1099k show gross collected by Ebay including shipping, or minus shipping and fees?

[vikingsandpintos]

When the 1099k's get sent out in January, do they have a total of everything Ebay collected, including shipping and fees? Or just the net after shipping and fees? I was looking at my selling overview, and almost exactly have of what customers paid was taken out for shipping and Ebay fees. 

I know about IRS deductions, ect for tax returns. But I was starting my application in the Gov health care exchanges, and wasn't sure under estimated income next year if I will need to put a gross amount, or more of a net amount? 

Thanks!

[luckythewinner]

When the 1099k's get sent out in January, do they have a total of everything Ebay collected, including shipping and fees?

The 1099K includes the gross amount of all payments by the buyer, excluding sales tax.

"As Form 1099-K is an IRS information return, it includes the gross amount of all reportable payments within a calendar year, based on when funds settle to eBay, not necessarily when funds are received by sellers. This amount does not include any adjustments, for example, credits, discounts, fees, refunds, or any other adjustable amounts.

Additionally, Form 1099-K does not include the sales tax when it is automatically collected and remitted by eBay."

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

[evry1nositswindy]

Shipping, fees, refunds, etc are deductions you take when you fill out the Schedule C at tax time.  There are other deductions you can take too.  All come off the gross total reported on the 1099k.

[richard1rst]

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@vikingsandpintos wrote:

When the 1099k's get sent out in January, do they have a total of everything Ebay collected, including shipping and fees? Or just the net after shipping and fees? I was looking at my selling overview, and almost exactly have of what customers paid was taken out for shipping and Ebay fees. 

I know about IRS deductions, ect for tax returns. But I was starting my application in the Gov health care exchanges, and wasn't sure under estimated income next year if I will need to put a gross amount, or more of a net amount? 

Thanks!

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GROSS is just that. The TOTAL of ALL monies received. So, yes, it shows everything including shipping before any deductions for the actual shipping of FVF. 

Taxes on the other hand are based on NET. That is the gross less any and all expenses.

NET is what the government wants for "estimated income".

I'm guessing the biggest misunderstanding in most people's mind is that the total receipts are labelled gross income. In proper accounting terms it would be more accurate to label it as Gross Receipts. It may be money coming in but, for tax purposes, it is not "income" until all appropriate deductions have been made leaving "net taxable income". The IRS wants to see how you got to that number, but that is the only number the IRS cares about.

[caldreamer]

1099 includes (purchase price + shipping).  You must report "gross amount" as shown on 1099 to the IRS.    When you file as a "business" you can deduct expenses (EBAY fees, shipping expense, cost of goods, mileage, packing materials, office supplies, etc).   If you have a dedicated space that is used for storage or running your business you can also claim "home office expense" (percentage of your rent and utilities).

You pay income taxes on "net amount" after all expenses are deducted.

[monroe67]

"But I was starting my application in the Gov health care exchanges, and wasn't sure under estimated income next year if I will need to put a gross amount, or more of a net amount?"

Did you notice that none of the previous responses have touched on this question in your original post?  
This forum can be a good source of info for eBay-related questions and only eBay-related questions.  

Questions about which number you should use (gross or net) when figuring out your government health care exchange should really be addressed to your accountant.  OR you could look at the appropriate IRS Publication that might be helpful.    

[luckythewinner]

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@monroe67 wrote:

Questions about which number you should use (gross or net) when figuring out your government health care exchange should really be addressed to your accountant.  OR you could look at the appropriate IRS Publication that might be helpful.    

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The rules for government health exchange are not set out in IRS publications. They are set out in the government health exchange publications.

For instance, the "What income is counted" in the "Count income & household size" document on healthcare.gov says this:

The Marketplace uses an income number called modified adjusted gross income (MAGI) to determine eligibility for savings. It’s not a line on your tax return.

Your MAGI is the total of the following for each member of your household who’s required to file a tax return:

• Your adjusted gross income on your federal tax return
• Excluded foreign income
• Nontaxable Social Security benefits
• Tax-exempt interest
• MAGI does not include Supplemental Security Income (SSI)

https://www.healthcare.gov/income-and-household-information/income/

[gloryglorygifts]

I just called the health insurance hotline for you and the rep said that you put the Gross Adjusted income on the form. Meaning take that shipping and fees out of your gross figure.

I learn something new every day on here. I hope this helps.

[nobody*s_perfect]

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@gloryglorygifts wrote: ... you put the Gross Adjusted income on the form. Meaning take that shipping and fees out of your gross figure.....

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And also deduct everything else that would go on Schedule C as expenses, since AGI (i.e., Line 11 on form 1040) is based on the Schedule C line 31.

[gloryglorygifts]

No. This is for an insurance application not year end tax reporting. Different animal. 

[nobody*s_perfect]

But MAGI uses figures that are derived from your tax return.  The quote above says 

Your MAGI is the total of the following for each member of your household who’s required to file a tax return:

• Your adjusted gross income on your federal tax return"

[gloryglorygifts]

The OP is asking about the EBAY 1099 and what to include. I stand by what I say. He uses the net amount for the EBAY 1099 less shipping and fees.

The OP said they "know about IRS deductions, etc. for tax returns" and ONLY asked about the ebay 1099. That tells me that they know how deductions work. The OP is estimating income, not reporting income already made.  They have a ballpark from last year for anything else that they need to estimate for this year.

This might be of help vikingsandpintos: https://www.healthcare.gov/income-and-household-information/how-to-report/#dontknowagi