How does ebay determine gross income on an items sold when determining if a seller needs a 1099 form

[nacomi88]

How does ebay determine gross income on an items sold when determining if a seller needs a 1099 form?

For example I sold item below for $35 +10.50 for shipping. 

LG VX8360 Simple Verizon Cellular Phone Flip Phone For Seniors 3G Cell Phone | eBay

The ebay fees were 6.50

so when ebay considers my "Gross Income" to track for the 1099 form do they record $45.50 or $39?

Also i recently had a order i had to cancel so i never saw the funds. 

Is this part of the 1099 total or neglected since i never saw the funds?

[inceptions]

Your 1099-K will include the sum of all payment transactions. If you issued refunds, those would be an itemized deduction on your tax return. If your payments total $600 or more, you'll be issued a 1099-K. If your payments are less than $600, you'll file your tax return the same way except there will be no 1099-K to attach.

[nacomi88]

So in my first sample whats the amount ebay is recording?

is it  $45.50 or $39 for example?

 if an order was canceled and never left my home its still listed in my 1099?

[*lady*madonna*]

@nacomi88 

You may want to refer to this to answer all of your questions:

https://www.ebay.com/sellercenter/resources/2022-changes-to-ebay-and-your-1099-k

[inceptions]

The payment is $46.50, so that is what goes into your 1099-K total.

If you cancel that order after the buyer pays, you would deduct the refund on your tax return. (It doesn't matter if it never left your house.)

[nacomi88]

Thanks @inceptions !

Now I am clear that the 1099-K will consider the total sale price before ebay fees are deducted.

Additionally canceled orders that end up with a refund still count as a sale, so it's added to the total sales of the 1099-k.

I brought this up since I was just selling some old items to clear up clutter in my home. So, I wanted to do the math to see if I was getting close to the new 2022 $600 threshold here in CA for the 1099-K.

Thanks Again for the help!