for tax reporting requirements.
- Your TIN helps verify your identity and prevent fraud.
StubHub states that your TIN will not be used for any other reasons or shared with other parties besides tax authorities.
Is it safe to provide my TIN to StubHub?
StubHub states that they take security very seriously and encrypt all sensitive personal data. As a major marketplace handling ticket sales and customer information, StubHub has security protocols in place to protect your TIN and other details. Their privacy policy outlines measures they take, including:
- Encrypting data in transit and at rest
- Using firewalls, intrusion detection, and data access monitoring
- Strictly limiting employee access to personal data
- Partnering only with processors that meet data security standards
While no system is completely immune to breaches, StubHub’s security precautions help protect your TIN once provided. You can access their privacy policy for more detailed information.
What if I am uncomfortable providing my SSN?
Some individuals may feel uneasy sharing their full Social Security Number, even with reputable platforms like StubHub. While StubHub requires a SSN to report individual sellers’ earnings, you have a couple options if you have concerns:
- Apply for an Employer Identification Number (EIN) and provide that instead. The process takes about 10 minutes online.
- Limit your sales on StubHub to under $600 per year to avoid 1099-K reporting.
Unfortunately, StubHub does not allow using an ITIN if you do not have an SSN, as ITINs are only for tax reporting purposes and not identification verification.
What are the risks of not providing my TIN?
The main risks of refusing to provide your TIN to StubHub include:
- You will not be permitted to sell tickets until you comply.
- If you exceed $600 in sales annually without providing a TIN, you may have difficulty reporting your income properly to the IRS.
- You may have tax liability from unreported 1099-K income if StubHub is unable to generate a 1099-K without your TIN.
Essentially, you cannot use StubHub’s marketplace unless you comply with their tax information requirements. And avoiding providing your TIN can lead to problems accurately reporting your earnings.
Can I provide my TIN just once, or do I need to provide it for every sale?
You only need to provide your TIN once when setting up your StubHub seller account. Once your tax information is saved in their system, you will not need to re-enter it for every sale. StubHub’s system associates your TIN with your account profile.
Does my business EIN provide any tax advantage over using my SSN?
Selling tickets under a formal business Entity provides a couple potential tax advantages:
- Earnings are taxed at business income rates, which may be lower than individual income tax rates depending on your situation.
- More expenses may be deductible as business expenses to offset your earnings.
However, there are also additional costs and paperwork associated with maintaining a business. Consult a tax professional to understand if forming a business entity could benefit your ticket sales activity.
Can foreigners or non-US residents sell tickets on StubHub?
StubHub does allow some international sellers, though tax requirements still apply. Non-US sellers must fill out a special W-8BEN form and may need to provide other national identification numbers. Countries outside the US typically have their own tax information reporting requirements similar to 1099-Ks. Be sure to consult StubHub’s policies for international sellers for specifics.
Conclusion
In summary, StubHub and other ticket resellers now requiring Taxpayer Identification Numbers for all US-based sellers in order to meet IRS reporting requirements. This ensures all ticket sale earnings over $600 are properly reported. While providing your TIN involves sharing sensitive information, platforms like StubHub use encryption and limited access to protect your data once provided. Not sharing your TIN can restrict your account and complicate tax reporting. Be sure to consult StubHub’s website and privacy policies for more details if you have any additional concerns about providing your tax information.