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.

[kosmosattik]

"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. "

Write your congressman because eBay has no control over what they report on your 1099.

[kosmosattik]

"No sales tax in Florida??????  Since when?????"

Sure, Florida has a sales tax but it doesn't even matter.   Sales tax is based on the buyer's shipping address not the seller's location.   Sheesh.

[slippinjimmy]

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@dbfolks166mt wrote:

      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.

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What is there to update? The threshold for 2023 is back to the $600 level unless changed before December 31.

[monroe67]

"First off, I’m not sure where you’re getting your numbers. I am WELL past that $600 threshold this year . . . . ”

E-v-e-r-y number I put into my response came directly from one of your posts.  

Except where I stated that it looked like you might have sold around $400 so far this year.   
All I can see of your sales this year only goes back to February.  I only did a brief addition in my head of the item prices shown there.  The only person who can see precisely what all your eBay sales are is you -- and eBay's computers, of course.  

"I’m in Florida. No sales tax."

Gosh.  People I have sold to in Florida might want to know that info, because they have paid sales taxes on their purchases. 

HOWEVER -- this thread is about the reporting on Form 1099-K.  Sales taxes paid by your buyers (to their own states) are not included in the amounts shown on Form 1099-K, which is sent to sellers.   

"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."

Well, OK, then.  
I don't even want to know how your senators, Marco Rubio or Rick Scott, or whoever your own representative is may somehow be able to exempt you from receiving a Form 1099-K for your eBay earnings over $600.00.   Or somehow be able to exempt you from paying all appropriate income taxes on those earnings.   

[susanb1872]

Do you mean to say no Florida state income tax?

[s_and_p_interiors]

Yes, many in fact. And appreciated!

[s_and_p_interiors]

Sorry, income tax.

[s_and_p_interiors]

Yeah, my bad on my original comment. I meant income tax.

[s_and_p_interiors]

Last point first - of course I’m not going to be exempt from existing IRS guidelines. I neither said nor indicated that. But if a change in IRS policy is made, it is made at the federal level by our representatives. 

And, no, every number you used did not come from my post. If you have no idea what I’ve sold, how could you indicate ‘it looks like you might have sold around $400’? I never indicated what my sales thus far have been. And I also noted in my example that the total sale was $80 INCLUDING SHIPPING, not $80 plus the $8.30.

And, yes, as noted elsewhere, I meant no income tax in Florida, not sales tax. My bad.

Anyway, the bottom line is that many people here have been gracious enough to provide exactly the information I needed. 

[s_and_p_interiors]

Yes

[s_and_p_interiors]

No STATE income tax, of course.

[dbfolks166mt]

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. 

Always a good idea to keep your own records. Don't forget to also record any refunds and returns. You can also pull a high level or a detailed report from eBay that covers a given time period. Note that your records and what you see on the 1099 may differ slightly depending on what form of accounting you utilize when you do your taxes.