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tax for 1099K
Hello,
Thanks for the help here! I'm fairly new to eBay and in 2022 sold about $2k. Since this is more than $600 allotted by IRS, it'll be reported by the eBay; however, when I search on "My eBay" for a form 1099K which I believe is the related tax-reporting form, it indicates that I don't have one.
Can you please advise if/how to go about reporting the income to IRS?
Many thanks again & best,
jian
4 comments
comics-scifi-collectibles
Mentor3 years ago@jijiami-gbjv5xnv The $600 limit is delayed and starts for sales made this year.
You still need to pay taxes on your profits
I like this report for helping to calculate my profits:
https://www.ebay.com/sh/fin/reportslanding
You can deduct the item cost of your inventory and other expenses such as packing supplies you have the receipts for.
jijiami-gbjv5xnv
OP3 years agoThanks much comics-scifi-collectibles for your kind/quick response! Per my take from your response, I guess I still need to formally setup a detailed sales sheet and show the profit/loss for every sale item, to show (in form 1099K??) proof whether I had a collective profit or loss... Is that correct?
Many thanks again!
Best,
jian
comics-scifi-collectibles
Mentor3 years ago@jijiami-gbjv5xnv Yes, you would do this on a schedule C.
The report I gave you a link to will get you started.
This is the announcement eBay made about the delay in 1099K $600 threshold.
https://community.ebay.com/t5/Announcements/IRS-announces-delay-in-new-600-1099-K-tax-reporting-threshold/ba-p/33448774
jijiami-gbjv5xnv
OP3 years agoThanks much again comics-scifi-collectibles for your reply and the provided info!
Many thanks and blessings!
Best,
jian