TAXES

[karafuzeart]

NEED advice on how to keep my ebay sales records for taxes and I have never used any tax programs so I need taxes for ebay dummy advice.  What is the best and most simple program for keeping records I dont havea cpa but sell around 20-25k a year and will use a paid site if necessary.  I am having issues with getting what I need for 2022 records and 1099 k info what and how do I get the records for my taxes I fixing to do for 2022 off ebay?

[comics-scifi-collectibles]

@karafuzeart   I like this new report:   https://www.ebay.com/sh/fin/reportslanding  

It downloads as a CSV and totals everything up.  

If you want more detail then you can run the transaction report:  https://www.ebay.com/sh/fin/reportslanding

If you had over 20k in gross sales then you should get a 1099k here: https://www.ebay.com/sh/fin/taxforms

I would recommend talking to an accountant.   In Az mine said in addition to the eBay selling expenses ( returns, shipping, fees)  I can also deduct item cost, mileage to the post office, plus supplies that I have receipts for such as packing material, printer paper, etc.  

[wooden_flower]

When you 1099k is ready, it will be here - https://www.ebay.com/sh/fin/taxforms

If you sold over $20,000 and 200 items in 2022, you will get one for 2022.

You can run transaction reports here - https://www.ebay.com/sh/fin/reportslanding - to get a full list of your sales, the fees you paid and your shipping costs, if you paid for your labels from your payouts.  If you paid for shipping through paypal, go there and run an activity report.

There's a lot of good info here - https://www.ebay.com/sellercenter/resources/ebay-and-taxact-partnership

Read the IRS guide to schedule C.  Here's the online version - https://www.irs.gov/instructions/i1040sc#idm140286985746416 - you might want to download and print the pdf version - it is much easier to read.

Your record keeping is really specific to your business and how you are going to file your taxes.  Besides the info you can get on the reports above, you need receipts for the items you purchase to sell, receipts for other supplies like packing materials, a record of your mileage if you take your packages to your shipper. When you read the instructions for schedule C, you'll see what other costs you can deduct.

I would really suggest gathering all of that and paying for tax prep for your first year.  After a pro gets your first return filed, you can do it yourself using an online program in future years.  It will cost a few hundred $, but will be well worth it.

If you are OK using a spreadsheet like Excel, you can keep track of all of your costs there. The most important thing is to record each expense as you spend the money.  It is only difficult when you have to go back and try to find everything for a full year all at once.