1099K

[5kidsports01]

I am looking at my total sales for this year - what number does Ebay use to report to the IRS ?  do they use -- Total sales (Includes taxes)    or    Net sales (Net of taxes and selling costs) ???  i am over transactions -200 but not sure what number to use so i do not go over the 20,000 threshold....  thanks ... 

[dbfolks166mt]

IRS for the year 2023 is only requiring anything over $20,000 in internet sales must be reported to IRS and State in Form of 1099K......what Ebay does is up to Ebay......in year 2024 The IRS is requiring anything over $5,000 in internet sales be reported in 1099K.......but what IRS require and what Ebay is going to do could be 2 different things......Ebay may go ahead and file a 1099K on you regardless, that was the original plan from the IRS

     For tax year 2023 there are 8 states that already have lower thresholds for 1099-K issuance and the delay in the Federal threshold does not negate those state limits. For 2024 what the Federal limit will be is TBD at the moment until Congress manages to push a bill through to change the level. That will still do nothing to negate the state laws currently on the books or any that may pass between now and 31 December 2024. 

     I am still sitting around waiting for all my tax forms. I just got the INT statements from all but 1 of my banks the SSA-1099 but I have a LOT that I am still waiting on. 

[dbfolks166mt]

I'm trying to enter my  eBay sales on Turbo Tax online.  From the post above mine, I'm thinking I need to enter the yellow arrow "Orders" as my income in Turbo Tax.  However looking around on Turbo Tax isn't very clear where I enter it.  I didn't get a 1099K as my sales didn't meet the limits.  So do I enter it as Self Employment or Other Common Income?   Thank you.

     I am not familiar with Turbo Tax but generally most of the tax software programs have pretty good help files or a help line you can contact. You can also contact the IRS at 1-800-829-1040. 

[carbideliquidator]

That's correct...The IRS wants you to claim any and all income on your income tax return......but Ebay sales is gross sales, not net profit....in business you are taxed on net profit, not gross sales.....selling on Ebay is a business.......you have to deduct your cost of goods, expenses, and anything else you spend to sell on ebay.....that gives you net profit.....that's what you want to report as income.....if you file Ebay's gross sales without deductions, you are going to get over taxed by tons !

[carbideliquidator]

Yes, you are correct on state......but people still need to understand, Ebay gross sales are not net income which you are taxed on......if people are going to pay taxes on Ebay's gross sales reporting....they're going to get killed in taxes for no reason....I have an accountant do my tax returns, due to all the tax deductions involved in running a business......and if you are selling on Ebay, it in itself is a business....and you deserve all deductions involved.

[dbfolks166mt]

Yes, you are correct on state......but people still need to understand, Ebay gross sales are not net income which you are taxed on......if people are going to pay taxes on Ebay's gross sales reporting....they're going to get killed in taxes for no reason....I have an accountant do my tax returns, due to all the tax deductions involved in running a business......and if you are selling on Ebay, it in itself is a business....and you deserve all deductions involved.

     I could not agree more I did taxes for people for years. My main point in bringing up the state thresholds is apparently a lot of people are in a big rush to file their taxes. EBay has until 31 January to issue the 1099's. It would be a shock to have filed your taxes and then have a 1099 show up and have to file an amended return. 

     Even though I used to do taxes for people I will give out very little advice on this forum since each person's taxes are different and to provide sound advice would require posters to disclose WAY to much information to go into a public forum. 

[carbideliquidator]

I'll bet my tax return is  20 pages long...it has to have  schedule "C" for profit or loss from business.....now Ebay sales might not be near as intense as my business return....but you still have to declare cost of goods at the very least, but there's more expenses than just cost of goods selling on Ebay......that's where schedule "C" comes in .....I'll bet a lot of people are going to pay taxes on their Ebay gross sales......The IRS and government will love them ! 

[luckythewinner]

---

@srlnclt wrote:

I'm trying to enter my  eBay sales on Turbo Tax online.  From the post above mine, I'm thinking I need to enter the yellow arrow "Orders" as my income in Turbo Tax.  However looking around on Turbo Tax isn't very clear where I enter it.  I didn't get a 1099K as my sales didn't meet the limits.  So do I enter it as Self Employment or Other Common Income?   Thank you.

---

I file a schedule C andn report my eBay sales like a business would, so that I can take advantage of all my deductions. 

I would never reply on eBay to give me the numbers for income or expenses. 

I download a transaction report of all my transactions for the year, and total them all up myself. 

I report my gross income, deduct and refund and returns. Then I report my eBay fees, my shipping costs, my office expenses shipping supplies, my mileage, my standard home office deduction, and my cost of goods sold. 

[carbideliquidator]

You're doing it correctly 

[luckythewinner]

---

@carbideliquidator wrote:

You're doing it correctly 

---

Married 30+ years to an IRS revenue agent who was also a CPA 🙂

[nobody*s_perfect]

---

@carbideliquidator wrote:

I'll bet my tax return is  20 pages long...it has to have  schedule "C" for profit or loss from business..... 

---

?? Schedule C is one page. Well, 2 sides of a page.

[mr_lincoln]

---

@luckythewinner wrote:

---

@srlnclt wrote:

I'm trying to enter my  eBay sales on Turbo Tax online.  From the post above mine, I'm thinking I need to enter the yellow arrow "Orders" as my income in Turbo Tax.  However looking around on Turbo Tax isn't very clear where I enter it.  I didn't get a 1099K as my sales didn't meet the limits.  So do I enter it as Self Employment or Other Common Income?   Thank you.

---

I file a schedule C andn report my eBay sales like a business would, so that I can take advantage of all my deductions. 

I would never reply on eBay to give me the numbers for income or expenses. 

I download a transaction report of all my transactions for the year, and total them all up myself. 

I report my gross income, deduct and refund and returns. Then I report my eBay fees, my shipping costs, my office expenses shipping supplies, my mileage, my standard home office deduction, and my cost of goods sold. 

---

@luckythewinner   And the mileage deduction this year is a whopping 65.5 cents per mile!!!  CHA CHING!

[carbideliquidator]

I'm talking about my total tax return, including schedule C......8879,4868,9325,1040-sr,schedule 1, schedule2, schedule3, schedule C, schedule D, schedule SE, 8995, it1040, schedule it bus, schedule of credits...it's done by an accountant

[nobody*s_perfect]

I see. When I started using TurboTax, I was astonished at how many pages my return was, compared to when I had just done it myself.

[carbideliquidator]

I use to do family short form returns ...and my own long form returns...it took me days to read up on the changes the IRS made every year...now it's just too complicated for my business, and too complicated for my concentration...let my accountant do it  

[mam98031]

---

@carbideliquidator wrote:

IRS for the year 2023 is only requiring anything over $20,000 in internet sales must be reported to IRS and State in Form of 1099K......what Ebay does is up to Ebay......in year 2024 The IRS is requiring anything over $5,000 in internet sales be reported in 1099K.......but what IRS require and what Ebay is going to do could be 2 different things......Ebay may go ahead and file a 1099K on you regardless, that was the original plan from the IRS

---

@carbideliquidator 

That is incorrect.  IRS said they were "PLANNING FOR" 5k, not that it was a done deal.  We simply don't know yet what they will do for 2024 and won't likely know for many months.  Anything could change between now and then.