taxes
Im new to ebay selling. Ive kept track ofmy costs with purchasing inventory, etc. But how do I break down the postage part of ebay. Because that certainly was not income. But they put it on my 1099. Is there a form on ebay that calculates that for me?
8 comments
stainlessenginecovers
·1 year agoYou can find the amount of shipping that YOU paid by:
Go to Seller Hub
along the top- choose 'Performance'
On the left, choose 'Sales'
At the top, change the 'time' (for instance, "Last Year"
Scroll down (3rd Box Down), you will see 'Shipping Labels Paid"
They 'include' that portion because many charge more that the cost of the actual label cost (like I do) because the Envelope/Box/Tape/Label/Ink/Bubblewrap and 15% ebay fee on shipping ALL costs $$.
So, $$ in (gross on 1099)
$$ out (write offs)
shayleyanne
·1 year agoQuestion for you, do you have to have a business license to be able to “write off†dollar amounts for postage, supplies, refunds, etc? Been working on getting ours to expand our little shop, but every time I try going to the IRS site to apply for a number, the site seems to be down.
stainlessenginecovers
·1 year agoYou don't need 'license' to file with the IRS.
Any 'individual' can 'report' extra income on their tax return.
Per the IRS: "If your intention is to 'make a profit", you are a business and can write off whatever against your profits. A 'tax person' will know what to ask you for and what forms to 'add' to the 1040.
If you are selling your 'ex hobby' that you collected and now want to sell, the IRS will not allow any 'write offs' (best to check with your tax person, even HR Block will know how to handle that)
If you want to record a loss (I made $5000 but have $10000 in write offs, plan on a fine little visit to the IRS Audit that you will be invited to, to prove you 'attempted to make a profit', 'plan on profiting soon' 'have receipts for all those write offs'.
But, if you claim $5000 and have $1000 in write offs paying taxes on $4000- you should be fine.
Some 'cities' require a business license but if you sell 100% shipping online, don't have anyone come to your house etc. then it's up to you. But, that 'number' is not asked for on any of the tax forms sent to the IRS (or typically the State)
kensgiftshop
·1 year agoThe shipping the buyer paid you is part of your income.
You deduct the shipping you paid when you file your taxes.
shayleyanne
·1 year agoThat is a great question! You should be able to find a break down of how much you paid out for shipping by going to eBay’s sellers hub, go to my eBay, scroll over to my account, and look at reports. You can select by year or month. Thank you for bringing that up! I’m going to review mine now. Not sure how this will work. But the net amount that was reported on my 1099 does not match so far the net amount deposited into my bank. If anyone has any info on this, I would greatly appreciate it!
buyselljack2016
·1 year ago1099 amount will never match the net deposited to your account
1099 is gross paid to YOU by the buyer. (sales tax is not in the 1099)
shayleyanne
·1 year agoThanks you.
stainlessenginecovers
·1 year ago@shayleyanne
1.) you will not find that info in the 'Payments/ Reports'. Do as I stated in my previous post to see where to find the total $$ paid for shipping labels. (remember, this is ONLY for the cost of the label, but not any 'shipping materials' you may have purchased to ship the item(s).
2.) The 1099 does NOT match that because the 1099 shows what ebay SENT you the MOMENT they sent it, NOT when it 'hit your bank' and NOT when it was 'sold' (pending is NOT there)
So, typical 1099's are off because things sold the last 2-3 days or so in 2023 are including in 2024, and things sold last 2-3 days of 2024 will NOT be on it (will be on 2025).