1099K Question

[shellistoys]

Trying to make sense of the 1099K. Is the amount reported the total amount of the sale, or the amount of the payout sent by eBay?
More specifically - does the amount on the 1099K include ebay's transaction fee  or sales tax collected by ebay? And does the amount include shipping costs, or the actual payout sent by eBay after the seller paid for shipping?

[heckofagame]

It shows the total amount of processed payments for the transactions excluding sales tax.

[nobody*s_perfect]

It includes the buyer's total payment, except for sales tax.  eBay does not subtract any expenses such as fees, postage, or returns.

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

[shellistoys]

Thanks - just to clarify, the amount is the what the buyer paid, not what ebay disbursed to the seller?

So it sounds like I would just complete my Schedule C as I always did by listing total revenue and deducting ebay fees and shipping as expenses. 

[heckofagame]

Yes. And it sounds like you know what you are doing. 

[shellistoys]

Thanks - I used to sell on eBay full time way back when, and just jumped back in last year. I've got to say that I like a lot of the changes - integrated payments, integrated shipping, and the ability to run reports instead sitting and entering every single transaction into a spreadsheet or Quickbooks on my own saves a lot of time. The problem is that eBay doesn't actually explain HOW any of this works, and you need a pretty high level of computer literacy and understanding of business accounting to utilize eBay's reporting systems.

[99centstampsandmore]

ebay says "As Form 1099-K is an IRS information return, it includes the gross amount of all reportable payment transactions within a calendar year. This amount does not include any adjustments, for example, credits, discounts, fees, refunds, or any other adjustable amounts."

So if the gross amount does not include fees then it is already deducting the eBay fees and amounts collected for shipping? So we wouldn't be deducting these fees on our income tax?

[nobody*s_perfect]

The amount on the 1099-K is the total of the buyer's payments for the item, shipping and handling with NO deductions taken.  "This amount does not include any adjustments" means that eBay has not made any deductions from the total shown.  eBay does not deduct fees, refunds, etc.  

The report does not include the amounts that buyers paid for sales tax.