Will I get taxed on the canceled order which the buyer didn't pay at all?

I just checked back on my seller dashboard (I know it's late) and found my 90-day total includes an order amount for an order I canceled because the buyer didn't pay me after 4 days. I am curious if I will get taxed for this money I didn't receive at all or not...

zhahu_4384

12 View listings

Posted 3 years ago·Last reply 3 years ago

4 comments

evry1nositswindy

·3 years ago

3480 View listings

You are not taxed, you are sent a tax form that is a gross of payments received. It is up to you to figure out the net.

itsjustasprain

·3 years ago

2353 View listings

@zhahu_4384 wrote:
I just checked back on my seller dashboard (I know it's late) and found my 90-day total includes an order amount for an order I canceled because the buyer didn't pay me after 4 days. I am curious if I will get taxed for this money I didn't receive at all or not...

As above: the 1099-K only reports money you received, not money you did not receive, so no, you will not be taxed on it.

Note that this is different from payments you received and then refunded. You will need to list your refund(s) sent as deductions against the reported funds that you received. The 1099-K will list your payments received, but not your refunds sent back.

wastingtime101

·3 years ago

0 View listings

eBay includes on the 1099-K transactions for which payment was processed. If the buyer did not pay then it will not be on your 1099-K.

Learn more here: https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

lakefor94

·3 years ago

122 View listings

If the buyer never paid, there are no tax implications.