Is sales tax included on the 1099 k?

[fenryswulf]

I switched to managed payments in March or April this year so I have a 1099 k from both Paypal and eBay. I'm starting to work on Paypal and I see additions and deductions in the reports I downloaded for sales tax collected. I never actually saw any of this money but I want to know if this is included in that total on the 1099 k so I should deduct it or not? 

[babclassics]

For eBay managed payments 1099-K sales tax is not included in the gross amount if eBay collected it.  For PayPal I am not sure on that one.  Somebody will know and post that info shortly I would bet.

[newman151blue]

I’m not so sure about that, I’ve looked at the end of the year reports on ebay, and it looks sales tax is included in the gross amount they report to the irs. You can go to performance on seller hub, then sales, then create a report for the sales for the entire year, and you can clearly see that sales tax is included in the gross amount. 

[kensgiftshop]

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@newman151blue wrote:

I’m not so sure about that, I’ve looked at the end of the year reports on ebay, and it looks sales tax is included in the gross amount they report to the irs. You can go to performance on seller hub, then sales, then create a report for the sales for the entire year, and you can clearly see that sales tax is included in the gross amount. 

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The sales tax might be included in reports you get from Ebay, but won't be included on the 1099.

[newman151blue]

My gross amount on the ebay sales reports which included sales tax pretty much matched the gross amount that was reported to the irs on my 1099. Actually the amount that was reported in my 1099 was a  $1000 higher than the gross amount in the ebay sales report that included sales tax. 

[slippinjimmy · Accepted solution]

Sales Tax collected by eBay is NOT included.

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794#section3

[popblox]

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@kensgiftshop wrote:

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@newman151blue wrote:

I’m not so sure about that, I’ve looked at the end of the year reports on ebay, and it looks sales tax is included in the gross amount they report to the irs. You can go to performance on seller hub, then sales, then create a report for the sales for the entire year, and you can clearly see that sales tax is included in the gross amount. 

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The sales tax might be included in reports you get from Ebay, but won't be included on the 1099.

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The 1099 from eBay does reflect total sales, including sales tax. The "total sales" numbers from your eBay sales reports, which also include sales tax, should (more or less) match what you see on your 1099-K. 

[popblox]

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@slippinjimmy wrote:

Sales Tax collected by eBay is NOT included.

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794#section3

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Wow, well, this is a huge problem because my 1099-K for 2021 (as well as 2020) absolutely, definitely reflects the "total sales, including sales tax".  This is just for December, but all the months (for me) are this way. 

velvet@ebay jasmen@ebay 

Can you please confirm whether or not sales tax collected by eBay is included in the totals for our 1099-K's? Also, if it is and isn't supposed to be, how should we proceed?

[popblox]

Ignore everything I just said! This is the eBay explanation for what "total sales, including taxes" covers:

"Includes item price, shipping and handling paid by buyers to you, and taxes and government fees such as recycling fees collected by you or eBay. Returns and canceled transactions are reflected. Sales are counted only when the buyer makes the payment rather than when they commit to buy the item."

So, not sales tax. Glad I read that before I did my taxes 😫

[newman151blue]

https://www.valueaddedresource.net/ebay-sales-tax-1099-k/
Apparently  they don’t include sales tax that was collected and remitted by eBay, but if it was collected by a seller, then it would. At least that’s what the article says  and ask eBay on Twitter says sales tax is not included either on the 1099. I just don’t understand why the sales reports say otherwise.  

[jasmen@ebay]

Thanks for the tag @popblox happy to see you found the answer! If anything else comes up please let us know! 

[partempire]

I just called eBay concierge and they said that sales tax IS included on the 1099.

This is so frustrating.

[dbfolks166mt]

     The concierge gave you some bad information the sales tax is NOT included in the total gross on the 1099. If it is included on yours then eBay made an error in calculating your 1099. I have received 1099's for the past 3 years and sales tax has never been included. 

[lakeland_music]

Well that's a bit frightening.  How did you account for it?

[stainlessenginecovers]

@lakeland_music 

Although an old thread; that person was incorrect in what they 'thought' was on the 1099. The numbers may be different than what an eBay report shows and it is NOT the Transaction date, but the date 'payment is sent' to the seller. 

So- sales that occur on Dec 30/31 may NOT be on that 1099; but will be on the Following year. So, it just depends on what dates a person has sales. 

Sales Tax IS NOT on the 1099.