eBay

lovesickass · ‎07-09-2022

I'm trying to keep my sales under the $600 mark. My question is: From January 1 until now it shows my sales as

Total sales: 596.21

Item sales: 555.50

Taxes and government fees: 40.71

So do I go by total sales or item sales for my 600 limit?

Thanks.

dnasilver · ‎07-09-2022

What limit? You still claim 599.99 in sales even if you do not get a 1099. Any money you make is potentially taxable income. The 600 limit you mention is the limit to trigger a 1099 and does not determine if your income is taxable.

rfmtm · ‎07-09-2022

The $600., is the total gross funds received and processed for your account. This includes even funds that were later refunded as well as shipping, etc. The only thing it does not include is sales tax, since that it taken care of by ebay.

Remember all income is reportable, but that doesn't mean you owe any tax, so don't worry about the $600. threshold.

luckythewinner · ‎07-09-2022

@lovesickass wrote:
I'm trying to keep my sales under the $600 mark. My question is: From January 1 until now it shows my sales as

Total sales: 596.21
Item sales: 555.50
Taxes and government fees: 40.71

So do I go by total sales or item sales for my 600 limit?
Thanks.

You need to determine the total amount of payments processed by eBay, and subtract the sales tax that was collected by eBay to arrive at the 1099-K number.

But be aware that the 1099-K goes by the settlement date, not the payment date, so transactions in late Dec 2021 may count toward your 1099-K for 2022.

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

"As Form 1099-K is an IRS information return, it includes the gross amount of all reportable payment transactions within a calendar year, based on when funds settle to eBay, not necessarily when funds are received by sellers. This amount does not include any adjustments, for example, credits, discounts, fees, refunds, or any other adjustable amounts. "

albertabrightalberta · ‎07-09-2022

@lovesickass wrote:
I'm trying to keep my sales under the $600 mark. My question is: From January 1 until now it shows my sales as

Total sales: 596.21
Item sales: 555.50
Taxes and government fees: 40.71

So do I go by total sales or item sales for my 600 limit?
Thanks.

EVERY cent you take in from your sales needs to be claimed. If you sell one item for $75, you need to claim it. Just because you may not get a 1099K form doesn't mean it doesn't have to be claimed.

albertabrightalberta
Volunteer Community Mentor