1099K Not Matching Sales review

[frontroguy]

Wondering if someone could point me in the right direction. 

I knew I was getting close to the 20k limit so I paused my store.  My sales report had me at just under 20k, but I got a 1099 indicating I was just over 20k. Any ideas for me?

Was really planning on staying under that threshold....

[wastingtime101]

Hey. I'm not sure what difference the $20k threshold makes. The threshold is there to determine when eBay legally has to send you a 1099-K form, but it has no bearing on your responsibility to report your income to the IRS. 🤷

That said, you can go to this page and generate a CSV report and you'll see what's counted on your 2023 form 1099-K at the transaction level.  https://www.ebay.com/sh/fin/taxdetails

"Your 1099-K Details report shows all the orders that factored into your gross amount of payments. The report also provides other details, such as transaction fees, which may be relevant when preparing your taxes."

There's a guide published here where you can further drill down and get reports for expenses and refunds: https://www.ebay.com/mes/taxguide?sh=true

Rundown on eBay 1099-Ks:
https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

[wastingtime101]

In addition: Minnesota has a $600 threshold, so eBay is required to issue a 1099-K once you hit that $600. It goes by whichever is lower between your state's law and federal.

[frontroguy]

What is the point of having a sales tracker, if 1099 is going to have a completely different amount? Do you know specifically if they are pulling from the same data?

[wastingtime101]

Please refer to the links I posted above @frontroguy . eBay reports based on payment processing date, not date of sale. The report options I linked to above will show you the details.

[frontroguy]

Thanks - wish that was a little clearer - but lesson learned!