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Reporting of income to the IRS.
In November 2024 the IRS came out with a ruling of the reporting of third party income on form 1099-K.
To this day, I have not seen/heard anything from our Ebay that needs us to exist.
We have income, but we also have expenses to apply against that income. How do we report the income but also how and where do we apply the expenses to arrive at a NET income?
Form 1099-K reports the GROSS income. The EBay add/promotion fees and selling fees plus the shipping costs and any sundry expenses have to be deducted. So Please EBay, how about a little support/help for the people that are the reason you are still around.
Regards.
2 comments
comics-scifi-collectibles
Mentor1 year ago@jycroix. In addition to @wooden_flower s great advice...
I use the financial report to help with calculating the shipping and other expenses. I download it as a PDF as it's much easier to use that way.
https://www.ebay.com/mes/transaction-reports?q=statement
You also should talk to your accountant about how you can deduct your cost of goods and possibly mileage to the Post Office.
wooden_flower
Mentor1 year ago@jycroix
ebay can’t help you prepare your taxes, but they have partnered with TaxAct as a suggested tax prep program.
The 1099k has been around since tax year 2011, but it is only a reporting tool. You have the responsibility to report your earnings and pay tax on your profit with or without a 1099k.
If you have not been filing schedule C in the past, you should be looking at it now, given your volume of sales, assuming you are selling to make a profit. The IRS has a guide to schedule C to help you identify deductible costs and how to complete the form.