1099k

[s_and_p_interiors]

Does anyone know exactly what information will be on the eBay 1099? For example, on an $80 sale including $8.30 shipping, ebay took their $11.20 portion (I’m not looking at exact figures as I write this). They transferred $68.80 to my bank, then debited the $8.30. Subtracting the $8.30 shipping left me with $60.50 net. 

I would have no problem with eBay reporting that they sent the $68.80 to my bank. For IRS purposes, I would document the shipping cost plus the original cost and any other applicable expenses to arrive at my net profit or loss on that sale.
I would definitely have a problem with eBay if they show an $80 payment to me on the 1099,  since the $11.20 they took is THEIR income (not mine) that should be reported by them to IRS. 
i need to get a solid (not opinion) answer to know if I need to begin reaching out to my state and federally elected officials before we get to the end of the year.

Thanks in advance for any insight you can provide. And just fyi to the community, this affects you if you sell more than $600 in the calendar year, which many of us do.

[kensgiftshop]

What the buyer paid for the item and shipping will be on the 1099K.

You deduct fee's and your shipping when you file your taxes.

[monica-sells]

The "top line" (gross amount) on ANY 1099K form from ANY entity, is the TOTAL Amount of funds processed for you on your behalf.

So...if you have a sale for 15.00 (10.00 + 5.00 shipping), that 15.00 is what is reported.

That is not opinion, that is fact.....

YOU are responsible for reconciling (deducting) any expenses, fees, etc... incurred to procure that $15.00....

Remeber the basics

a 1099 Form is an informational form....all it does is report information

YOU need to reconcile that information for your own individual scenario

[dbfolks166mt]

      As others stated what you see on the 1099 will be all the funds that were processed in relationship to the transaction except the sales tax which they collect directly from the buyer. In your example what will be on the 1099 is the $80. 

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

     As a side note eBay has not updated this help file and the years and 1099 issuance figures may or may not be correct depending on what state you live in and what the Federal government decides to do with the 2023 issuance limit if they are ever able to decide.

[lacemaker3 · Accepted solution]

@s_and_p_interiors 

eBay is required to report the gross (total) amount of all payments from buyers that were processed into your Manged Payments account. That includes purchase price plus shipping, but does not include sales tax as that is not processed into your MP account. eBay is not allowed to deduct any amounts that were refunded for cancelled transactions, or which were used to pay eBay fees or purchase shipping labels.

This means that they do not report the amounts that were transferred to your checking account. This is consistent with how all payment-processors prepare the 1099-K forms, following the IRS instructions (see below). You will need to keep track of all deductible expenses so you can reconcile the information when you file your taxes.

What's included in Form 1099-K:

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

Instructions for Form 1099-K (Rev. January 2022)

https://www.irs.gov/pub/irs-pdf/i1099k.pdf

[coolections]

Every single Penney the buyer paid which included your asking price, the shipping cost, the state tax, any foreign tax etc.

[lacemaker3]

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@coolections wrote:

Every single Penney the buyer paid which included your asking price, the shipping cost, the state tax, any foreign tax etc.

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No, sales tax (or VAT or GST, etc.) is not included in the 1099-K. Those amounts are not processed into the seller's managed payments account. They are paid to the government in question.

[coolections]

OK, so it is just the listing price and the shipping cost. Thanks.

[s_and_p_interiors]

Thank you all for your responses. It will be a pain to reconcile this, but it’s early enough to create the ledger column and include the eBay fee(s) in a separate column along with the monthly store fee. 

[monroe67]

"Does anyone know exactly what information will be on the eBay 1099? For example, on an $80 sale including $8.30 shipping, ebay took their $11.20 portion (I’m not looking at exact figures as I write this). They transferred $68.80 to my bank, then debited the $8.30. Subtracting the $8.30 shipping left me with $60.50 net."

No state sales taxes?  Most states do charge them on most categories of items.  AND many states also charge their sales tax percentage on the postage charge that the buyer pays.  

"I would have no problem with eBay reporting that they sent the $68.80 to my bank. For IRS purposes, I would document the shipping cost plus the original cost and any other applicable expenses to arrive at my net profit or loss on that sale.
I would definitely have a problem with eBay if they show an $80 payment to me on the 1099,  since the $11.20 they took is THEIR income (not mine) that should be reported by them to IRS."

The amounts that eBay must print onto your 1099-K are determined by laws and regulations.  
             If you "have a problem" with those numbers, you should probably try to get past that problem.  
As poster "kensgiftshop" stated, the 1099-K will show the amount your buyer paid for the item and the shipping. 
(Even if a buyer did pay sales tax, that amount is not included in the amount that eBay needs to report on the 1099-Ks.)  
In this case, according to numbers given in your own example, eBay would report $88.30.
eBay's fees of $11.20 and the postage cost of $8.30 would be deductions that you would then report on your tax return and related schedules or attachments.  

"[I] need to get a solid (not opinion) answer to know if I need to begin reaching out to my state and federally elected officials before we get to the end of the year.

Thanks in advance for any insight you can provide. And just fyi to the community, this affects you if you sell more than $600 in the calendar year, which many of us do."

I am curious why you feel a need to get a "solid answer" to this question on May 2, 2023. 
It's still quite early in the year.  There are almost eight full months before the end of the year. 

However, it looks like you might  have sold close to $400.00 so far, which is only a rough estimate of the total of your item prices.  If you're terribly worried, you'll have to refer to the monthly reports eBay creates for your selling ID and see how close to $600.00 you actually are right now.  You might decide for yourself not to (try to) sell anything else on eBay this year.  

By the way -- your reaching out to your "state and federally elected officials" might get you a form "Thank You" letter response at best.   But, good luck.  

[monroe67]

"Every single Penney the buyer paid which included your asking price, the shipping cost, the state tax, any foreign tax etc."

State sales taxes paid by eBay buyers are not  included in the amounts reported on eBay's Form 1099-Ks.
 

[chapeau-noir]

This is easy to look up.

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

There is also a great deal of information on line.

[s_and_p_interiors]

First off, I’m not sure where you’re getting your numbers. I am WELL past that $600 threshold this year. And I asked for a solid answer because many people on blogs begin with “I think” or “I believe “. I thought that would be obvious.

I’m in Florida. No sales tax.

I am aware that the IRS specifies what entities must report. And I have been quite adept at working through problems I encounter in my life.

As for reaching out to elected officials, if that has been your experience, sorry to hear it. It hasn’t been mine…. at all. I’ve been able to connect with key people in politics and the corporate world when I’ve had a need to.

thanks for your opinions and good luck to you as well.

[stainlessenginecovers]

So do you feel you now got a 'solid' answer? 

[buyselljack2016]

No sales tax in Florida??????

Since when?????