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 ?? 

[usmsupplyco]

Well, thank you I know my tax situation & know how to do my own taxes , There was a big mistake from eBay in the 1099K . That's why I freaked out.

eBay sent me 1099K with all inclusive taxes & fees. That's why no one could figure that out .  

[usmsupplyco]

Well, my 1099K total amount equal to Total Sales .  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 ? 

[usmsupplyco]

I appreciate your reply. I do know for sure eBay mistakenly sent me 1099K for Total Sales which includes sales tax, fees and shipping as shown in Performance Sales Report .

Example : If my total sales was $58.000 ,  $4.000  tax and   $16.000  eBay fees and shipping costs which is about 28% , my net sales would be $38.000 .  Which number should be on my 1099K  ? 

$58.000  totals or  $38.000  net sales  ? 

my 1099K shows  $58.000  let me know if this is correct ?   Thank you in advance 

[usmsupplyco]

Thank you for your reply.

Example : If my total sales was $58.000 ,  $4.000  tax and   $16.000  eBay fees and shipping costs which is about 28% , my net sales would be $38.000 .  Which number should be on my 1099K  ? 

$58.000  totals or  $38.000  net sales  ? 

my 1099K shows  $58.000  let me know if this is correct ?  

Thank you 

[nobody*s_perfect · Accepted solution]

Yes, $58K is correct.  

The $16K in fees and postage are deductible expenses which you enter on your Schedule C.

[kensgiftshop]

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@usmsupplyco wrote:

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 ? 

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A 1099K is only for total gross income, not fees, sales tax or shipping charges.

I didn't receive a 1099K.

I don't rely on Ebays reports, I keep track of my own stuff.

[buyselljack2016]

per your example I would expect $54,000 on the 1099

[usmsupplyco]

Hi again, I'm confused again :))   Everyone say your 1099K doesn't include tax, fees , shipping costs . why do I have to deduct tax or something which I never received  the funds for in the first place ?  

[usmsupplyco]

Thank you .  Then eBay made a mistake , I got total $58 K per the example . I can't even reach customer service since "Help" area doesn't have tax document topic . Their phone number is busy 24/7. I will just file the amount , minus tax .   Thanks again 

[usmsupplyco]

Thank you but others say it should be $54.000 per my example . ( Minus sales tax )  eBay shouldn't include tax which I didn't collect them. other fees and shipping costs I can deduct them on my schedule C . 

[slippinjimmy]

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@usmsupplyco wrote:

Thank you but others say it should be $54.000 per my example . ( Minus sales tax )  eBay shouldn't include tax which I didn't collect them. other fees and shipping costs I can deduct them on my schedule C . 

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They don't! You have been told over and over again what is included in your 1099-K, you keep ignoring this information provided here AND stated by eBay in the Help Pages.

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

[buyselljack2016]

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@usmsupplyco wrote:

Thank you .  Then eBay made a mistake , I got total $58 K per the example . I can't even reach customer service since "Help" area doesn't have tax document topic . Their phone number is busy 24/7. I will just file the amount , minus tax .   Thanks again 

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Do keep in mind that we do not know "exactly" where you are getting the example $58,000 # from. eBay shows #'s in different places. Seller's Hub #'s are different from "reports" #'s .

[kenthouse]

I thought that the IRS repelled the law on sales under 20K not needing a 1099K!!

[ebooksdiva]

This thread is about taxes for 2022

[kh-vince]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.