1099-k form 2024

[gorapani]

IF I RECIEVE A 1099-K FORM FOR MY SALES THRU PAYPAL  FOR 2024 WILL THEIR BE A PLACE TO DEDUCT MY COST FOR OBTAINING THOSE ITEMS?

[luckythewinner]

---

@gorapani wrote:

IF I RECIEVE A 1099-K FORM FOR MY SALES THRU PAYPAL  FOR 2024 WILL THEIR BE A PLACE TO DEDUCT MY COST FOR OBTAINING THOSE ITEMS?

---

If you fill out a schedule C, there are line items for deducting all your expenses. 

[caldreamer]

If you file income taxes as a "business" you can deduct "business expenses".    IRS requires that you report all income (even if you don't receive 1099).    IRS requires that "gross sales" (purchase price + shipping income) as shown on EBAY report.

EBAY has "easy to read" 1-page report that shows YTD totals for (order/gross sales, refunds, EBAY fees, shipping expense).   To print report go Payments, Reports, REPORTS (NEW) and select LAST YEAR.   This will be very helpful during tax time.

$20,000 GROSS SALES (as shown on EBAY report)

 -$500 REFUNDS (from EBAY report)

-$1,000 EBAY FEES (from EBAY report)

-$800 SHIPPING EXPENSE (from EBAY report)

-3,000 OTHER EXPENSE (cost of goods, mileage, packing materials, office supplies, etc)

$14,700 NET TAXABLE INCOME

Be sure to save all receipts to prove your deductions.

[nobody*s_perfect]

As shown in the other reply, you would use Schedule C to show your expenses including not only COGS (Cost of goods sold) but also eBay fees, postage, etc.  The IRS has several useful announcements and publications in addition to the basic instructions for Schedule C:

 https://www.irs.gov/newsroom/form-1099-k-faqs

Also, your original post mentioned "sales through PayPal," but payments for eBay sales are now processed directly through eBay, not through PayPal, so your 1099-K for eBay transactions would be issued by eBay.