1099-K Form Questions

[califdreamin2004]

I received my 1099-K form and it looks like ebay mostly fills everything out.  I sell for a hobby and was wondering what else do I need to do with the form.  I know I need to transfer my total sales to my 1040 form.  Can anybody tell me?  Any help would be appreciated.  

[luckythewinner]

The IRS has a great page called "What to do with Form 1099-K"

https://www.irs.gov/businesses/what-to-do-with-form-1099-k

And another page called "Understanding your Form 1099-K"

https://www.irs.gov/businesses/understanding-your-form-1099-k

[mam98031]

If you pay taxes on using the amount that appears on your 1099K without any adjustments, you will over pay taxes.  The 1099K does NOT report your total sales.  It reports your Gross Receipts.  How much money came INTO your MP account BEFORE any deductions for fees, shipping paid [if you use ebay] or refunds to buyers.  So you need to reconcile your numbers.

https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

https://www.irs.gov/businesses/gig-economy-tax-center

https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html

https://www.irs.gov/pub/taxpros/fs-2022-41.pdf

https://www.kiplinger.com/taxes/irs-free-file

[califdreamin2004]

Thank you for the links.  This should help.  

[califdreamin2004]

Thanks for the reply.  What does MP account stand for?

[mam98031]

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@califdreamin2004 wrote:

Thanks for the reply.  What does MP account stand for?

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MP = Managed Payments.  That is the name of Ebay's money processing service.

[slippinjimmy]

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@califdreamin2004 wrote:

Thanks for the reply.  What does MP account stand for?

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Managed Payments