How do I find the numbers to be reported to the IRS?

[honeybadgerposter]

As a very casual seller now that we've downsized and moved to senior housing, I was going to try to stay below the $600 mark to avoid paying my accountant to fill out another form. I think eBay will report total sales (before shipping labels and eBay fees), less tax they collected. Is that correct? I was going to stop selling the odds and ends I still have to not go over $600, but by my calculation just now from eBay's monthly reports, I am already at $602.58 as of the end of July. So looks like I'll get a 1099 anyway. By the time shipping and supplies are removed I won't owe tax on the personal items I've sold, but I'm pretty sure it will cost me money to have my accountant review the documents and my estimates of what the 30 year old knickknacks cost new.

[evry1nositswindy]

Yes, it will be a gross total.  Not sure your situation, but I fill out a Schedule C.  You can deduct fees, postage, shipping, supplies, cost of goods, etc.  I do it myself and it isn't hard.  If you already have someone, it will be even easier!

The 1099 will give you a gross.  You will find your postage total under reports (or from your receipts if you keep them).  Your selling fees will be spelled out as well.  Click around under payments and reports to see what best suits you.

[gkn29]

Go to payments >  reports, then click on "tax invoices"

[mtgraves7984]

Cost of goods will be hard to determine. Don't forget to deduct those selling fees, too!

[monroe67]

eBay will send you a message after you surpass the $600.00 reportable amount this year, asking for your complete Social Security Number.  I think you are also asked to verify your address and checking account info.  I got that message about a month ago, I think.  

Continue to keep good records when you buy supplies, when you buy postage, and keep track of mileage to and from your post office. 

As for your accountant having to fill out another form -- when tax time rolls around in Spring of 2023 -- on the federal level, the amount shown on the 1099K is just filled in on one of those many lines on the front of the 1040 forms where we're all supposed to report every bit of money that came in ("income") for the year. 

Maybe the Schedule C might be considered "filling out another form".  That's the page where you deduct expenses like envelopes, boxes, mailing labels, postage, mileage, electricity, printer ink, etc., etc.  Really, though, for an experienced accountant, completing a Schedule C should not be a terrible burden.  

[honeybadgerposter]

"eBay will send you a message after you surpass the $600.00 reportable amount this year, asking for your complete Social Security Number. I think you are also asked to verify your address and checking account info. I got that message about a month ago, I think." 

Thanks so much @monroe67 ! I'll be on the lookout for this.

[onefootflipper]

If you are selling old personal items you can use market value as cost of goods sold and a great way to determine that is just to use the price the item sold for on ebay. 

Schedule C is not difficult even for non-accountants. If all you are selling is old personal items then it is even simpler since you can skip even looking for most of the things on it that would reduce the income since you will be at a loss just from the market value as cost of goods method alone.