1099 Question

[anicept]

Just spent an hour on live chat with an Ebay rep.  His last message, at the end of the hour and my asking the same question 4 times is "As the proper information has already been given and there's nothing else you may want me to assist you with today, I'm afraid that I'll have to disconnect this chat now."  Unbelievable.  Perhaps someone in the community can help.  I rec'd a 1099 for 2021, in error because I did not reach the previous $20k limit.  However, I wanted to use this opportunity to understand better what to expect at the end of this year.  The 1099 has totals for each month (I like that) and they indeed add up to the number in Box 1 (way more than I sold).  My question to him was, how is this number calculated?  How can I validate or verify, for instance, the total for Feb 2021?  I ran sales and transaction reports before I even asked the questions, cannot reconcile those numbers to the total for that month (minor amount of $, 8 sales!) and asked for some help with the calculation.  He spent a whole lot of time repeating the generic information in the help articles.  He suggested several times that the total on the 1099 would be higher than expected, and that I meet with a tax advisor for guidance on how to proceed with filing.  How can I explain to a tax advisor why I think these taxable income numbers are too high when I can't explain where they come from?   Is it just me?  So frustrated!   Does anyone know how to pull numbers off the sales and/or transaction reports to reconcile these numbers?  I appreciate any help!

JE

[wildpitchsports]

Numerous states changed the reporting thresholds for the 2021 tax year, triggering your 1099K.

What state are you in?

[babclassics]

Your 1099-K will include total revenue collected from all buyers even for some cancelled sales. So sales price plus shipping paid by the buyers.  Only eBay collected sales tax is not included.

Any fees and shipping costs you paid are expenses and they get deducted on your schedule C, not your 1099

[anicept]

I am in California. I received an email from Ebay stating that I would receive a 1099 in error. And I did receive one in the mail. It states a total income of less than 20,000 but I assume the numbers are still accurate. So I used them to practice so that I could be prepared for 2022. It’s important to me that I be able to reconcile these totals to some real data. So far I haven’t been able to.

[anicept]

Thank you!  Let me look into this!

[slippinjimmy]

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@anicept wrote:

Just spent an hour on live chat with an Ebay rep.  His last message, at the end of the hour and my asking the same question 4 times is "As the proper information has already been given and there's nothing else you may want me to assist you with today, I'm afraid that I'll have to disconnect this chat now."  Unbelievable.  Perhaps someone in the community can help.  I rec'd a 1099 for 2021, in error because I did not reach the previous $20k limit.  However, I wanted to use this opportunity to understand better what to expect at the end of this year.  The 1099 has totals for each month (I like that) and they indeed add up to the number in Box 1 (way more than I sold).  My question to him was, how is this number calculated?  How can I validate or verify, for instance, the total for Feb 2021?  I ran sales and transaction reports before I even asked the questions, cannot reconcile those numbers to the total for that month (minor amount of $, 8 sales!) and asked for some help with the calculation.  He spent a whole lot of time repeating the generic information in the help articles.  He suggested several times that the total on the 1099 would be higher than expected, and that I meet with a tax advisor for guidance on how to proceed with filing.  How can I explain to a tax advisor why I think these taxable income numbers are too high when I can't explain where they come from?   Is it just me?  So frustrated!   Does anyone know how to pull numbers off the sales and/or transaction reports to reconcile these numbers?  I appreciate any help!

JE

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Read this thread......

https://community.ebay.com/t5/Selling/California-1099-K-for-2021-to-be-fixed/m-p/32679235#M1935972

1099k's for California residents with sales less than $20,000 were issued in error. They have been withdrawn and they were never and will never be submitted to the IRS or CA taxation board.

If you received one and were below the threshold you can toss it in the trash if you like.