on the 1099s we each year, is that figure net of fees or must we subtract the fees to get net sales
@amaliacbc1anthony
1099K's represent the Gross amount of money that comes INTO your Managed Payment account. You will have to reconcile the numbers to get to your gross taxable income. First you would deduct any refunds you sent out to buyers, deduct shipping labels if you purchase them in Ebay and deduct all your Ebay fees to arrive at an Adjusted Gross Income that you would then work on subtracting all your other costs from. Shipping supplies, office supplies, cost of product, etc. Then you arrive at your adjusted taxable income.
EBAY reports your "gross sales" this includes "purchase price + shipping income". EBAY has "easy to read" 1-page report that shows YTD totals for (orders, refunds, EBAY fees, shipping expense). When you file your income taxes as a "business" you can deduct all your business expenses.
mam98031
·11 months ago@amaliacbc1anthony
1099K's represent the Gross amount of money that comes INTO your Managed Payment account. You will have to reconcile the numbers to get to your gross taxable income. First you would deduct any refunds you sent out to buyers, deduct shipping labels if you purchase them in Ebay and deduct all your Ebay fees to arrive at an Adjusted Gross Income that you would then work on subtracting all your other costs from. Shipping supplies, office supplies, cost of product, etc. Then you arrive at your adjusted taxable income.
https://sellerledger.com/ebay-1099k-guide/
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
https://www.kiplinger.com/taxes/irs-free-file
luckythewinner
·11 months agoeBay has a page that explains exactly what is included on a 1099-K:
https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794
I found it by typing "1099" into the "Help & Contact" box at the top of any eBay page.
caldreamer
·11 months agoEBAY reports your "gross sales" this includes "purchase price + shipping income". EBAY has "easy to read" 1-page report that shows YTD totals for (orders, refunds, EBAY fees, shipping expense). When you file your income taxes as a "business" you can deduct all your business expenses.
GROSS SALES
- Refunds
- EBAY fees
- Shipping expense
- Cost of goods
- Misc. expenses (mileage, office supplies, packing materials, etc).
NET TAXABLE INCOME
stainlessenginecovers
·11 months agoThe 1099 includes all payments you were given.
a.) Item
b.) Shipping
Items you were not given
a.) Taxes
You then have to deduct
a.) cost of item
b.) ebay fees
c.) shipping costs (label plus materials)
d.) and you can possibly deduct much more- see your tax person
inhawaii
·11 months agoEverything you were paid before any fees and other deductions/expenses = GROSS
Everything you were paid MINUS fees and other decuctions/expenses = NET