Income Tax Question

[calntom]

Need a refresher.

Is the Tax Collected By Partner included in the Gross or Net? Do I need to do anyhing with it? 

[stainlessenginecovers · Accepted solution]

Sales Tax (or whatever you want to call it) collected by ebay are NOT in your gross (1099 reported). 

[eleanor*rigby]

In case you want to bookmark the eBay help page on the issuance of 1099-K forms.

Form 1099-K 

[calntom]

@eleanor*rigby @stainlessenginecovers 

I take it that ebay did not provide 1099k unless there was over 20k in sales.

True?

They switched me to managed payments in August and I did not hit 20k with PayPal either so no 1099 from paypal 

I am of course filing for every transaction.  

[nobody*s_perfect]

eBay has only generated 1099-K's for sellers who went over the federal threshold OR the threshold for the state where the seller lives.  The federal threshold is $20K through 2021.  For 2022, it's $600, which is already the threshold in several states.  

eBay and PayPal don't share information about how much you sold; each of them evaluates your sales income separately. So a seller could get 1099-K's from both of them, either one of them, or neither.

[eleanor*rigby]

Thanks for the tag, but I see I wasn't quick enough. Your question directed to me has already had a response.