mam98031 • Volunteer Community Member • Buyer/Seller since 1999
ShipScript has been an eBay Community volunteer since 2003, specializing in HTML, CSS, Scripts, Photos, Active Content, Technical Solutions, and online Seller Tools.
@lightlily_arts wrote:I have never received a 1099-k from eBay previously. I never made enough money so I was really surprised to get one too. My issue is that it's incorrect and their reported numbers don't match my monthly statements at all. I always download detailed monthly statements as I keep a ledger for tax purposes. They are reporting significantly more than I actually sold.
Monthly statements are just that @lightlily_arts . A statement on what transpired in that month.
That is NOT how a 1099K is calculated. They go off of PAYOUT date, not the paid transaction date. That will make a big difference for you when you are reconciling.
Come by this other thread as it may help you too.
@tealt This post can help you too.
@lightlily_arts wrote:Even looking at payout amounts it still doesn't match. I'm wondering if those numbers were including the buyer's state taxes.
In your case, "no".
You are in California and eBay started collecting California sales tax prior to the 2021 reporting period. When eBay collects the tax, eBay does not add it to your 1099.
@lightlily_arts wrote:Even looking at payout amounts it still doesn't match. I'm wondering if those numbers were including the buyer's state taxes.
You can't go by the amounts in your Payouts. The 1099K contains the total transaction [money received from buyer] on the transactions in the Payouts in 2021.
Payout numbers are less shipping if printed through Ebay, less refunds and less fees. So disregard using the numbers in a payout, pay attention to the transactions.
On the Ebay detailed report you can run for your transactions for the year, there is a column that contains the Payout dates. Those are the transactions that should appear on your 1099K each month. From this report it would be easier to sort it down to be what you need.
@byrd4 wrote:I am in Maryland and I got a 1099 as well that I did not know was coming. Apparently MD was added to the list in 2021 of states that will send a 1099. I sold a couple thousand dollars of my mom's paper dolls that I do not have receipts for, and they were almost all surely sold below what she paid for them. I will have to bite the bullet and pay around $500 in additional taxes because of this because I won't be fudging numbers and hoping the IRS won't audit me. Yes, my panties are a little in a twist. Yours would be too.
You should probably check with a licensed CPA that is familiar with Internet selling as not all are. it would be one thing if you owned the dolls, but since you don't and they belong to your Mother that could change things.
I remember paper dolls when I was growing up and they weren't all that expensive. Today's value certainly would be much different but then that isn't the same.
I don't see why you would need to pay $500 in taxes. I think you are making assumptions without actually looking into how the rules are written.
When I sell the occasional something for one of my kids, I write them a receipt for whatever I sold it for less all costs. So in my books I'm even.
If you like this one. Please come to this thread, there is even more information.
