Sanity Check -- Returns/Refunds/Partial Refunds not included on 1099K?
Just a sanity check because my brain is kind of mushy right now, and maybe it will help someone else too.
Any money refunded to a buyer (return, refund, partial refund, etc...) is NOT accounted for on my Gross income on my 1099K and needs to be itemized separately (as a deduction) on my tax forms. I know there is some specified line somewhere on there for refunds or something.
Correct?
3 comments
mr_lincoln
·2 years agoHi @ajs_coins_and_alchemy
-Download the IRS Schedule C with the Instructions to read about deductions.
-eBay reports as @inhawaii mentions can supply some of the information like out of pocket Paid shipping, Refunds, Returns, Paid Fees, Etc. Other expenses like mileage deduction, packaging material costs, inventory value, etc have to come from your own records.
kensgiftshop
·2 years agoRight.
The 1099K include all payments, even if a refund was made.
You deduct the refunds when you file your taxes.
In the expenses section, there should be a place to enter refunds.
inhawaii
·2 years agoSeller hub > Payments > Reports
"Last year"
That should show you a total of refunds that you need to deduct from your earnings.