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]

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@quickstorevegas wrote:

My 1099k is not correct too. Please add me to report

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More info please.  Not correct how?  How much is it off by?  This matters as you may not be looking at the Gross Receipts they report accurately.  You may find this thread helpful.  Lots of valuable info.

https://community.ebay.com/t5/Selling/1099K-Information-for-2021-amp-2022-via-Ebay-PODCAST-2-1-22/td...

[tealt]

Thank you for posting, Jasmen.

Is it too late to get my name on this list? 

My main issue is why I got a 2021 1099K at all, but the one I did get also doesn't match the number I generated from MP transaction reports.

[fixintoscrap]

I've started tagging seller comments with Double Trouble for those who are having a gross income that's double the actual amounts.

If you're having the doubling problem on your 2021 tax year 1099-K gross income, then please tag your comment with Double Trouble and I'd suggest subscribing to the 1099-K - Reported Amounts Double thread thread so we're not mixing topics and having conversations all over the place.

If you're not sure, you can compare your monthly "1099-K details" tab amounts to your yearly "1099-k forms" tab amount.

If you have an issue that's not related to the gross income being double, then please check the other recent 1099-K threads for other topics and issues.

[mam98031]

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@tealt wrote:

Thank you for posting, Jasmen.

Is it too late to get my name on this list? 

My main issue is why I got a 2021 1099K at all, but the one I did get also doesn't match the number I generated from MP transaction reports.

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@tealt 

Was your doubled?  In previous conversation, I did not pick up on that.  Sorry I missed it or I would have suggested this for you.

[mam98031]

@fixintoscrap 

Just a small correction.  1099Ks do NOT report Gross Income.  They report GROSS RECEIPTS.  That is all funds received into your MP account before any kind of deduction is taken for anything.

[fixintoscrap]

We have at least two confirmed fixes of the 1099-K doubling issue on the doubling-specific thread.

They will need to re-issue these to the IRS as well, and we'll most likely get a new paper copy in the mail.

[dolcetreasures]

Everything eBay touches turns to ….

[kingroc74]

Hi,

I have been selling on eBay since 2000 and was told that next year(now) we will have a 1099 form issued by eBay. I used to be the CEO of my own company and do this to earn income for my granddaughter to go to college instead of just giving it to her! She helps!

My concern is now, after looking at the form sent by eBay, BY MISTAKE, I see extreme difficulty and expense getting the information to my old bookkeeper. 

By sending us a gross income report it, without question, bumps all sellers up to a new level and exposure to taxes. The increase in income includes shipping and any taxes paid, in addition to selling fees, etc.

To have to break this all down is huge for sellers such as myself and the bookkeeping expense is even larger. We have to look at each sale and figure out what portion of the sale is the seller value fees and what portion is the 10% eBay has taken takes out for shipping. Amazing that we have to have eBay take out 10% on the shipping cost because it almost forces us to fabricate a shipping cost higher to cover what we pay eBay on this. 

The least eBay could do for sellers, if they truly want to keep them, is send the sellers a separate sheet that breaks down each expense for each item monthly. If not monthly then send one prior to the1099 they send out at years end.

I understand the responsibility eBay has to the IRS now, but they also have a responsibility to their sellers that could be met by a breakdown such as I have outlined above. I know my wife has sold as long as I have on eBay but she is going to shut down her operations completely due to exposures eBay will be exposing everyone to.

I'm willing to stay on eBay but eBay has to provide us with an honest report that shows us (and the IRS) a complete breakdown that illustrates their profit from our selling!

I hope you can give me a proper response to my query,

KingRoc74

[mam98031]

IDK, I've successfully ran a business here for over 20 years.

[mam98031]

@kingroc74 

Ebay isn't doing this to annoy you or cause you extra work, it is FEDERAL LAW.  It applies to ALL Marketplaces that have their own money processing programs and all Money processors like PayPal.  It is NOT specific to Ebay nor can they change the law.

FYI, the 1099K has NEVER been a Gross Income report.  A 1099K reports GROSS RECEIPTS which is different.  It is the total amount of money that came into your MP account BEFORE any deductions for refunds of any kind or expenses.  

On your Federal Tax Report you will be able to deduct all your expenses on the appropriate form to arrive at your Net Income which is what you would be taxed on.

Ebay's FVF on shipping or the items you sell haven't been 10.2% since the day you entered MP.

https://www.ebay.com/help/selling/fees-credits-invoices/store-selling-fees?id=4809

Why should Ebay have to send you a report that tells you the fees or the breakdown of any transaction.  This information is available to sellers 24/7 on the Seller Hub under the Payment tab.  All you have to do is run the reports.

You appear to be very misinformed and are blaming things on Ebay that Ebay is NOT even doing.  Some research and learning is in order so that you and your wife have a better understanding.

[kingroc74]

An interesting response! I never said eBay was doing this to annoy me, so please do not misquote me.  

I could not help but notice you failed to mention those parts you chose not to discuss. 

As for the final selling value or FVF it is exactly 11.7% pus 30 cents  on every sale. But, what you failed to mention is that we now have to go back to every sale, and "Break out" or compute what portion of that sale was at that percentage(11.7), and what portion is eBay's "Cut" on the shipping. I remember the rationale back in the day when eBay said they were taking a cut of the shipping because too many sellers were selling items cheaply but then making their money on the shipping. That is still hilarious rationale, but it is your game so we have little recourse.

You also did not address the fact that by eBay, adding the shipping to our total, automatically puts sellers into a higher tax bracket where we now have to deduct the eBay "Cut" for the shipping in order to reduce our exposure to taxes. You also did not address the fact that we have to be less than honest when we compute shipping costs. Unless we honestly tell buyers that eBay takes 10% of our total shipping costs we have to not be truthful or absorb that percentage.

For the record, I am happy to state that I retired in 2002 after I sold my company, and since then have done this as a fun experience so my grand daughter could end up running this business. But, she is studying law at Stanford and will become a corporate Attorney, with little interest in pursuing our efforts.

As a mom and pop operation we did not have to run all these reports so certainly there is concern, but I know the IRS has been looking at all the internet stores and/or selling places, so again, I did not place the blame on eBay, I simply was perplexed why we have to run reports on money eBay takes from us.

I spent my life running my own company and had to deal with the IRS in my own business and had hoped I left this all behind, but not!

We will see where this all goes! If it works great! If not, we all know we said what we had to say!

At 79 years of age I do miss things but not that many!

[rfmtm]

@kingroc74  Normally you would do all the bookkeeping of all your expenses, but here ebay has done some of it for you.  When you export the your transaction report, is it a simple matter to sort and subtotal as needed in a spreadsheet or accounting program.  Then you have a total of expenses like fees or shipping costs to include as deductions on your Schedule C tax form.   Any accountant is familiar with this type of report.

[slippinjimmy]

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@fixintoscrap wrote:

We have at least two confirmed fixes of the 1099-K doubling issue on the doubling-specific thread.

They will need to re-issue these to the IRS as well, and we'll most likely get a new paper copy in the mail.

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eBay don't need to re-issue to the IRS because they haven't sent ANY to the IRS yet.

They are required to provide the 1099k to taxpayers by Jan 31 but they don't need to provide them to the IRS until Feb 28th.

[mam98031]

@kingroc74 

"I never said eBay was doing this to annoy me, so please do not misquote me. "  You are absolutely correct, nor did I say I was quoting you.

"I could not help but notice you failed to mention those parts you chose not to discuss. "  While I may have missed something, that is a HUGE ASSUMPTION that it was because I didn't want to discuss whatever it is you feel I missed.  I am just merely human and sometimes I miss something, it is nothing more than that.

"As for the final selling value or FVF it is exactly 11.7% pus 30 cents  on every sale."  Yes for many categories for sellers with a store level Basic or higher.  And yes as long as you sell in the categories that carry that fee, that is what you will be charged now that you are in MP.

"But, what you failed to mention is that we now have to go back to every sale, and "Break out" or compute what portion of that sale was at that percentage(11.7), and what portion is eBay's "Cut" on the shipping."  That is what you think I missed?  That would be bad on me as I didn't notice this statement in your previous post or I would have posted something.  

There is no need for you to break out anything.  You are charged 11.7% on whatever the buyer pays you.  If you have separately stated shipping on your listings, like $20 for the product and $10 for shipping, you pay the 11.7% on $30.00 plus a 30 cent per transaction fee.

Sellers fees on the product and the shipping are exactly the same.  One fee fits all so to speak.

"You also did not address the fact that we have to be less than honest when we compute shipping costs."  That simply isn't true.  While some sellers thing shipping is only for the exact amount that the you pay for shipping, that simply is NOT true.  It is called S&H for a reason.  Shipping and Handling.  For the handling charge you can add any direct cost to shipping that is appropriate as long as it is true and reasonable.  Ebay has always allowed this.  There are costs beyond actual carrier costs that are legit.  Packaging materials and fees to just name a couple.  So while you may be someone that only wants to charge a buyer for the exact amount you pay the carrier, that is just fine, but it doesn't make other sellers that don't do that wrong. 

But for you, it means you need to add the costs that you are not adding to your shipping price in with the costs of your product and take it into consideration when you price your product.  You need to cover you costs in one place or the other.  Whichever is best for you is fine.  Both methods are acceptable.

Seller do NOT have to tell buyers how they develop their pricing of anything, nor should they.  It is not something that is necessary to share.

The income you have earned while selling on Ebay has ALWAYS been something that was reported on your Federal Tax Returns whether you got a 1099K or not.

The rules for internet sales have some differences from what is required of a B&M.

[dhowardpeters1]

I am also having issues.  It is particularly concerning that my sales report, transaction report and 1099 all have different totals.  The only categories I have found to match perfectly are the fvfs.  I fully account my business in QuickBooks through the year as well, and I have found reconciliation of the eBay MP account to be  impossible.