Why put a message like "you don't have a form 1099K for 2023" and then all of a sudden on the 31st post the 1099K.
Have to agree on this one they could have simply stated the 1099 is not available yet then once they were issued remove the message. After 1/31 if you were supposed to get one and none was issued then you can contact eBay or the IRS.
I've been calculating my gain/loss over the last few days based on earnings (payout), and now I see they're reporting gross figures. This means I have to abandon all the work I've done and recalculate everything based on gross. Of course eBay hasn't provided ANY guidance regarding how they calculate the figures they're reporting to the IRS.
EBay doesn't set that "guidance" it is covered under the IRS tax laws but eBay does provide that information in the following help file.
https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794
So I have to go into a very detailed transaction report and try to "reverse engineer" how they did it. I thought eBay was a billion dollar multi-national corporation? They're acting like a start-up with incompetents putting confusing and incorrect information out on their site.
The information is not inaccurate but if you believe the figures are incorrect you need to contact eBay to get the 1099 corrected. You don't need to reverse engineer anything but you may need to go into the reports to pull your deductions related to eBay selling expenses. These would include any fees, shipping labels if you purchased them through eBay, refunds.
I thought the purpose of a 1099 is to report INCOME. That's what ALL of my other 1099's report. In the Help section, eBay shows a "tax tip" comment box that says what you report to the IRS may be different than the gross amounts eBay reports...WHAT!?!? What weird world are they living in? So confused and frustrated with something that should be straightforward.
The 1099 does not show "income" what is reflects is the gross amount of the financial transactions handled by the third part financial processor. To translate the statement "what you report to the IRS may be different than the gross amounts eBay reports" would only be applicable if you utilize a different account method for your personal records, which you declare on your schedule C, and what eBay reports based on their accounting methods for the 1099. Variances can occur especially with transactions that happen during the last coupe of weeks of the calendar year.
If you have never done a schedule C before the gross amount on the 1099 is what you start with. You then deduct ALL the selling costs: eBay fees, returns, shipping costs, COGS, packing materials, mileage, office space.................. to get to your bottom line net pre-tax income. This is what you pay Federal, SE and State taxes on. The following IRS publication may help you.
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf
