Will 1099K/Shipping charges

[mywoodx]

Will 1099K include shipping charges on payout report for IRS that we have to deduct?

[stainlessenginecovers]

If you charge customers a seperate price for shipping (in other words- not FREE shipping)- then yes, that amount that you are being paid to ship the item WILL BE INCLUDED on the 1099k. 

[mtgraves7984]

Yeppers. Glad you know that they're entries on Schedule C. 🙌

[d.s.turner]

I am not 100% sure but after contacting eBay about this, I THINK the eBay 1099K is only one part of what has to be reported to the IRS. If I understand correctly, if you purchased shipping labels with PayPal, a 1099K from them is also needed.

[stainlessenginecovers]

FYI- doesn't matter where you purchase your labels from- it's all about the MONEY GIVEN TO YOU by the processor from a buyer.

Examples:

Free Shipping (for customer): $100 item, customer pays $108 with Tax. Seller gets $100 (BEFORE fees are deducted). 

$100 is on the 1099

$15 shipping charged to customer: $100 Item, customer pays $115 (item plus shipping and we'll pretend buyer is in New Hampshire where there is no sales tax). Seller gets $115 (BEFORE Fees are deducted). 

$115 is on the 1099 

[ms.rodriguez* · Accepted solution]

Do you ship from ebay? If yes,  go to MY EBAY and somewhere there(sorry I can't recall now), you click and you see your fees paid to ebay and the fees for shipping.  Add up both numbers and then that sum gets DEDUCTED from the total payment received which is what the 1099 form will have.  Don't forget to deduct your other expenses too like cost of shipping materials, item cost, a portion of your internet fee, a portion of the equipment you bought to do ebay (camera, printer,etc.) .  I say a portion because those items are used for a few years and sometimes you use the item for something else besides selling like playing games or taking photos of kids.   There are lots of expenses associated with selling. Start saving receipts now.  Guess for the items that you don't have the receipts like the cost of an item you bought years ago.

[boomersbiz46]

The 1099K includes shipping charges and expenses...to get the amt you report as gross ebay sales, you have to subtract these out of the 1099k amt. 

One of the good things they did this year was to change their reports on a monthly basis rather than the 15th to the 15th of each month, 

All of ebay reports (transaction, financial & tax reports) list different pieces of data in a different way. You have to hunt for them . Nothing is staightforward, even all of their reports do not accurately show, the sale price, less fees you pay to arrive at what the actual pay out is. You have to know all this. Take a look at each transaction and you will understand what I am saying. On one report, they show total earnings, which you think is the end payout amt, but it consists of shipping (which you do not really earn)  their sales tax & what the buyer paid. So labels are wrong for the data you need. The only really accurate amt is the payout amt and to figure this out you have to look at several reports.  End of rant...I am frustrated but I figured it out to do my taxes.  I have sent msgs to ebay to tell them to change some of their reports or labels and just do a straight forward "ONE" report & to use the KISS principle...KEEP IT SIMPLE STUPID! 

[gslyker124]

I sold an item that cost $30 dollars for me to ship to the Ebay Shipping Center in the US, but the buyer payed an additional $75 to ship to Europe. Is that $75 added to MY GROSS PAYOUTS?

As a small "garage sale" type seller on ebay, i'm not interested in making my taxes more complicated. You might think the 1099 is easy, but for me its' not. Tax preparers charge per form, so if I sell more than $600 dollars of items on ebay, I have an additional fee of $14 or something to pay the tax preparing company. Nobody talks about that. Plus, i'm not keeping receipts and going through that hassle stressing out about filling out the tax forms correctly to avoid getting over taxed.