1099-K Questions
Which total amount does the IRS use as the required amount to report? Is it the earnings after deducting expenses & refunds from the gross amount or is it the actual gross amount. Has anybody received their 1099K from Ebay yet?
34 comments
btjfitter
·1 year agoI claim mine and keep a excel spreadsheat I fill out after every sale for the gross , tax , fees, etc. My 1099 is showing to be off. Anyone else notice this? If i take my gross and subtract the sales tax .Each monthly column on the 1099K is reporting more than I received. I'm not subtracting and other fees just comparing the gross that was recorded in payments and subtracting the sales tax ebay collected from that gross amount when I sold the product . It doesnt add up to the 1099. So far the 1099 reads higher for every month.
mam98031
·1 year ago@btjfitter
I suggest you visit the post I made that is just above your original post. Post number 31. It will likely help you. There is actual other information in this thread that would also likely help you and it would benefit you to read the thread and visit the links provided.
Your misconceptions of the 1099K has been addressed in this thread but just to help, the 1099k represents the total amount of money that went into your account BEFORE ANY DEDUCTIONS. Meaning you need to subtract Ebay fees, shipping charges and any refunds you gave to buyers during the year. Sales Tax is NOT included in the 1099K number.
You should compare your Excel Spreadsheets to the Ebay reports to make sure YOU didn't miss something on your worksheets. There are some good reports.
https://www.ebay.com/sh/fin/reportslanding
Come on back if you have any further questions.
btjfitter
·1 year agoI am not subtracting the fees only sales tax from the gross amounts but it still doesn't add up. I just went through my monthly financial statements that ebay shown , I dowlload them every month and they don't add up to the 1099 amount either.like i mentioned i log the data after each sale for every sale and its off.If i am doing it wrong , why did it match last year?
mam98031
·1 year agoThe 1099k represents the total amount of money that went into your account BEFORE ANY DEDUCTIONS. Meaning you need to subtract Ebay fees, shipping charges and any refunds you gave to buyers during the year on Ebay. Sales Tax is NOT included in the 1099K number.
Because you aren't subtracting fees, shipping charges [if purchased on Ebay] and any refunds you gave buyers is exactly why you are unable to balance.
It was the same last year too. This is how 1099ks have always functioned.
tarotfindsandmore
·1 year ago"..... it is just a matter of time before the IRS audits you."
And with posts like the ones our friend has been sharing, that time may well come sooner than later.
jbbowers12012
·1 year agoHi, We here in New Jersey have been reporting our eBay income - no matter how much it totals. Quite sure that is technically an IRS requirement. We have not recieved our 1099 from eBay as of yet. (J.B. From N.J.)
mam98031
·1 year agoThey have 11 more days to release them. The requirement is by 1/31.
mam98031
·1 year agoIt is important to remember that the 1099K does NOT report your income. It reports the total amount that came into your MP account BEFORE ANY deductions for fees, shipping or refunds to your buyers. So you need to account for that to arrive at an adjusted amount.
https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-1099-K/ba-p/33141019
https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses
https://www.irs.gov/businesses/gig-economy-tax-center
https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html
https://www.irs.gov/pub/taxpros/fs-2022-41.pdf
luckythewinner
·1 year agoeBay reports the amount they are required to report by law.
It is described in detail in their help page about 1099-Ks.
https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794
mam98031
·1 year ago@califdreamin2004
https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-1099-K/ba-p/33141019
https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses
https://www.irs.gov/businesses/gig-economy-tax-center
https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html
https://www.irs.gov/pub/taxpros/fs-2022-41.pdf
kh-jean
·1 year agoHi everyone,
This discussion has gotten a bit off topic. Please bring the discussion back to subject established in the original post.
Thank you.
nh_sales_lv
·1 year agoTax Laws are Going to be changed, No More 🦠ice cream for JB and Barry. No more supporting foreigns while taxing us. The Game is Over, my friend.
fern*wood
·1 year agoYes, they will for sure for billionaires.
duffy4444
·1 year ago@nh_sales_lv:
Hey, CHILL OUT, my friend... Your comments in this thread are not doing any good.
Just like the majority of voters this time around, I'm also personally happy about the positive changes that will start going into effect in a couple days, God willing.
BUT -- I don't ago around poking people, making broad generalizations just to spout off, gloating, and going off on a tangent in a forum like this, at the same time having nothing to do with the OP's innocent question.
You're not doing any good for others or for yourself by grandstanding on a soapbox and displaying a lack of decorum. It's embarrassing to everyone, especially us Conservatives who watch our behavior, believe in "live and let live", and believe in using appropriate behavior based in self respect and the respect of others.
Cheers, Duffy
nh_sales_lv
·1 year agoI have every right to come here and say what i want, it's people like you that got us into this mess to begin with. People that think they can cancel others thoughts, feelings and expressions. People that need duct tape to cover their mouths, People that Misinform. I'm 51 years old and have never left this Country other than going to Vancouver for the Olympics in 1984. I've seen all the **bleep** changes they made. I seen them Destroy Businesses. I've seen them put up signs in store windows for free food and benefits, cash rewards, raffles, lotteries. I've seen the Destruction of America, so i have every Right to state what i want because this is a Free Country and you Pinheads can't stop me.
gurlcat
·1 year agoI can't tell if you're doing an impersonation. If so, it's quite exaggerated, cartoon-like in fact. But keep at it; comedy is as much a skill as a talent.
tarotfindsandmore
·1 year agoI've always done my taxes the way kensgiftshop does. That said, be very careful about taking the advice of any of us, or even giving it consideration for that matter. There are definitely some incorrect ideas here that may get you into trouble.
You'll get a 1099-K. If you use an e-filing service, the information on the form will probably automatically populate in your return once it's imported. Once it does, go through your tax forms and start taking your deductions. Ask a tax professional (not us) for specifics relative to your situation. You'll probably have more deductions than you realize but, again, be very skeptical of any information you receive here (including any that I may attempt to provide).
nh_sales_lv
·1 year agoWe'll just have to wait the 2 days and see then. You can stammer all you like but have no idea what's coming down the pipeline.
tarotfindsandmore
·1 year agoThe tax laws on personal gains and income from the sale of personal goods haven't changed in the four decades I've been paying taxes. The only thing that has changed are the thresholds. Openly advising others to commit tax fraud in a public forum is unwise, at best.
If you think you're going to be tax-free after the inauguration, you're in for a very rude awakening.
sunshinequest
·1 year agoI received a 1099 with almost 13k that I never receive from Ebay. 1. Monies were being held by eBay for AN ITEM authentication, and it did not. Money was returned by eBay to buyer. 2. a table that broke and the buyer withdrew the purchase. I never saw any money only charges for the eBay services. However, it shows as income on the 1099. I called on 2nd person in the tax department?? I asked to speak to a supervisor and was told you deal with it and your accountant. Why should I have to pay an accountant for money I never got? You cannot 1099 someone with money that was never paid. Please explain why I have to show IRS I did not get this money and why could I not speak to a supervisor. Help!
buyselljack2016
·1 year agoI don't know about you sunshine, but I don't need to talk to an eBay supervisor, or an accountant to take deductions for refunds. There is a line right on the tax form for that.
mam98031
·1 year ago@sunshinequest
Take a breath, you are making ASSUMPTIONS and you are getting yourself all this upset, why not READ what the form is reporting. You are over reacting because you don't understand the form.
It reports Gross Receipts, which is the total amount of money that came INTO your account. You have to reconcile that number by subtracting your ebay fees, shipping [if done in Ebay] and any refunds to buyers.
https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794
dnasilver
·1 year agoWhat happens if the pipeline bursts? What happens if the military is knocking at your door? What happens if the Constitution is burned? The more years alive, the more you travel across the world, and the more one opens their own eyes, they will realize they are not "all knowing".
nobody*s_perfect
·1 year agoThe 1099-K that you get from eBay will include the total that they processed for all of your buyers' payments for the item price and for shipping and handling. Sales tax is not included in your 1099-K total. Then when you report your income, you can deduct expenses such as eBay fees, refunds, postage purchases, and the original cost of the item. Here's the eBay Hep page about your 1099-K:
https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794
You should read the IRS form Schedule C and its instructions to better understand how the IRS looks at this. A few of the regular posters have collections of helpful links and will probably be here soon to share them, or you can look up any of the past 10,000 threads about the 1099-K.
nh_sales_lv
·1 year agoAll that stuff is DQ. All of it written by an Illegitimate Potus Decree by Illegitimate Hires. It's off the books in 2 days.
gurlcat
·1 year agoWhat's 'DQ'?
sixballcycles
·1 year agoAnd you still think that he is going to do anything for you. I will be saying I told you so until I die.
nh_sales_lv
·1 year agoIncome from personal goods cannot be taxed as Income. You are not a Business Entity as neither am I in my eyes. Sorry you were born Post 1999
monroe67
·1 year ago"Income from personal goods cannot be taxed as Income. You are not a Business Entity as neither am I in my eyes. Sorry you were born Post 1999"
Oh, my goodness. You have a lot to learn.
tarotfindsandmore
·1 year agoNot sure where you heard that but according to the IRS:
"Personal items sold at a gain
If you made a profit or gain on the sale of a personal item, your profit is taxable. The profit is the difference between the amount you received for selling the item and the amount you originally paid for the item."
Here's a link to the page...
https://www.irs.gov/businesses/what-to-do-with-form-1099-k#:~:text=If%20you%20made%20a%20profit,originally%20paid%20for%20the%20item.
kensgiftshop
·1 year agoNo, the gross mount is reported.
You deduct fee's and everything else when you file your taxes.
inhawaii
·1 year agoYou report what you were paid.
You report your deductions.
You report your profit (the balance).
nh_sales_lv
·1 year agoGlad i'm in Fly Over Country is all i got to say even though i could say a lot more.
pclementk
·1 year agoAs an FYI, I discovered the eBay cost of selling to be about 36% of the gross income stated in 1099-K form. So when I start my taxes, that dollar amount cost of doing business can be duducted.