1099K / reports mismatch?

[goldazar]

Number of issues I'm trying to understand:

1. I'm totaling my transactions from Jan 1 to Dec 31, 2022 (including taxes collected by ebay) and my 1099 is about 5% higher.

2. I'm generating all my labels on eBay . When I total my shipping labes cost I get total about 20% lower from what it shoes under Performance > Selling costs > Sales Last Year > Shipping Lables Cost

3. I cannot find promotional listing fees in reports, did they forget to include it?

Something doesn't make sense here... any ideas?

[mam98031]

Keep in mind that Ebay does NOT account for your sales by transaction date.  They do it by Payout / Settlement date.

So if you are on a Weekly payout, the last one that would be on your 2021 1099K would be December 28th.  The balance of the month will be in 2022 tax reports.

See if that will help you.

[downunder-61]

https://community.ebay.com/t5/Selling/1099-K-Reported-Amounts-Double/td-p/32664395

https://community.ebay.com/t5/Selling/1099-K-Reported-Numbers-Do-Not-Match/m-p/32664343#M1931703

Other seller have reported this happening -

[goldazar]

Even considering Dec 28 the differences are too high. I have just called ebay, they checked my totals and sent it for review as total reporting AND shipping cost expenses do not match even their performance page

[mr_lincoln]

@goldazar   I use the CSV formatted databases and generate the info I need for Sold totals, refunds, shipping, fees, etc. ... I sell on consignment at other venues so those total sales numbers get folded in to what I report.  eBay's (and previously PayPal's) 1099 K  is simply paperwork to include with the tax return, I report more then what they state anyway.

Last year was a partial year for eBay 1099 K reporting, their total was off by just over $ 600 ... meaning, from their own CSV records I was showing more sales then they listed on their 1099 K ... I found out why and it pointed to bad accounting practices on their end, their issue, not mine. 

The 1099K just came out yesterday so this month I'll take a look at it and see what they are reporting ... I will not be surprised if the numbers do not match ...

[rfmtm]

Your ebay 1099 includes all gross funds processed that buyers paid with the exception of sales tax collected by ebay.  Besides not including ebay sales tax, it also does not include any refunds to buyers, fees, or other expenses.

Suggest you sort and subtotal from the transaction report here:

https://www.ebay.com/sh/fin/report

[goldazar]

The 1099K contains total amounts processed by the vendor including taxes. I did compare transaction report to 1099K and it doesn't match

[mr_lincoln]

@goldazar   The eBay 1099k does NOT include Sales Tax (and some other items), below is from their Help Pages statement:

What's included in Form 1099-K

As Form 1099-K is an IRS information return, it includes the gross amount of all reportable payment transactions within a calendar year. This amount does not include any adjustments, for example, credits, discounts, fees, refunds, or any other adjustable amounts. This means that the gross amount on your Form 1099-K may not be the final reportable amount on your tax return. You should consult your tax advisor to determine how best to use the information on your Form 1099-K when filing your personal and/or business income tax return.

If there's an issue with any transaction on your Form 1099-K, you can contact us with the item number and any relevant information about the transaction.

Additionally, Form 1099-K does not include the sales tax when it is automatically collected and remitted by eBay.

[rfmtm]

Then something is wrong.  Ebay collected sales taxes are not included, because those funds go directly to ebay and are not processed through your account.  The only sales tax would be included are those you collect yourself.

From ebay help, see last line:

What's included in Form 1099-K

As Form 1099-K is an IRS information return, it includes the gross amount of all reportable payment transactions within a calendar year. This amount does not include any adjustments, for example, credits, discounts, fees, refunds, or any other adjustable amounts. This means that the gross amount on your Form 1099-K may not be the final reportable amount on your tax return. You should consult your tax advisor to determine how best to use the information on your Form 1099-K when filing your personal and/or business income tax return.

Additionally, Form 1099-K does not include the sales tax when it is automatically collected and remitted by eBay.

[coffeebean832]

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@goldazar wrote:

The 1099K contains total amounts processed by the vendor including taxes.

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eBay-collected sales tax is NOT included.

Seller-collected sales tax IS included.

Orders that resulted in cancellations and returns are included in the gross totals.

[goldazar]

According to my 1099K totals taxes are included

[goldazar]

Even when I sum ALL of my gross transactions for 2021 (which include refunds, partial refunds and cancellation) I get total 7.1% lower total than 1099K. How would you explain it?

[babclassics]

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@coffeebean832 wrote:

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@goldazar wrote:

The 1099K contains total amounts processed by the vendor including taxes.

---

eBay-collected sales tax is NOT included.

Seller-collected sales tax IS included.

Orders that resulted in cancellations and returns are included in the gross totals.

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Mostly agree but am seeing some cancellations that DO appear on my sales reports but do NOT appear on the 1099-K gross.  For what I can tell so far it depends on weather or not they "posted".  Not sue how I am supposed to know that?  Am guessing that transactions that were cancelled quickly don't post?  Cancelled transactions that posted and were refunded when cancelled do show (on 1099) even if cancel was within just a few hours..  Still trying to find a pattern.

Needless to say my monthly book keeping by sales date makes it a royal pain to reconcile the 1099-K monthly details reports. The month by month 1099-K details are based on posted date, not sales date.  I can deal with that... ughhh, but this canceled transactions duality has me stumped.  So far am off by about 2000 between my books and the 1099-K,  Don't recall this ever happening with the PayPal 1099-K from past years.

[goldazar]

I have just separated cancellations from orders and I can confirm that cancellations are NOT inclucluded on 1099-K. Without cancellations my total gross amount matches 1099-K pretty close.

[rfmtm]

Great you are getting close.  I don't think it will ever be exact as the transaction report is ebay generated and the 1099, I am assuming is generated by the payment processor Ayden.  So I assume any slight difference in posting times would cause something to be off at the beginning and/or ending of a month or year.