Taxes

Question

greetings. I was wondering how does eBay come up with your tax amount for the year ? I went into my bank account and added all eBay deposits that I received last year and it does not add up to the amount that I received my 1099 form. Does anyone know what numbers they are looking at ?

mr_lincoln · Answer

Hi @inc_sales

eBay issues a 1099K for the TOTAL gross sales which include the item prices and paid shipping from Buyers. You can use deductions on the IRS Schedule C form to reduce the taxable income or declare a loss depending on what the final numbers are. Read about what the 1099K does and does not include on this eBay Help page: eBay and Form 1099-K | eBay

If you simply added up eBay deposits those numbers are AFTER eBay has taken their fees so it will not be close to what the 1099K reports to the IRS.

eastlaneave · Answer

@inc_sales

Your 1099-k for your sales will be here

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

There is a reconciliation form here with more detail
https://www.ebay.com/sh/fin/taxdetails

Here is a new 1099-K Guide. It shows how all the numbers are generated:

https://www.ebay.com/mes/taxguide

eBay is required to issue the 1099-k for the gross amount of your sales which is more than your deposits

On your Sch C of your tax form you can deduct

Things paid for from your eBay funds

- Selling Fees

- Promoted Listing fees

- Postage

- Refunds

Other things you pay

Cost of goods sold

Mileage

Shipping supplies

etc

This is a Financial overview page that will help you

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

(if the link doesn't work try

Seller Hub> Payments > Reports

Change your time period to "Custom"

Select: Jan 01, 2024-Dec 31, 2024

Right on the screen you will see the totals you need

- Sales

- Fees

- Shipping Labels

- Returns