Confused in TurboTax where to put Ebay Sales - Self Emp section or

[shopndeals4home]

Rather than pay for assistance talking to Turbo Tax, I am wondering if anyone knows the answer to this question. So I'm  reporting my Ebay Sales using Turbo Tax, but confused as to where to report it??  In one place I read  someone said to it  put it under the "less common income"  and under  "1099-MISC" and someone else said do it under the "Self-Employment" section. The problem is, the self-employment section doesn't really give any form, It just asks you the description and give you a place to type in a dollar amount, but that's it! It's very vague on instructions, but I"m worried that if I put it in the 1099-MISC that it will be taxed incorrectly and not as self-employment income?   If anyone else is familiar with exactly where to  put the sales etc  in turbo-tax, I'd really appreciate it ....Thanks

[dbfolks166mt]

      Not that familiar with TurboTax but you should be able to google it and find an answer. Kind of put this off till the last minute? 🙂 

[shopndeals4home]

well, if I can't find an answer, I'll just do an extension on my taxes no big deal.....But I did try Google and the  information I found contradicts each other. One place said to do it under Misc Income and another place says to do it under "Self-Employment Income"... I guess I'll just do the tax deadline extension, then I'll have until October anyway...

[caldreamer]

If you sell and buy articles on eBay in order to earn money, the IRS will likely classify your sales activities as a business. This means you will have to report net income from eBay sales. Report your total gross income on Schedule C, then reduce it to net income by subtracting the amounts you spent for allowable business-related expenses.

[katzrul15]

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@caldreamer wrote:

If you sell and buy articles on eBay in order to earn money, the IRS will likely classify your sales activities as a business. This means you will have to report net income from eBay sales. Report your total gross income on Schedule C, then reduce it to net income by subtracting the amounts you spent for allowable business-related expenses.

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@shopndeals4home 

^^^^^^This is the answer.  Good luck.  

[yuzuha]

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@caldreamer wrote:

If you sell and buy articles on eBay in order to earn money, the IRS will likely classify your sales activities as a business. This means you will have to report net income from eBay sales. Report your total gross income on Schedule C, then reduce it to net income by subtracting the amounts you spent for allowable business-related expenses.

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Yep, and if you have Turbo Tax it will walk you through the entire thing. Very simple.

[shopndeals4home]

Thanks everyone I think I found it.... Since I'm just selling mostly collectible coins and I don't have the actual value since they are inherited, ,  I'm deducting like 50% off of the gross sales as it's just my best guess at Fair Market Value and even then I'm getting screwed, because I know I didn't make 50% profit on every item, probably more like 25%, not to mention I provided Free Shipping, so IRS is getting a good deal, but it's just way too much hassle to try and go through every transaction just to save $100.00 or $200.00 etc... I'll know next year....(also I didn't receive a 1099k) since that doesn't go in effect until next year. 

[lepke1979]

I'm not in front of TurboTax right now. And I assume you have the business version since you said it had a section for it. This also assumes we see the same thing in c you're doing this via the website 

I'll be able to walk through it better harry if your still need it. But there should be an area for business to enter general income.

An area below that you should be able to inventory information... Amount you had at beginning and end of last year and then follow up with what you purchased. With that it will figure it COGS for you. Since you haven't done this before, can outright get away with just saying $0 for beginning of year.

Below inventory is where you can enter vehicle info if you want to deduct mileage. Below that is your expenses (advertising, eBay fees, shipping labels, shipping supplies, etc.). And finally below that is home office is you want to deduct that.

If you like, I can reply with screenshots later.

[shopndeals4home]

Thanks Lepke,  but I'm just putting the amount without expenses listed. I mean, I honestly don't know how much shipping total was charged and my profit margin on all items was fairly small. I'll get screwed doing this,plus Turbo-Tax wants me to upgrade to the Self-Employment Version to list any expenses(which is about another $125.00), so I'm better off just listing the amount without deductions.........It's okay though, I learned my lesson for next year. I'll probably just have H&R Block do them next year....

[lepke1979]

What version do you have? I use Home and Business which is ~$65. I think you can even do business/1099 stuff in the version prior too.

Maybe not Deluxe, but the version between (is there is one, been a bit since I looked at the chart).

[shopndeals4home]

I use Turbo Tax Premiere(the online version).  I'm not sure if that makes a difference....I will keep that in mind for next year though, appreciate it..................

[iart]

I hope you applied for an extension.

Taxes were do a couple days ago.

[katzrul15]

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@iart wrote:

I hope you applied for an extension.

Taxes were do a couple days ago.

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Taxes are due tomorrow, 4/18 before Midnight

[vannvo_0 · Accepted solution]

Definitely self-employment.

It's what I use, the tax form that Ebay sends out is a 1099-K

You'll need to use Schedule C to report that.

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-1099-k-in-turbotax-online...

[shopndeals4home]

Thanks Van, but yea I did the Self-Employment, I know I chose the correct  one since Turbo-Tax applied the self-employment 15% tax. I'm not charged any income tax on the ebay sales since I didn't work in 2021, and any money I did earn was well below the standard deduction of $12,400 or whatever it is...But I'm still having to pay the 15% self-employment tax, which I knew I would......