How to file a 1099-K Tax. last year I got into so much trouble.
Hi, 2022 was a disaster for while I was doing the 1099-K. the person that I usually hire to do my taxes did not knew all the details about this form. since its so complicated with the IRS making changes and making pause, I am ready to file the 1099-K for 2023 but I am afraid. any suggestions on how to file and what to deduct and so forth. thank you
5 comments
r_lresale
·2 years ago@cashmeredelight Did you mean to tag me?
"don't forget taxes declared on your seller fees"
Taxes paid by the buyer are not included on the 1099-K or do you mean state taxes? Some states do get a 1099-K for sales over $600 (depending on state) but luckily I'm in Texas so we don't have to file a state return only have to file federal.
ETA: I just suggested the CPA as they are more specialized in dealing with business taxes. My CPA actually gives me a discount because I do all the figures myself and hand over the numbers for her to plug in and make sure I didn't miss anything, etc. If there was a problem and I owed more money or there was some major problem, she offers a guarantee just like H&R Block and other tax preparers.
monroe67
·2 years agoI have had excellent tax prep assistance from my local office of H&R Block.
Look up your nearest location online. You can call ahead to schedule your appointment, or schedule online.
If you call ahead, you can tell them you sell on eBay, and ask if their tax preparers are familiar with the IRS Form 1099-K and all possible deductions you might be eligible for. (The answer will probably be something like, "Of course, we are!") I could be mistaken, but I think H&R Block offers a 30-minute free consultation before they start preparing your actual tax return documents.
Of course, H&R Block is in business to make money, so you will have to pay some amount of money for their services.
But, in my own experience, I feel it is well worth what I paid them to know that my tax return(s) were prepared accurately AND knowing that H&R Block stands behind their work.
soh.maryl
·2 years agoThere are professional tax preparation services all over the place. Unless you have a very complicated financial picture, it does not have to be a CPA. Suggestion: Ask your friends/family who they use and if they are satisfied with that service.
r_lresale
·2 years agoIf you hired someone to do your taxes that didn't know what a 1099-K was much less what to do with it then yes that is a disaster. You really need a CPA as they are certified and are up to date on tax laws for your protection. It probably wouldn't hurt to have them look over last years taxes just to make sure they ended up being done correctly.
As far as deductions here are a few I can think of off the top of my head:
Cost of goods
Shipping costs/shipping & office supplies
Selling fee's
Gas
cashmeredelight
·2 years agodon't forget taxes declared on your seller fees,
personal items cost that you don't need to claim but Are listed in fees,
gas needs to be broken down between going two PO, used to buy items to sell and to buy office materials for selling,
third party selling fees such as sellersourcebook for listing and saving listings
house costs that can be partially deducted: utility bills, phone costs, registration fees and original car cost and maintenance fees, rent paid --the % is figured out automatically for you if you use turbo tax business edition
really don't need CPA - can do all this yourself by being careful