1099 and Sales tax

[goldxxxsilver]

Keep Track of  Each and  Every Sale as it will include any Sales Taxes that were Collected...You will /can Deduct any Sales Tax  on your next 1099  or whatever you decide to claim....correct me if i am wrong...Thanks for Reading...

[luckythewinner]

---

@goldxxxsilver wrote:

Keep Track of  Each and  Every Sale as it will include any Sales Taxes that were Collected...You will /can Deduct any Sales Tax  on your next 1099  or whatever you decide to claim....correct me if i am wrong...Thanks for Reading...

---

The PayPal 1099K shows all deposits to your account, not just "income". If your grandma sent you $100 by PayPal to reimburse you for buying her groceries, that will be included as well. 

So yes, the PayPal 1099 will include the sales tax that was collected and then remitted to eBay in order to be later remitted to the states (at least since November, I think). 

And yes, you can identify this portion of the 1099K amount so that it is not reported as income on your tax return.

But no, you do not have to "keep track of  each and  every sale" because PayPal keeps track of it for you. You can download an activity report that breaks this information out for you. 

[Anonymous]

---

@luckythewinner wrote:

---

If your grandma sent you $100 by PayPal to reimburse you for buying her groceries, that will be included as well. 

---

Not if grandma sent that $100 with the friends and family payment method.

[slippinjimmy]

---

@Anonymous wrote:

---

@luckythewinner wrote:

---

If your grandma sent you $100 by PayPal to reimburse you for buying her groceries, that will be included as well. 

---

Not if grandma sent that $100 with the friends and family payment method.

---

Are you sure about that?

[Anonymous]

When I reconciled 2018 none of the F&F payments I received were included on my 1099, so unless they changed the process for 2019 then yes, I'm sure.

[goldxxxsilver]

My Dec. 1099 for 2019 did not break it down for Sales Tax...Total Sales Included Sales Tax Collected in Sales before any Ebay ..Paypal Fees were Deducted...I added them up and they were not Deducted... So I disagree with what you are saying...So Yes I do have to Keep Track of every Individual Sale that includes Tax until Things change...Thanks for the Reply!!!..😊😊

[classicworld66]

forget about sales taxes ebay collects and report all for you! 

[goldxxxsilver]

I have yet to Find the Activity amount that Shows State Taxes Total on either Paypal or Ebay...For now I will just keep a record per sale ...$73++ so far this year...😊😊...Good Luck Selling!!!

[claus_42]

true,but   it is included in your gross 1099k so you do have to back that part out  for tax purposes unless you want to pay tax on it

[goldxxxsilver]

I Agree...Needs to be Deducted from the 1099 by you...No Formula yet except sale by sale...😊😊

[luckythewinner]

---

@goldxxxsilver wrote:
My Dec. 1099 for 2019 did not break it down for Sales Tax...Total Sales Included Sales Tax Collected in Sales before any Ebay ..Paypal Fees were Deducted...I added them up and they were not Deducted... So I disagree with what you are saying...So Yes I do have to Keep Track of every Individual Sale that includes Tax until Things change...Thanks for the Reply!!!..😊😊

---

I didn't sat that the PayPal 1099K broke down the sales tax. 

I said the PayPal activity download will break out the sales tax for you.. It's available in a column called "Sales Tax" on each transaction, and there is also a separate transaction for each one when it is sent back to eBay. 

I was simply pointing out that you do not have track each sale yourself, because the PayPal activity download will do that for you.

[luckythewinner]

---

@goldxxxsilver wrote:
I have yet to Find the Activity amount that Shows State Taxes Total on either Paypal or Ebay

---

Here is the CSV PayPal activity report I created on Dec 31: 

And in that file, here are the separate transactions showing the sales tax amount transferred to eBay for each transaction: 

[boomersbiz46]

This is the first year that I received a 1099. I use to use the ebay figures  total sales for the year off of my sales reports. This report gave total sales by month, Ebay fees and PP fees.  

Looking at the totals on the 1099  it is overstated by about $5000 compared to the ebay sales totals. How do I reconcile the figures?   I know sales tax is included in the 1099 but it can't be $5000 worth. Since ebay only has 90 days worth of data, it is difficult to figure it out. I just want gross sales (not gross receipts) to file my taxes correctly.  What does eBay's sales reports totals represent? I do know that the PP fees on ebay equal the PP fees on Paypal but the gross amt is off.   I know how to look at the Paypal reports and pull off all my sales and deduct the sales tax etc, but curious as to what ebay' s total sales figures are.  Can anyone help?   

[7606dennis]

Yes, one needs to pay attention when keeping one's books.  

[the*dog*ate*my*tablecloth]

Can you pull reports from PayPal? I could not completely reconcile my 1099s but they were only off by a couple of hundred bucks. It wasn’t worth the effort to find the discrepancy. $5k is a lot tho.