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why is ebay adding the customer taxes to my total sales amount?

I had my total sales at $399.00 and then sold a 2023 5 Oz silver libertad coin for $179.00 plus $4.21 for shipping which came to almost $10.00 total with insurance. That still should have put me just under that $600.00 threshold for filing 2025 taxes, but then I see eBay added in what the customer paid for in NY taxes ($20.35) which put me at $600.88. I think that customer taxes should be separate from my total sale numbers. I never had possession or use of those tax funds. Now I will have to pay a tax man to do the 1099 form for me which is what I didn't want to happen in the first place. Can anyone please explain to me why eBay does this and how it helps the seller? 

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why is ebay adding the customer taxes to my total sales amount?

Where are you seeing that amount?  If you're nearing the threshold eBay will ask for your information to send a 1099-K, but taxes will not be included on that form.  Why do you care if you meet the threshold or not?  You know that's not a threshold for filing taxes, right, only for receiving a form?

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why is ebay adding the customer taxes to my total sales amount?

"That still should have put me just under that $600.00 threshold for filing 2025 taxes"

The $600 threshhold isn't "for filing taxes," but for receiving a 1099K form.  Whether you receive a form or not, you are obligated by law to claim your income! 

 

"why is ebay adding the customer taxes to my total sales amount?

Ebay charges FVF to the entire amount of the payment that the buyer makes to you. 

 

When you file taxes, you claim (as income) the full amount of payments. Then you deduct your expenses. 

albertabrightalberta
Volunteer Community Mentor

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why is ebay adding the customer taxes to my total sales amount?

I dont understand taxes today and the 1099 seems hard. I worked for 40 years and did taxes every year until a doctor screwed up my back so I have been out of the loophole for a while which was the reason I started selling on eBay. But at 69 I am ready to just watch my grandchildren grow up.  Thank you for the information I really appreciate it. 

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why is ebay adding the customer taxes to my total sales amount?

You reached the threshold at the first dollar, not the 600th.

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why is ebay adding the customer taxes to my total sales amount?

"That still should have put me just under that $600.00 threshold for filing 2025 taxes, but then I see eBay added in what the customer paid for in NY taxes ($20.35) which put me at $600.88. I think that customer taxes should be separate from my total sale numbers."

A couple points:  
YOU, as a taxpayer, are expected by the IRS (and probably also by your state) to list all your income in the Income section of your 1040 tax return form.  Whether you receive a 1099-K form from eBay or not.  

The "$600.00 threshold for filing" applies to Marketplace Facilitators such as eBay.  Marketplace Facilitators have that requirement.  Apparently, your state required a 1099-K form because your eBay sales exceeded $600.00, which is a threshold set by your state.  

In general, though, for IRS purposes, any sales taxes paid by your eBay buyers will not be included on the 1099-K form. 

 

The only reason I can think of is that your state (New York) requires the inclusion of sales taxes paid by your New York buyers on the 1099-K.  (I can barely keep up with my own state, California, and have no idea about other states' taxation laws.)  

Unless an expert on New York state income taxes comes along to answer this post, I do really think talking with a "tax man" is your best course of action.  

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