eBay

jbseller4 · ‎02-01-2023

I have to file a 1099K. How do I determine my shipping expenses that sort of thing out of that they give you a lump sum.

luckythewinner · ‎02-01-2023

@jbseller4 wrote:
I have to file a 1099K. How do I determine my shipping expenses that sort of thing out of that they give you a lump sum.

You determine your shipping expenses by totaling how much you paid for shipping. That is not what the 1099-K is intended for.

You need to go to all the places where you purchased shipping (stamps.,com, PayPal, eBay, etc. ) and total up your shipping label costs.

On eBay, I do this by going to the Sell Hub > Payments > Reports and exporting a Transaction Report and summing up the shipping label transactions.

creativecrisis · ‎02-01-2023

Check out Reports under the Payment tab in your seller hub. You can run reports for shipping labels, fees, and other expenses that you may be able to deduct.

Just my personal opinion ... I find it easier to keep my own records for tax purposes than to use eBay's reporting functions. I have a simple spreadsheet where I capture postage costs and fees for each sale. By the end of the year, I have a complete record. I use a business credit card to pay for supplies and other deductible expenses, so it's easy to identify them at at tax time. If my business was larger/more complex, I might consider using software like Quick Books to streamline the accounting process.

caldreamer · ‎02-01-2023

EBAY has new "easy to read" 1-page reports that shows YTD totals for (orders, refunds, EBAY fees, SHIPPING EXPENSE). Go to PAYMENTS, REPORTS (on left-hand side click on "REPORTS (NEW)". Enter time period 1/1/2022 12/31/2022.

Other expenses that can claim are (mileage, cost of goods sold, packing supplies, office supplies, shipping expense). If you have "home office" or store your inventory in your home you can deduct % of your rent & utilities. You need to determine "square footage" of your home and what % is being used for business.

Anything used for your business can be deducted on Schedule C of tax form. You must file as a "business" in order to take deductions.