eBay

reelworks · ‎02-11-2023

I all but quit selling early on in 2022, with only a dozen or so minor sales all year.

I get the 1099K from eBay and they have a total of $15k in total sales for one account?

Even with adding in shipping, my totals are no where near that. Considering there hadn't been any sales since

April, and to that point I had only sold 11 or 12 items, I shut it down and went elsewhere.

I sold 91 items in 2020, and 33 in 2021, but my totals haven't come close to what they have showing for 2022 combined? I show $561 in sales, and $135 paid in shipping for 2022.

Where do they get their totals?

The form clearly lists month by month totals, and there are totals for months I didn't sell here at all on that account, (any account for that matter).

They show 17 total transactions at over $15k, I was selling used bike parts, all small items that sold for $10 to $75. Shipping was never over $15 per item, most was under $8.

The amount this will affect my taxes will offset any amount I made here during that period. I started selling here again in 2020, since then the overall total is no where near the amount they show for 2022 alone.

dnasilver · ‎02-11-2023

If the amount is in error as claimed, how can a wrong amount effect your taxes?

ittybitnot · ‎02-11-2023

how can a wrong amount effect your taxes?

@dnasilver

I would presume in the same fashion as those people that got sent the 1099s that never sold anything on eBay ever.

luckythewinner · ‎02-11-2023

@reelworks wrote:
I get the 1099K from eBay and they have a total of $15k in total sales for one account?
Even with adding in shipping, my totals are no where near that.

A 1099-K shows gross payments processed, not sales.

I believe eBay provides a 1099-K detail report that shows you exactly which transactions were included on your 1099-K.

If that does not match your 1099-K, you will need to contact eBay.

It is possible that someone else on eBay is using your social security number, but I believe that would show up as a different 1099-K for the other account.

valueaddedresource · ‎02-11-2023

@reelworks wrote:
I all but quit selling early on in 2022, with only a dozen or so minor sales all year.
I get the 1099K from eBay and they have a total of $15k in total sales for one account?
Even with adding in shipping, my totals are no where near that. Considering there hadn't been any sales since
April, and to that point I had only sold 11 or 12 items, I shut it down and went elsewhere.
I sold 91 items in 2020, and 33 in 2021, but my totals haven't come close to what they have showing for 2022 combined? I show $561 in sales, and $135 paid in shipping for 2022.
Where do they get their totals?
The form clearly lists month by month totals, and there are totals for months I didn't sell here at all on that account, (any account for that matter).
They show 17 total transactions at over $15k, I was selling used bike parts, all small items that sold for $10 to $75. Shipping was never over $15 per item, most was under $8.
The amount this will affect my taxes will offset any amount I made here during that period. I started selling here again in 2020, since then the overall total is no where near the amount they show for 2022 alone.

@reelworks you mention multiple accounts so I'm assuming the account with the mystery sales is not the one you are using to post here, also assuming you still have access to that account even though you stopped using it for selling?

Based on what you're describing, I'm wondering if it's possible a third party gained access to that account and made sales without your knowledge.

I've seen many reports of account hijacking being used for fraud, here's one from the UK just for example but it happens in the US as well:

https://www.grimsbytelegraph.co.uk/news/grimsby-businessman-facing-ruin-after-6228441

As @luckythewinner mentioned, some people have been receiving false 1099-Ks because fraudsters used their stolen ID info to set up accounts on eBay without their knowledge, but that doesn't sound exactly like what happened to you since the account in question does belong to you and you did make at least some legitimate sales on it.

That's why I'm thinking it may be more your account was compromised and used by a third party.

Bottom line - in order to figure out what's going on, you need to sign in to that actual account and view the payment transaction reports to figure out what was sold, when it was sold, and for how much.

https://www.ebay.com/sh/fin/reportslanding

If you find there were sales made that you don't recognize and you suspect fraud, you'll need to contact eBay using this info in this link - it should get you to the trust and safety department.

https://www.ebay.com/help/account/protecting-account/get-help-hacked-account?id=4196

You'll also want to contact the IRS for guidance on how to handle those fraudulent sales if that ends up being the case.

https://www.irs.gov/faqs/irs-procedures/reporting-identity-theft

reelworks · ‎02-12-2023

If someone sold an item without my knowledge on my account, wouldn't that show on my selling page?

I'd have seen the item listed, I'd have seen the item as sold in the history.

I see nothing like that.

What I do see is on one item that I sold for $87 via an auction, and the calculated shipping was $38. The item went to the UK, I'm in the USA. It was the only item to sell that month, the total seems to include the $146. ebay charged to ship it to the UK.

One item that sold for $218, with $16 shipping, was also the lone item in another month, it went to a US buyer.
I had listed it as an auction with a $425 BIN, but that went away once the first $199 bid was placed in the last day of the auction. The total for the sale in the report that month shows as the taxed amount the seller paid from CA. ($475.22 with $36 and change in sales tax). I collected only $178 and change after fees. Those two months were easy to track as there was only one sale per month.

(Yes, it was on another account, which is still active but I've not listed anything since last spring). I completely closed out all sales in July after not so much as a single bid or watcher appeared in two months.

I ended the sales and let the account go dormant.
In 2020 and 2021 I sold far more but got no 1099K in those years. However, even if I add up 2020, 2021, and 2022, I still don't get to the total in the 2022 report. Maybe half that amount at best.

When I inquired about the 1099K I was told I didn't have enough sales to require one.

When I first saw it I thought maybe they had somehow gone back to 2020 and included the surge of sales I had that fall but even that don't add up.

We should not be paying tax on shipping, (let alone selling fees).

How can I get this itemized report?

All I have is the monthly reports I printed out for the months I did have sales, those totals match what I collected and don't come close to the total on the 1099K.

I'm a retiree selling off things I've collected, inherited, or bought over the past 50 or so years, most if not all items sell for far below what they should these days, all are a loss regardless of any estimated or collectible value, which seems pretty much non existent these days.

I have no problem paying taxes on what I collected but this crazy number is putting me in the next tax bracket and will make me owe more than I actually collected.

valueaddedresource · ‎02-12-2023

@reelworks the 1099-K includes all amounts that were paid to you as the seller, including shipping. It is up to you to then include your expenses and deductions when you file (what you paid for shipping labels, eBay fees, cost of goods etc.).

All of that is something you will need to seek qualified accounting or tax expert advice on - but if your issue is that eBay included the shipping in the amounts, that would be correct for what the 1099-K is supposed to report and not a mistake on eBay's part.

State sales tax that eBay is required to collect and remit under marketplace facilitator laws will *not* be included in the 1099-K because it was not paid to you as the seller.

If there were any states in 2022 that you as the seller were required to collect and remit sales tax for, those amounts would be in the 1099-K.

You said the 1099-K you received had some months listed with sales in which you did not make any sales, which is what made me think it's possible someone accessed your account and sold items without your knowledge.

You are correct, those sales would be listed in the account somewhere, which is why I suggested downloading the transaction reports and provided a link to where you can find that report.

The other possible explanation is timing - for the 1099-K, eBay uses the payment settlement date, which may be 1-2 days after the payment was initiated. For example, if a sale is made with a payment initiated from the buyer on January 31, that payment may not settle until February 1-2 and would then be listed in the February total on the 1099-K.

In order to sort out what is really going on with your account and whether the amounts are accurate, you'll need to download the 1099-K details report for that account, which can be found here (you'll need to be logged in to that specific account to get the right data):

https://www.ebay.com/sh/fin/taxdetails

reelworks · ‎02-13-2023

I found the Detailed report.

Some item Gross amount don't match. On many, I see no way to come up with the totals shown.

One item that sold for $111, and 14 shipping is showing as $56 gross collected. An item that shows as sold for $14, and $5 shipping shows as $44 gross.

The GROSS totals for all 12 months don't come anywhere close to the number on the 1099K form.

I do have an itemized list from my bank that received all ebay payouts and the total of ebay payouts was only $739.

I think ebay should only be listing the totals of what they paid out on the 1099K.
The shipping, fees, and taxes were never monies received.

$739 won't affect my tax bracket, $15K will, it changes my taxed rate from 12% to 22% and makes me owe $4,700 in taxes. If I had just thrown out the items I sold, I'd be ahead of the game.

The problem is I never collected or received anywhere close to the amount stated on the 1099K. Even if I include the shipping and fees.

yuzuha · ‎02-13-2023

@reelworks wrote:
I think ebay should only be listing the totals of what they paid out on the 1099K.
The shipping, fees, and taxes were never monies received.

Okay, so the problem here is that you're not understanding what a 1099K is and what it records, not that the amounts are wrong.

A 1099K includes all of the money that was PROCESSED, which includes shipping and fees. The shipping and fees are all deductions that you take when preparing your taxes to show how much of the money that you received was not actual income.

kalyoth · ‎02-13-2023

You will need to reach out to ebay & request an adjusted 1099. You will need to back up your legitimate sales proceeds processed through their managed payments network for your social security number doing business during 2022 on ebay for all accounts with that information. Not impossible but not easy either.

luckythewinner · ‎02-13-2023

I think ebay should only be listing the totals of what they paid out on the 1099K.

What information is included in the 1099-K was determined by Congress when the law was passed.

eBay does not have any discretion in the matter.

catacomb_comics · ‎10-17-2023

For me it's 14k it's outright highway robbery. How can you justify selling 30k worth of used goods and you they steal almost HALF? WHAT?? I'm done selling on eBay I know it's not their fault but there is no point anymore and anyone that sells think about how much money they are stealing off of you.

kh-gary · ‎10-17-2023

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread HERE if you wish to continue to discuss this topic.

Thank you for understanding.