2. Kind regards, This is the third time I've had this happen too.They just ignore your emails too easily. ThredUP does a great job of sorting through items received from sellers to only resell those items in good or great condition. 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. Selling on ThredUp is NOT for the entrepreneurial. But they take well over ten days to respond to my queries and complaints such as Why have you cancelled my orders and now they are blaming ME for it tho they know I never cancelled the orders, and I explained that I only disputed about $12 on the order with my old Chase account. When I made a complain on their portal someone apologize and stated that I will get my money back, that was back in Share your photos and videos with others to prove the truth of your words. ThredUp shoppers expect to bag a bargain but sometimes ThredUp gets it wrong. Conversely I have only positive experience buying from the site. You can download financial statements from your Robinhood account. One shirt had scrapes another had outright tares. Youll get no argument from me about the virtues of shopping on ThredUp. Boxes aren't needed. I returned them the next day and was charged $2 each as a "restocking fee". 3. Life, Home, Money, Fashion and Everything else as a Family of 4, April 19, 2017 By Maria Gavin - 106 Comments. If you're looking to get the most money possible for high-end items, it's probably not the most lucrative option. Often they must spend their money on your behalf while doing work for you. What does thredUP do with unaccepted clothes? I wrote this CS rep back explaining the problem was with the first Chase acct, that I disputed only part of the order and asked her what now - NO REPLY! 3.) I can see that boots from your bag My Clean Out experience wasnt quite what I expected, so I sat on these photos for a very long time while I considered how best to share this information with you. See insights on thredUP including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. If you decide that an item that isn't the right fit for you, we invite you to visit your returns page to process a return request. Seriously, worse than selling used books, and these . Service 589. 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. For example, imagine you are a business that hires others to help provide your services. Starting in July of 2021 I sent in a massive amount of designer clothes. Other 1099 copies are . Employers can be subject to an IRS fine of $50 or higher for failure to give you a 1099. Ive tried every way to reach them but there is NO customer service number or email address to contact them. Coinbase began submitting 1099 forms to the IRS and to individuals users in 2017. The contractor must be a partnership or individual. Items were unclean or stained Once I was looking for a statement brooch and noticed a plastic necklace from Marks and Spencer priced at a whopping $199! 3. 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 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 hope this clarifies it. Chanel Silva Please contact them if you can for me to restore my account with them and get my $10 that they owe me - interesting that they still send me emails for deals on the site! But my favorite may be thredUP's donation program for its ease and benefits. 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. Saw your post on #iwillwearwhatilike When a 1099 form does not match a W-2 filed by the IRS, the IRS uses it to track payments. I will never send in another kit and have alerted friends and family to do the same. You can log into your account to see them and even adjust the price although only up to the estimated retail price ThredUp has set. Push Continue. 40%. If you search around and shop total price you can probably find some really good prices even with the $7 shipping factored in compared to thredup Flaky-Somewhere1 2 yr. ago Oh well lesson learned I guess? all you can do is to choose from a menu of questions and click on pre-typed answers. You make a little and they take their cut for their hard work. I second your complaint, I would like to talk with a customer service person. I have no gift card and no money now. Which means that the hypothetical $50 blouse in my closetwill get an even lower payout than I initially anticipated. I wouldnt recommend it Anne. Sometimes larger quantities are offered such as 50 lb or 100 lb boxes. If you're going to receive a 1099 form from Robinhood, these will be issued in mid-February for the preceding tax year. But you still need to report the income on your self-employed tax return. Low value items clothes and accessories from less expensive stores (such as Kohls or Old Navy) or obscure brands that other people wont recognize. 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. Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) reports the sale of stocks, bonds, mutual funds, and other securities. I actually had these photos taken last July while we were still living in the condo because I wanted to feature thredUPas a unique website that helps you earn a little unexpected cash (the thought of which greatly appealed to my personal finances). -Packages may be delivered by USPS. Funds converted to gift card without my knowledge. Like many clothing retailers, ThredUp saves some of its biggest deals of the year for Thanksgiving weekend (Black Friday to Cyber Monday). This suggests a possible upside of 227.3% from the stock's current price. 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. In general, ThredUp collects a higher commission on lower-priced items than it does on more premium items. 1099s are information returns, and often the person or company filing them does not withhold taxes from these types of payments. Returns 427. When the business reports other income, such as rents, royalties, prizes, or awards paid to third parties, it uses Form 1099-MISC. Yes. They DO everything for you. Done. i am trying to contact somebody to correct that, but there is not a single phone number on the website for the customer service and the 'chat' function does not work. Maybe you have an even better tip to turn your gently used clothes into cold, hard cash. Every year, we send a 1099-G to . Have you tried selling your clothes as a bundle on Ebay? Form W-9 has been described as the employers best friend because it calls for the vendor to supply the information the employer needs. A complete refund and no more run around! DO NOT SELL TO THREDUP. I smell a giant rat. Since I opted to forwardthe rejected items to charity, that is where this dress and many others, ended up. ComplaintsBoard.com is a leading complaint resolution website on the Internet. In the past, ThredUp has given discounts of as high as 55% off. When you pay a corporation, you are not required to send it a 1099. Desired outcome: For our purposes we hit ORDER A FREE KIT. When I finally got one well after 10 days, then another, they were rather generic, none explained why my new orders were cancelled. Please note that we are unable to create prepaid labels for Alaska, Hawaii, Puerto Rico. Complete. A nerd and a perfectionist fall in love. I saw 2 items posted. Copyright 2023 - Powered by Genesis Framework & Wordpress - Designed by Bellano Web Studio - Log in. And that dread led me down the rabbit hole of fantastic services that will essentially do all the legwork for you. My order was delivered, but on the threadup site it still shows as 'in transit'. It was a lot.). 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. i would like to talk to the customer service representative. They were accepted and then instantly cancelled. No it aint quick. I just decided to sell to threadup for the first time. Please try again. If you want a guarantee that it will be within one week, you can opt for it by agreeing to $16 being deducted from your earnings. 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. I like it and it is nice to get alittle something back with all the money on clothing. 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. Emailed them a second one because they hadn't answered the first. ThredUp takes care of the photos, the selling, and the shipping. With the credit or let my daughters shop with the credit. 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. Despite having a type-A personality, I wouldn't call my closet particularly well-organized. So as a freelancer, or independent contractor doing work for a business, you get a Form 1099-NEC. Desired outcome: We are so glad you stopped by. Despite these occasional fuck ups on pricing, overall ThredUp is a bargain hunters dream. But what if you do handyman work for your neighbors business, Main Street Realty, LLC, and the business pays you $5,000? It is minimal to the extreme. You do not issue 1099s to vendor corporations. Its beyond me how they have such a huge amount of stock! Every time I visit the thredUP website, I see discount codes that invite me to save 40%. The items that didnt pass ThredUps rigorous inspection would be donated to charity. This does not drive our decision as to whether or not a product is featured or recommended. Customer Support" As mentioned, thredUP only accepts around 40% of the clothing received in its clean up kits. Payments of less than $600 Here's the cost breakdown: Price: $50. NEVER AGAIN :(. ORDER #XHP741U5I5K9 Depending on what your local upcycling options are, you may earn more by bringing relatively high-end items to a Buffalo Exchange. thredUP's Return Policy In any case if you know your stuff and do your research, you shouldnt get ripped off. freelancer or independent contractor less than a total of $600 for the year, you are not required to send them a 1099. ThredUP has no customer service phone number and if you click on Chat and Email on their site, Chat never opens. The 1099 is issued to the payee and also sent to the IRS. refund return amount to my the credit I used for my purchase. 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. To qualify for a refund, all items must be in the same condition in which you received them The 1099-G form is used to report taxable benefits when filing with the IRS for anyone who was paid unemployment benefits or Alternative Trade Adjustment Assistance payments during the calendar year, January 1 to December 31. 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. This set off a red flag in our system which caused it to cancel the orders after they were placed. reports the sale or exchange of real estate. Thanks for that love xx. 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. Those platforms supply the required information to the IRS. to me I would like my money sent via the paypal I have set up through their website. 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 feel they grew too large to handle the amount of clothes coming in and their customer service definitely got worse. The men's rescue box is $50 for a 10 lb box. Helpful (1) Vicki B. on 9/26/15. Lesson learned! The commission scale the company currently uses is as follows: For items priced at $5.00-$19.99, Thredup takes a commission of 85-95%. determining whether someone is an employee or an independent contractor. 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. 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. For the last year, I've spent more time trimming the fat going through my small New York City closet, packing bags, and schlepping clothes in Ubers and city buses all across the city to sell or donate than probably any other activity. 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. For a failure to issue a 1099-NEC or 1099-MISC, the IRS penalty varies from $50 to $270 per form. If you wish do donate your clothes without a payout, the kit is free (but FYI, you dont get a receipt for tax purposes). thredUP has a consumer rating of 3.17 stars from 5,867 reviews indicating that most customers are generally satisfied with their purchases. Then again, thredUP might not be the gold mine that it sounds like. To curate a thoughtful & cohesive wardrobe - where their clothes, shoes & handbags transcend any occasion or season. To power this marketplace, thredUP built an infrastructure that has recirculated 100 million unique g. Learn more Jobs We were not able to detect your location. Payors of 1099s need to know when they are required to file a 1099 and when they are not. they closed over the holidays and I couldn't start a return--now they won't let me return my order. For example, you are a self-employed handyman. Benefits information above is provided anonymously by current and former thredUP employees, and may include a summary provided by the employer. For the 2020 US tax season, Coinbase will issue the IRS Form 1099-MISC for rewards and/or fees through Coinbase.com, Coinbase Pro, and Coinbase Prime. Step 1: After I registered on the thredUP website, I was mailed a nice large bag to place my gently used clothes in. The Sloth. However, if they perform all of their work outside the US, you are not required to issue the 1099-NEC. It may be something silly like the clothing is too old. I contacted customer support so they could look into it. So angry that I am being treated this way, after being a long-time seller and shopper with thredup. In my area if I sell to Platos Closet they check the tags to see how old the item is and if its older than about 3 seasons they dont take it even if its in perfect condition. Mail your kit Once you have filled up your kit, just place it in the mail using the prepaid shipping label. Who knows? It also reports your employer contributions to things like the Social Security tax. You must issue a 1099 when you pay a vendor more than $600 for the year. So if you are paying your babysitter, gardener, or painter, you do not have to file a 1099. Which means that they take unused clothes, and sell them for a profit. Awful experience! As I mentioned earlier, I emailed them questions. Perhaps Im overly suspicious it simply does not up add up that so many of my garments werent accepted. You never know the bad policies of a site until something goes wrong. 10. The person or company sending you the money is responsible for filing a 1099 with the IRS and sending you a copy to file with your tax return. And thats alright by me. I went to cash out and was shocked to see my balance of over 1k had disappeared. ARE INFLUENCERS PART OF THE FASHION PROBLEM? These boots were worn only twice and were in pristine condition. For example, imagine you are a business that hires others to help provide your services. Send any items that fit the current season and set non-season items aside to ship at a later time. When a company hires an employee, it files a W-2 with the IRS and shows. The Goody Boxes had the advantage of delivering free shipping and a bundle of clothes to kickstart a capsule or seasonal wardrobe. Whenever you have an issue with your order, we recommend reaching out to us directly and we will be happy to make it right for you and refund it if necessary. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. No, not unless you pay for the option, which is $10.99 (April 2020 pricing). And no you cant add your own description like Ebay or Vestiaire Collective. Check your email for promo codes and sale announcements. They do all the heavy lifting by listing photographing, marketing, and handled the commerce of your items. Out of the fifteen, two didnt sell so they also went to charity. Its gorgeous and in perfect condition. If you use a barter network, you should receive one from them, also. Boxes are not necessary. reports information to the IRS when companies pay dividends or interest. The stuff they rejected. [protected]@verizon.net. In truth thats thepoint as well as the problem with ThredUp right there,in a nutshell. Coinbase reports your cryptocurrency transactions to the IRS before the start of tax filing season. Access your favorite topics in a personalized feed while you're on the go. Grab a coffee and stay a while. We inspect, photograph, list, and ship items for you. I really dont want to believe anything underhand is going on but its seriously odd how they determine whats worth selling. When does Robinhood send 1099? Yes. You actually have to pay the site to accept your clothes. You can find them in the tax documents section of your Robinhood account. I have also attached photo of the tracking # of package being returned to Thredup. As you can see, the rules can be confusing - and sometimes far from clear cut. 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. Original shipping charge is not refunded when returning items We operate independently from our advertising sales team. You won't need to find a bag or box, and aside from the actual act of going through your closet, all the work is done by a couple of clicks online. Fill your bag with your carefully selected items. I alsoneed to trim down my clothing possessions to make a little closet space for the baby. Please note: Shipping for Hawaii, Alaska, APO/FPO/DPO, Puerto Rico, US Virgin Islands, and Guam take up to six weeks in . So frustrating! I sent emails and was told I would have to wait 7-10 days for a response. Im sure they will be relisting the defective pair as well so as to sell to another sucker, assuming I ever do get the email. Thank you for your excellent field work, detective! Basically, you send ThredUP your gently used, brand-name clothes. 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. If it looks like you have to pay for a label, just search "Give Back Box print free shipping label" on Google or simply click here. Use the instructions in the link below and when asked if you received a 1099-B, answer NO. As a Coinbase.com customer, you'll receive a 1099 form if you pay US taxes and earn crypto income over $600. Im sure I wouldve gotten more by just throwing everything in the trash. Im also going to address the elephant in the room and point out that I am most definitely not pregnant in these photos. as well as other partner offers and accept our. I would like my money sent via the paypal I have set up through their website, Refund not issued to my credit card as stated in your policy, refund return amount to my the credit I used for my purchase. You Have to Pay thredUP to Process Your Clothes There's one more thing you need to be aware of before you attempt to sell your clothes on thredUP. 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. Now lets break for a short video so you get an idea of the type of pieces Im referring to. Thank you for reaching out! Currently, there is no expiration date. I combed through their website and there is NO mention of this policy. 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. Said it was delivered on Aug 31at 2:53pm. Thats the risk you take by giving them carte blanche on your listing. I have used ThredUp for several years and had good experiences when they first got up and running. Learn more. She would have bought these from me, but she already has them. And it was impossible to see this in any pictures by the way. I returned merchandise, it was in bad shape, thredup is stealing clothing & money from consumers, My bag of clothes, purses and shoes Bag#: B2BAC-KG637, 16 years' experience in successful complaint resolution, Each complaint is handled individually by highly qualified experts, Last but not least, all our services are absolutely free. Theres one more thing you need to be aware of before you attempt to sell your clothes on thredUP. 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. An SSA-1099 is a tax form we mail each year in January to people who receive Social Security benefits. Before you even think of shipping your clothes to thredUP, you need to come to terms with the fact that thredUP is a for-profit business. They have overhead costs like warehouses, employees, shipping supplies, and maintaining an extensive website. Desired outcome: A builder is generally considered to be a contractor, and payments to contractors are not reportable on a 1099 (with a few exceptions). reports the distribution of $10 or more of retirement benefits from pensions, annuities, or other retirement plans. If you want to get in touch, please send an email to mleighton@insider.com, or send a DM on twitter to @maraleighton. Which payments are exempt from having to issue a 1099. Here is why. Had a few others say the same xx. There are also a few other programs that reward you for cleaning out your closet, and a few that make the process as easy as ordering a bag online, filling it up at home, and scheduling a pickup. Next youll receive notification of your items going live on their site. Your experience is exactly what I feared might happen after I read how they work. The IRS has a variety of 1099 forms to cover all of these and other scenarios. Our 1099 filing software makes it simple to create, issue, send and e-file your 1099-NEC, 1099-MISC and more. Consider the wellbeing of who made our clothes & say no to fast fashion. In that case, you must determine if they are employees or independent contractors. Desired outcome: When you buy through our links, Insider may earn an affiliate commission. Required fields are marked *. Consumers satisfied with thredUP most frequently mention great condition, good quality and polka dot.thredUP ranks 3rd among Used Clothing sites. A 1099-Bit is not required to enter the stock sale and associated capital gains. I purchased this box on July 5th. Signing Up For ThredUP My Hunter boots were not even listed, they were stolen the minute they arrived. I know, bear with me Heres how it works step by step. What happened to the rest of my things? When you pay a corporation, you are not required to send it a 1099. We highlight products and services you might find interesting. Have you tried to sell clothes onThredUP? I shipped a whole bunch of clothing in a pristine Givenchy tote bag, and the tote bag was never listed for sale. Coinbase Tax Resource Center. (See attached photo) This will surely increase the credibility of your complaint. 1099s need to be issued to single-member LLCs, partnerships, sole proprietors, unincorporated contractors, and freelancers if you paid them more than the yearly threshhold. What is blatantly clear from this 15 second story is the condition, quality and relevance of the items I sent. You might receive money as an independent contractor, dividends from stock you own, interest income, retirement income account payouts, or other non-employer payments. Form 1099-MISC and Form 1099-NEC are similar but have one main difference. He must send a 1099-MISC form to the developer. WAIT FOR AN INCREDIBLY LONG TIME.It took ThredUp two months to process my bag. Obviously the reasonit took so long for me to publish this post is because of the ridiculous amount of time it took ThredUp to do their thing. "I blew it; I made too much money," she said. Their TDUP share price forecasts range from $2.00 to $13.00. Since I financed this purchase wit Afterpay, I contacted them for assistance. DROWNING NOT WAVING IN SINGLE-USE PLASTIC, CRADLE TO CRADLE DESIGN MATTERS TO THE CIRCULAR ECONOMY. I have been stashing away some of my better brand, lightly worn clothing for resale and was considering ThreadUp. I purchased a pair of slides made in China and they were described as "44-45=12US women". ThredUP is the most convenient mass upcycling program I've found for city dwellers without a car. If you use a barter network, you should receive one from them, also. If you plan to use a vendor and pay them more than $600 in the year, the best business practice is to have them fill out a W-9 before doing any business with them. View Transaction History * We welcome you to send back multiple returns in one package, as long as the return slips are all included. We do not have access to detailed information, but the reasons provided were: Definitions. 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. The penalty amount depends on how long past the deadline the business issues the form. Michelle Tyler blog uses its own and third party cookies. Value 630. But this is not what happens when you do work for an individual that is not in a trade or business. I would like a response to my inquiry! i would like to talk to the customer service representative, Read full review of thredUP and 1 comment, I would like to be able to use the store credit or have the money returned to my account. The IRS penalty for failing to issue a 1099 is now $250 per form. If your total payments are less than $600 for the year, no 1099 is required. Giving them away to someone you know is really nice. Even worse, your clothes will not automatically be returned to you if ThredUP does not accept them. The first year she used Mercari, Heltke didn't know that, and she received a 1099 on which she owed taxes. It was only 30 days past the year so I asked them to convert back and they said it's not possible. Someone is making something somewhere. Their follow-up on clean out bags is terrible. Twice in fact, but never had a reply. Form 1099-K Frequently Asked Questions. Learn how your comment data is processed. Each garment in the list is linked so you can track its sale on the site. -$14.99 flat rate. I believe this is just a fraudulent scam. Back in August 2022 someone hacked my THRED UP account and made purchases in the amount of $1,185.00. I usually get about $40 a box and I then treat myself to something special like a nbtand name jacket or dress.