As a seller on ebay, do I have to pay taxes and ebay fees on a added handling fee?
As a seller on ebay, do I have to pay taxes and ebay fees on a added handling fee?
6 comments
As a seller on ebay, do I have to pay taxes and ebay fees on a added handling fee?
monroe67
·3 years ago"As a seller on ebay, do I have to pay taxes and ebay fees on a added handling fee?"
I see two questions here.
First: ". . . do I have to pay taxes on a[n] added handling fee?"
Assuming by "taxes", you mean federal income tax, as a general rule your profits from eBay selling are subject to income tax. Handling fees are generally considered expenses and are deductible. Your handling fees will be included on any
1099-K form that eBay sends you (when eBay processes at least $600.00 on behalf of your selling ID in any year), and you would list that full amount as "income" but then you can deduct those handling fees as expenses.
Everybody's tax situations are different but, in general, no, the handling fees you add to your eBay listings would probably not be taxed as federally taxable income.
Second: ". . . do I have to pay eBay fees on a[n] added handling fee?"
Yes. eBay sellers are subject to eBay fees on the total amount paid by their buyers. The total amount includes the price of the item, any handling fee, the shipping price, any sales tax, and any other applicable charge (such as California's electronics recycling fees). The good news about eBay's fees is that they are also deductible on your federal tax return.
ms.rodriguez*
·3 years agoWhen you get paid, all of the money EXCEPT the sales tax that the buyer pays will go into your managed account. This includes whatever the buyer paid for shipping and the handling fee. You DEDUCT all of your expenses. That would include shipping, the cost of the item, ebay fees, printer ink, paper, boxes, shipping supplies, etc. etc. You can deduct a PORTION of your internet fees. If you bought a new device to use for ebay, a portion of that can be deducted. A portion because you can use it for more than a year so you can't write off the entire amount in 1 year.
Start saving receipts. Start documenting what you paid for your items. If you don' t have the receipts, at least write it down in a notebook.
monica-sells
·3 years agoShort Answer: is YES
an 'added' handling fee is recognized as "income', just like the item you are selling and the shipping you are collecting.....
Item Sale: $50.00
Shipping: $12.00
Handling: $1.50
Total Sale: $63.50 (Income)
It is from the Total that you deduct expenses (Final Value Fees, Shipping, Promoted Listings, Envelopes, Ink, Boxes, Peanuts, Bubble wrap, etc and so on.....) to determine any TAXABLE Income
OR... to put another way, it is just like charging 51.50 for your item and $12.00 for your shipping....same total.... but it makes you feel better doing it this way....
lotzofuniquegoodies
·3 years ago@monica-sells
Now if only eBay would recognize shipping is not profit for the seller. It's an expense. It is only a number that eBay uses for billing the seller for fees.
-Lotz
nobody*s_perfect
·3 years agoYes. eBay's final value fee is based on the buyer's total payment including item price, shipping and handling, and sales tax (if any).
Tax paid to the IRS would depend on how much profit you made after deducting your expenses such as eBay fees, actual postage purchased, etc.
lamber9347
·3 years agoIt is the final total amount of the transaction. You would pay taxes and be charged fees on the total amount. It makes no matter what the money went towards, it is based on how much the full transaction amount was. Best of luck to you....