1099k

[selzstuff]

I am still not sure about the 1099K.  Now with managed payments I understand that this will not be the amount  reported on the 1099k.  I am not sure if the gross amount that the will be reported will still have all sales taxes paid by the buyer, the ebay fees and the shipping labels costs.  I do understand that refunds will not be shown on it but I am still  not understanding exactly what will be in the gross amoung.

[wildpitchsports]

From what I understand it will include everything involved with the sale that you received funds on.

That includes sales tax by buyer and and shipping charges that the buyer paid. So basically the entire amount of the transaction you received.

[heckofagame]

The 1099-k totals DO NOT include the sales tax. 

[selzstuff]

Thank you.

[nobody*s_perfect]

The 1099-K will include your gross payments received from buyers, without deducting any expenses such as postage or eBay fees. It's up to you to total those up and enter them on the appropriate lines as deductions on your Schedule C.

The only exception is sales tax. This Help page says that sales tax won't be included in the total.

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794#section3

[wildpitchsports]

Sorry I mis-spoke, sales tax is not included on the 1099K, all apologies. 

[richards*collection]

I added up your sales, good job. I think this could fall into the household goods garage sale category, so no big deal, I wouldnt even worry about it at this point, keep good records of input and output of funds, tag the reciepts what they are for, and thats all you can do. If your lucky,  and have mass sales and turn out to be some kind of a viral seller, you can get a taxman to do your tax things. Selling is your hobby I would venture, at this point. Happy selling!

[jayjaspersgarage]

So even though you may have never received a 1099K over all the years you have sold on-line here and who knows where else how did you pay taxes on your net profits from 1357 sales transactions?  

I think for a clear answer you need to call the IRS and let them know how long you have sold on-line.  They will be glad to look at your complete sales history here on ebay and will explain everything.

[stuff4divas]

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@selzstuff wrote:

I am still not sure about the 1099K.  Now with managed payments I understand that this will not be the amount  reported on the 1099k.  I am not sure if the gross amount that the will be reported will still have all sales taxes paid by the buyer, the ebay fees and the shipping labels costs.  I do understand that refunds will not be shown on it but I am still  not understanding exactly what will be in the gross amoung.

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info here on an ebay announcement >

https://community.ebay.com/t5/Announcements/A-big-change-to-federal-tax-reporting-laws-that-will-aff...

[socalsan1]

Hello,

I just got this message from Ebay about the 1099K. It's so outrageous that it feels like spam. Did anyone else get this email? What the hell Ebay? 

Thanks readers.

- - - 

A recent technical issue resulted in a 1099-K form being incorrectly provided to you. Please disregard the incorrect 1099-K form. The incorrect 1099-K form was not sent to the IRS or Franchise Tax Board.

We’re working to resolve the issue and ensure that it will not happen again. Unless you had more than $20,000 in gross sales and 200 transactions in 2021, we will not submit a 1099-K form to the IRS or the California Franchise Tax Board.

We sincerely apologize for the error and any inconvenience this may have caused.

As always, thanks for selling on eBay, and for being part of the eBay community.

The eBay Selling Team

[buyselljack2016]

@socalsan1 

From reading other threads, t hat seems to be a message that is on the up and up.

Some CA. sellers were sent a 1099-K when they should not have gotten one this year.

Changes nothing about reporting income for 2021. Just don't have to worry about your figures matching up with the #'s on a 1099.

[prabs403]

After going thru a few hours of confusion, panic, and mostly reading these threads (ebay support wasnt much help) i think i am getting a clue about this ebay 1099-K. while trying to reconcile the 1099-K yearly/monthly boxes with ebay monthly/yearly sales reports, and realizing total mismatch, so far i have gathered (from reading these threads for hours),

1) 1099-K does NOT include the refunds from cancellations & returns 

2) 1099-K does NOT include taxes collected by ebay

3) 1099-K monthly figure is basically order total (paid by buyer minus tax that ebay collected) for transactions that are part of payouts issued in that month (doesnt matter when those transactions actually happened).

Am i correct on all of the above? assuming yes, that went a long way towards getting the figures to match close enough.  So a confirmation on this would help me move along onto filing.

[rabites-n-chocobos]

Look at your your credit/debit card. Add up the Ebay payments, and subtract the losses (Shipping supplies, what you bought to resell, gas,  etc).

[slippinjimmy]

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@prabs403 wrote:

After going thru a few hours of confusion, panic, and mostly reading these threads (ebay support wasnt much help) i think i am getting a clue about this ebay 1099-K. while trying to reconcile the 1099-K yearly/monthly boxes with ebay monthly/yearly sales reports, and realizing total mismatch, so far i have gathered (from reading these threads for hours),

1) 1099-K does NOT include the refunds from cancellations & returns 

2) 1099-K does NOT include taxes collected by ebay

3) 1099-K monthly figure is basically order total (paid by buyer minus tax that ebay collected) for transactions that are part of payouts issued in that month (doesnt matter when those transactions actually happened).

Am i correct on all of the above? assuming yes, that went a long way towards getting the figures to match close enough.  So a confirmation on this would help me move along onto filing.

---

Yes, Yes and Yes......

My advice, keep your own records (using the raw data eBay provides) on the revenue side and not worry about trying to reconcile your own numbers to what eBay shows on the 1099K unless they are WILDLY out of sync on the annual total.

[dbfolks166mt]

     You got it. One thing to remember is what you put in your schedule C may or may not be the gross revenue on your 1099. What you enter in schedule C is based on your own records depending on the accounting method you utilize which you will have to put on the schedule C. 

     There is a possibility that the 1099 may not match your records especially if you had sales in the last 2 weeks in December or you are a new seller and eBay holds your payments for an extended period of time.