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1099-k - Self employment?
Okay so I sold a handful of items through Facebook and received payment through Paypal G&S. I received a 1099-k. Total was over $600.
I sold around $5.5k on ebay and have my 1099-k for those sales. What Looks confusing is when entering in my income for taxes after my W2, there is a section noted as Income from 1099-k's and then also it looks like a section for Self Employment.
I initially entered in all of them under the income from 1099k section ( one for paypal and one for ebay). What I am confused about is do I enter those again under the self employment section in order to enter in info for schedule c , like expenses and ebay fee's? I feel as if I am either going to enter these items in twice or I should just be entereing them all in under the Self Employment section.
The first section I entered them in let me upload them. When I went to look at the self employment section, I had to enter the info in manually and in the end it showed an additional, identical line item in the 1099-k section I had enteres in prior. Hope that makes sense.
shipscript
·2 years agoIn very broad strokes, if you are selling to make a profit, or operating as a business (with income and deductible expenses), the "self-employment" tax is your contribution to Social Security and Medicare. If you are selling personal items, you wouldn't be contributing to an employment tax and might qualify for capital gains treatment of any profits.
I would recommend consulting a tax professional to find which method would benefit your situation.
eBay has partnered with TaxAct to help smaller sellers like yourself.
https://community.ebay.com/t5/Announcements/eBay-partners-with-TaxAct-for-another-tax-season/ba-p/34222371
killariz21
OP2 years agoProbably should mention I sell sports cards and listed them as Personal Item per TurboTax suggestion.