Net total

[tess_thes]

I am worried about my net total.  For example my net total is $1000 but I have just $500 in my account.  Does it mean that Ebay is calculating every thing including shipping fee that the buyer pays to my net total? Meaning when I'm filing for taxes, I will pay for the total amount of $1000 that I do not even have? Even when I accept offers from customers, ebay will calculate the original price. So, how can I manage this because I am just discouraged and scared that I will pay more on taxes on the amount I have not even realized yet.

[kensgiftshop]

You report your gross income, then deduct expenses and fee's.

[worldcoinauctions]

I buy my postage right here on ebay so that and the fees (and yes, they do fees on what the buyer pays for postage as well as the sales tax collected) are all out before I get the payment. 

Come tax time my ebay net is the total I have received. This is what the tax preparer looks at. If you want to be completely accurate take your 1099 total and subtract your net proceeds from it, these are your direct ebay expenses so you can show that.

As for the rest, envelopes, packaging, labels etc, I track those as general business expenses. Those are not specific to ebay, some may be used for other sites or other business purposes. 

Income - (expenses+cost of goods) = profit, this is unlikely to be anything close to what your sales total is.

[tobaccocardyahoo]

This link may help you feel more comfortable when it is time to deal with the tax men and women

https://www.irs.gov/newsroom/taking-care-of-business-recordkeeping-for-small-businesses

[kalyoth]

Your earnings is everything pre-deductions. You deduct down from there.