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How to get eBay to correct an erroneous 1099-K
I just received my 2022 1099-K from eBay and it is incorrect. In October 2022, I sold a Louis Vuitton bag for over $2200. However, because I didn't post enough photos, the bag didn't pass authentication and the sale was voided, the customer was refunded and the bag was returned to me. However, on my 1099-K, the amount of the sale is there in October, and it was not removed from any of the other months - meaning that I am going to have to pay taxes on $2,200 worth of sales that I didn't have. Tried calling eBay and can't get past the stupid automated phone to speak to a real person and have had no response to my emails.
Any ideas what I can do to get this corrected?
11 comments
kh-cathy
·2 years agoHi everyone,
Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.
Thank you for understanding.
jevetter8
·2 years agoYou do not need to get the 1099-K corrected, and in most cases the reporting company (eBay in this instance) won't correct them - it take them forever to correct everyone's 1099-K. So the IRS has issued the following on how to report it if you can't get a correction from the issuing company. This is from the IRS website. It only addresses how to report this if you are reporting the income on your personal 1040. If you are business - for example an S-Corp reporting on form 1120S, or a partnership reporting on form 1065 it is just as easy but different forms and line numbers.
If a corrected 1099-K cannot be obtained
If taxpayers can't get a corrected Form 1099-K, report the information on Schedule 1 (Form 1040) , Additional Income and Adjustments to Income as follows:
The net effect of these two adjustments on adjusted gross income would be $0.
@jevetter8
You're a year too late responding to this thread this thread is from January 2023 .
caldreamer
·3 years agoThis is NOT an error. EBAY reports "gross sale transactions" and then you deduct "expense" for voided or returned merchandise". EBAY has a new "easy to understand" 1-page reports that shows YTD totals for (orders, refunds, EBAY fees, shipping expense). Go to PAYMENTS, REPORT (click on "Reports (NEW" on left hand side). Enter time period 1/1/2022 12/31/2022.
You must report "gross income" as shown on 1099 to IRS. Then you deduct expenses (EBAY fees, refunds, shipping expense, costs of goods, mileage, packing materials, office supplies). You must file taxes as a "business" if you want to deduct expenses on Schedule C tax forms. You only pay taxes on "net income" after all expenses deducted.
luckythewinner
·3 years agoThere is nothing to correct. Your 1099-K is accurate.
eBay is required by law to report the gross amount of payments processed, not the net amount of your sales after returns and refunds.
m60driver
·3 years agoThere is a new Ebay report that is being slowly rolled out to sellers that you can generate for 2022 that summarizes in a single page all you need to know (sales, shipping labels, and refunds) to include on your schedule C. I found it once and printed it out but can't find it at the moment. Perhaps someone else can help with that.
wastingtime101
·3 years agoThis one @m60driver? Click the 1099-K details tab to generate the spreadsheet.
m60driver
·3 years agoNo, the new report generates this report. I have edited out my specifics
monica-sells
·3 years agoThe two previous posters are correct. The 1099 is correct, so save your frustration trying to contact them.
"...However, because I didn't post enough photos, the bag didn't pass authentication..."
not enough photos? I don't understand this (I use authenticators on occasion)
fern*wood
·3 years agoThe 1099k will always report all payments you receive. If a payment is later refunded, you merely account for that when you file your taxes.
nobody*s_perfect
·3 years agoThis is not an error. IRS rules require eBay to report all funds that they processed for you. Then you can deduct expenses such as returns, refunds, fees, postage, etc., on your tax return forms. Most eBay sellers use Schedule C.