Tax Form is wrong

[violetta312]

Hello,

 I have just received my 1099-K from eBay, and there is a mistake in the total amount I received.

They added an item I sold in July 2021, but the buyer actually changed their mind after receiving the item, and the payment was sent back to the buyer. Thus I did not make a sale.

Is there anyone with answers as eBay does not have any topic on this?

Thank you!

[disneyshopper]

When you file the Schedule C with your tax return, you have to deduct all cancellations and refunds that were made.

[woodland_gnome]

The 1099 is correct.  You did make a sale.  "Returns and allowances" is a separate line item (line 2 of Schedule C).