Locked
Discussions in this board are limited to the original poster and Community Mentors
What amount does Ebay report to IRS?
When I click order details, which amount will be reported to the IRS? Do I use Order Total, Order Earnings, Net Proceeds or some other number? Does it depend on how I pay for shipping (paypal label or ebay label)? This is the very unfun part of Ebay. Thanks, Scott
3 comments
tidey5jiy
OP2 years agoSo, in other words, you let Ebay worry about the selling price, but you keep up with fees they charge, shipping cost and cost of items sold? Do you tag the fees to the item when it sells or when Ebay charges them?
wooden_flower
Mentor2 years agoOther than listing upgrade fees, the fees are not charged until you are paid. So your fees automatically line up with your payments. If you have some fees paid at listing, record them when you spend the money since the fee is not dependent on the item selling.
There are reports you can run that will help you keep track of fees and shipping, so cost of goods sold is the main cost for you to track. Plus any expenses you incur outside of eBay - packing materials, mileage to go to the PO, printer supplies, etc.
Reports are in your payment account - https://www.ebay.com/sh/fin/reportslanding - you can run the transaction report for just shipping, or fees.
The 1099k is gross payments - refunds are not deducted - so you also need to adjust for refunds.
wooden_flower
Mentor2 years agoHow you pay for your shipping does not matter.
The amount reported on the 1099k is the item plus shipping paid by the buyer.
The shipping that you paid, and the fees you paid are not deducted - you deduct these are expenses when you prepare your tax return.