Do i add a refund to my gross sales if a buyer paid for an item then was refunded the whole amount?
Bascially a buyer paid for an auction that he/she won but about an hour later had second thoughts and wanted a refund. i gave the refund back in full and now im trying to figure out my gross sales for my schedule c for income tax season. Would i add the amount the buyer paid for the item+ shipping amount into my gross sales and then deduct the ebay fees as an expense? or do i just not include the refunded amount to my gross sales at all?
2 comments
monica-sells
·2 years agoIt depends on where you are getting your TOTAL GROSS Sales number from...
If you are getting that number from ebay reports, it is already contained in your gross income number there....
You add it on and deduct it in Part 1 Line 2
if you are getting your gross income number from your own records, then the advice from @toomuchstuffagain35 is right on the money. You add the sale in with your other stuff on Part 1 Line 1...
and deduct it in part 1 Line 2
toomuchstuffagain35
·2 years agoI usually include any sales that were refunded or canceled AFTER PAYMENT in the gross amount as they still count as "sales" and then deduct the amount of the refund as an expense.
Remember that by law the 1099K reflects ALL monies actually processed through ebay, The only exception to this is the State Sales Tax which ebay collects and remits.