1099 IRS and What is all included

[sidannancy]

I just found out by ebay that they are not to report any refunds or adjustments to the IRS per IRS… All the items I gave refunds to are not deducted from my 1099… Crazy!! Wish they would post that crap somewhere. That includes any adjustments made to to refunds, including shipping labels.  This is very frustrating

I do thousands of dollars in refunds every year.

Very sneaky!! Been selling for over 15 years and have NEVER BEEN TOLD THAT!!

[stainlessenginecovers]

It's VERY FAR from 'sneaky' and if you've been 'doing thousands of $$ in refunds for years' have you NOT been doing taxes for the business??

Refunds are NEVER shown on a 1099 given to a business/irs. Neither is shipping. Neither are Selling Fees.

The ONLY thing on a 1099 given to you and the IRS is:

The Total $$ you've been paid by that party. Period.

If you were paid $100,000 in a year, you report that amount on a Schedule C and then you deduct:

a) Refunds

b.) Shipping Label Cost

c.) Shipping Materials Cost (boxes, envelopes, tape, bubble wrap)

d.) Original Cost of the items sold 

e.) Fees charged by the Site or Sites' you sell on (including website monthly fees, paypal or any other 'processor' fees)

f.) Advertising for your business, website etc. (business cards, google search, bing search if you have a separate website)

g.) Office/Warehouse costs including lease, rent, utilities, property tax

the list goes on and on. 

[ms.rodriguez*]

You sold 100 dollars. That is income that entered.

You refunded 100 dollars, that is a cost that you paid. It's a deduction. 

of course, when you do the math, it's 0 for income but it must be documented this way .

All income= money received

ALL deductions= money that went out including refunds, postage, supplies,fees, etc. etc.

[sidannancy]

Yes I know of all the rest of the items on your list but didnt know refunds were not included. So if I sold 100k$ in items and refunded 50k$ in items they dont deduct it from my sold items!! I had NO IDEA!! 

[stainlessenginecovers]

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@sidannancy wrote:

Yes I know of all the rest of the items on your list but didnt know refunds were not included. So if I sold 100k$ in items and refunded 50k$ in items they dont deduct it from my sold items!! I had NO IDEA!! 

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Correct- they (eBay) don't; NOBODY EVER does. 

If you sold, and collected $100k in items and $20k in shipping, the 1099 would show $120k. What you refund, pay for shipping and all the other goodies are NEVER shown on a 1099.

[sidannancy]

I am not a business I just sell items on ebay for extra money. I had no idea that they didnt deduct the refunds. They dont even post it anywhere.  I looked and asked.  But was sent to IRS... **bleep** I paid a lot to the Mafia the last 15 years.

[house*of*paws]

Hi @sidannancy 

I am constantly being amazed by the number of things I don’t know … but I never expected that someone else was responsible for telling me all of that.  🙂

[jeff_b10340]

Does anyone know if ebay also ads the collected tax to your 1099?  It shows it as a total on my items sold. 

[lacemaker3]

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@sidannancy wrote:

I am not a business I just sell items on ebay for extra money. I had no idea that they didnt deduct the refunds. They dont even post it anywhere.  I looked and asked.  But was sent to IRS... **bleep** I paid a lot to the Mafia the last 15 years.

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@sidannancy wrote:

Yes I know of all the rest of the items on your list but didnt know refunds were not included. So if I sold 100k$ in items and refunded 50k$ in items they dont deduct it from my sold items!! I had NO IDEA!! 

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It's stated in the eBay policy page about this:

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

[lacemaker3]

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@jeff_b10340 wrote:

Does anyone know if ebay also ads the collected tax to your 1099?  It shows it as a total on my items sold. 

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No, sales tax is not included on your 1099-K.

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

[monica-sells]

@sidannancy from the ebay help pages:

As Form 1099-K is an IRS information return, it includes the gross amount of all reportable payment transactions within a calendar year, based on when funds settle to eBay, not necessarily when funds are received by sellers. This amount does not include any adjustments, for example, credits, discounts, fees, refunds, or any other adjustable amounts. This means that the gross amount on your Form 1099-K may not be the final reportable amount on your tax return. You should consult your tax advisor to determine how best to use the information on your Form 1099-K when filing your personal and/or business income tax return.

https://www.ebay.com/help/selling/taxes/ebay-form-1099k?id=4794&st=3&pos=3&query=eBay%20and%20Form%2...

[monica-sells]

@jeff_b10340 

"...Does anyone know if ebay also ads the collected tax to your 1099?  It shows it as a total on my items sold..."

NO....sales tax is NOT on the 1099-K

[buyselljack2016]

Your tax advisor can assist you with the filing of amended returns.

[bonjourami]

"I am not a business I just sell items on ebay for extra money."

IRS may disagree with you on that.

[stainlessenginecovers]

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@sidannancy wrote:

I am not a business I just sell items on ebay for extra money. I had no idea that they didnt deduct the refunds. They dont even post it anywhere.  I looked and asked.  But was sent to IRS... **bleep** I paid a lot to the Mafia the last 15 years.

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Yes; you are a business. If you've performed THOUSANDS in refunds, then you received TENS OF THOUSANDS in 'sales. That doesn't come from selling a few hundred $$ worth of stuff out of the closet. 

Extra Money is taxable. There is no 'FREE' extra money (very few circumstances)

You probably don't know this either but when you work, you pay 8% to Social Security/Medicare and your Company pays 8%.

When you are doing 'side gigs' you pay the ENTIRE 16% on TOP of Federal Income Tax and State Income Tax.