2022 Tax form 1099K

[usmsupplyco]

I got a 1099K from which include "Total Sales"  with all state/ sales tax collected by eBay, refunds  / returns and eBay seller fees plus the ad fees on 1099K .  How  I can deduct those on my return >???????  I can understand that we can deduct shipping and materials . 

Please don't tell me ask your tax advisor . Most of them are stupid,  they all said , ohh well somehow we have to figure out how to get credit for  $11871.00 sales tax and or state tax but it's going to cost you near $2500   what ???  Still they have any straight answer.   I don't know if I can report "Net Sales"  which are after 28.6 % total deduction from my "Total Sales" By the way, if you have too much of the deductions ( which are all true ) we might get audited . What a hassle. !!

Anyone got a better idea ?? 

[monica-sells]

I can't guide you, but I can tell you SALES TAX or VAT Tax is NOT included on your 1099-K

and....

been doing my own taxes for years (Schedule C, etc...)

It is not that hard and it saves me $$$$$$ in taxes

take a breath and look through some posts here, as well as the irs site...spend 80 bucks on a tax software program if you really want to get ambitious....

[tealt]

The 1099K you received does not include states' sales tax collected by eBay. 

If I might make two suggestions:

1)  Download/read about IRS Schedule C and information on how to use it.

2) If possible, purchase TurboTax Home & Business software (last year it cost about $130) to run on your desktop/laptop.   That software will walk you through all possible deductions.

[luckythewinner]

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@usmsupplyco wrote:

I got a 1099K from which include "Total Sales"  with all state/ sales tax collected by eBay, refunds  / returns and eBay seller fees plus the ad fees on 1099K .  How  can I deduct those crap on my return >???????  I can understand that we can deduct shipping and materials . 

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No need for expletives.

1) You do not deduct sales tax collected by eBay, because you are mistaken - it is not included on the 1099-K.

2) You deduct refunds and returns on the Schedule C line titled "returns and allowances".

3) eBay seller fees and ad fees are deducted on the Schedule C line titled "commissions and fees". 

[heckofagame]

The 1099 K does not include amounts for refunds or returns.

[monica-sells]

For clarification sakes only.......

"...The 1099 K does not include amounts for refunds or returns..."

The 1099-K 'includes all monies processed on your behalf'

IF you sold an item for $10.00 and refunded $10.00, THAT $10.00 (initial sale) IS included on the 1099-K total....

it is your responsibility to "deduct it" from the total on your tax form to realize a net income of "0.00" on that transaction.....

[giftr7]

What is the main issue have you explore it. Why it is return on wrong address either you have wrong address on ebay or something else. But for now the best option is to take the tracking number from your client and track it. May be it is somewhere near to you.

[rosszonebricks]

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@heckofagame wrote:

The 1099 K does not include amounts for refunds or returns.

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Incorrect.  The 1099k includes the payments processed, which may include any amounts you later refunded for returns or other reasons, so you WILL need to tally up refunds and include them as a deduction in your taxes.

Source: https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions-reporting

Q. Do payment settlement entities adjust the gross amount to account for fees, refunds, chargebacks or other costs and refunded amounts? (added October 21, 2022)

A. No. The gross amount is the total unadjusted dollar amount of the payment transactions for a participating payee. It is not adjusted to account for any fees, refunds, or any other amounts.

[gloryglorygifts]

My advice, for what it's worth, write everything down for your accountant, like seriously spell it all out for them so all they have to do is plug in the numbers on Schedule C. Last year, I printed out a schedule C and filled it in for the guy. I just gave him the 1099, etc to back it up. The more paper you give them to wade through the higher the cost. If you can simplify it for them they may give you a break. My guy only charged me $125 last year and that was for state, local, federal and included all the business stuff. If you are using an accountant try that otherwise do it yourself! 

[monroe67]

"Please don't tell me ask your tax advisor . Most of them are stupid . . . . .  "

Wow.  You don't know what to do about your own tax situation and you think most people who truly might be able to help you are -- what is it again? -- "stupid" ? 
All Righty Then.    

[usmsupplyco]

Thank you for the answer. YES indeed all taxes and eBay fees, shipping costs are included in 1099K . go to Performance, then hit Sales , then select Last Year . You will see total sales are the number is on your 1099K , not the "Net Sales"   I been using TurboTax for years , I can do all the deductions easily , and all deductions has record but I hate to get audited 

[kensgiftshop]

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@usmsupplyco wrote:

Thank you for the answer. YES indeed all taxes and eBay fees, shipping costs are included in 1099K . go to Performance, then hit Sales , then select Last Year . You will see total sales are the number is on your 1099K , not the "Net Sales"   I been using TurboTax for years , I can do all the deductions easily , and all deductions has record but I hate to get audited 

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Their fee's are not your income, so why would they be on a 1099K?

The only thing on there is the money received from buyers, minus any sales tax.

Your fee's and shipping charges, you deduct them when you file your taxes, just like last year.

[usmsupplyco]

Thank you for your reply .  Not sure if eBay mistaken and the 1099K needs to get corrected. My 1099K has total gross sales which = to my total sales amount before taxes , fees & shipping costs. it does have monthly sales too , all matches Total Sales, not my net sales . it's strange . even last year is the same , all included in my 1099K . I need to contact eBay to correct it 

[nobody*s_perfect]

eBay is not mistaken.  The total on your 1099-K is ll the funds that eBay processed for you, including everything that buyers paid for the item price and shipping and handling. It does not include funds that eBay collected for sales tax.  And it does not deduct any expenses such as postage, refunds or eBay fees.  Here's the basic Help page about it:

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

[usmsupplyco]

Most definitely eBay made mistake for two years in the raw . They included Total Sales with tax, fees, shipping costs, plus every month sales which all matches the Performance Sales Report . Did you check your last year total sales & net sales in the eBay performance report for last year >>??  does your 1099K matches net or total sales ?