1099K numbers not matching financial statements

[wowza65]

Hey there! Anyone else having a problem reconciling the 1099K amounts to the financial statements? I don't know where Ebay is getting the amounts shown on the 1099K. 

[redmodelt]

The 1099K should show the total monies that passed through less any sales tax paid by the buyer. So that would include item selling price and shipping before fees that the buyer paid. 

[wastingtime101]

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

You can go to this page and generate a CSV report and you'll see what's counted on your 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

[stainlessenginecovers]

The short/simple reason they don't match is the

Monthly 'gross' shown, is SALES that customers have purchased and paid for.

The 1099 shows the amount of $$ that they have SENT you.

So, sales done (around) Dec 28,29,30,31 of 2022 will show up on the 1099 for 2023; as well as sales done on Dec 28,29,30,31 of 2023 may NOT show on the 1099- all due to the time variance between

Sale Completion and 'processing/sending' to you. 

The same for EACH MONTH as the 1099 will show something different than the 'Gross Receipts' shown on the Monthly Statement. 

It all works out as the years roll on, for me for example- last year a bit 'over' was reported from my books but this year a bit 'under'. 

[dbfolks166mt]

     There are three sets of numbers involved stainlessenginecovers  mentioned the two that eBay has and why there is a difference. The third is your own set of accounting numbers. Depending on the type of accounting you use those numbers may or may not match up with the eBay numbers. I utilize accrual accounting for my own books so my monthly numbers always match up with the eBay monthly numbers since those reflect sales at the time they take place regardless of when the cash flows. Initially my own records did not match the 1099 since the number is based on when the cash actually was deposited in my account. 

     Some sellers may have a significant difference if they had large dollar sales in the last 30-45 days of the calendar year and eBay has those funds on hold or as stainlessenginecovers mentioned the funds have not been deposited from end of the month sales and they rolled to the following month from the 1099 perspective.