Item Sold but returned

[pppjjjfff]

Hello,

I recently sold an item and that I ended returning. However, it stills shows as up as an item sold in my record of sales. I need that updated by Ebay, or I’ll have to pay income taxes on this item that technically sold but was returned.

Can anyone advise on this?

[dryophelia]

@pppjjjfff 

Refunds are a deduction when you do your year end taxes. 

[pppjjjfff]

So if the sale (which was refunded) pushes me over the $600.00, I'm now receiving a 1099. Correct?

[albertabrightalberta]

All your income is reportable, whether there's a 1099 or not. 

Then you deduct your expenses and if taxes are due (which they are often not), it's only on the profit after expenses.