on 01-19-2021 11:06 AM
In most years I don't do over $20k gross, but somewhere right below it. I don't usually get 1099s then, but I do file taxes every single year. Normally my method is that I generate an annual statement from paypal for all transactions. Because I use my paypal account for any purchase relating to my ebay sales (supplies, postage, buying inventory, etc) it was simply a matter of subtracting payments out from money in to find the gross. My accountant had no problem with this method.
I have some concerns about this year, though. It was a heavy sales year for me and I definitely passed the 20k gross income threshold. However, until July I was using Paypal, and starting in August I was switched over to managed payments. Now I'm in a situation where I did not pass the 20k threshold in either paypal or MP, meaning I won't get a 1099 from either, but I did pass it in combination, meaning I should have one. I also no longer have a simple straightforward way of determining my intake vs output. I can still run my paypal statement for the year, but I would need to supplement with a similar statement from ebay that included just the money I took in from MP (sales price minus fees minus shipping).
Is anyone else having this issue and, if so, what documents are you generating to help with taxes?
Thanks!
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