eBay

eagle44x-ray · ‎03-19-2021

Quick question: I know at the 20k threshold eBay will generate a 1099. Now, under managed payments, I show approx. 17k in "total sales" so far this year (which seems to include sales tax eBay collected), but under "net sales", I show approx. 13k (which is sales, minus seller costs and taxes). Which figure does eBay base the 1099 generation on? Thanks for any help!

gracieallen01 · ‎03-19-2021

I think it is based on gross receipts. Whether it meets the threshold for producing a 1099 statement or not, has nothing to do with tax obligation. Just a statement of gross receipts from ebay.

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hurryagain · ‎03-19-2021

@eagle44x-ray

Don't forget that next year the threshold is going to plummet to only $600.00 revenue. Read this post:

https://community.ebay.com/t5/Selling/Reseller-Tax-Law-change-for-1099s-in-new-Fed-Relief-Bill/m-p/3...

@gracieallen01 is correct - the 1099 is based on your gross sales.

buyselljack2016 · ‎03-19-2021

@eagle44x-ray

It has been posted by eBay blues that the eBay 1099 does not include sales tax collected by eBay.

dbfolks166mt · ‎03-19-2021

Like all income it is based on the gross as the starting point. This is what goes into the income area of your 1040. Then like any other income you have you report the adjustments/deductions. Things like eBay fees, shipping costs, packing materials, mileage to the post office if you drop the packages, and the original cost (what you paid for the item). You pay taxes on the adjusted gross income if you show a gain.