Quick 1099k question

[diannescurations]

I apologize if this has been already addressed.

Does the 1099k reflect gross sales minus taxes collected by Ebay or gross sales minus taxes and selling fees as well? Thank you.

[inhawaii]

I asked this question myself the other day.

The amount on the 1099K is gross BEFORE deductions.

You still need to deduct cost of goods, fees, shipping paid, any other expenses.

[silverstatetreasureboxes]

@diannescurations 

Here dear,  I bookmarked this post because it explains it well.

https://community.ebay.com/t5/Selling/Net-for-taxes/m-p/32682326#M1936865

[inhawaii]

Also, this may help you.

Go to "selling" or your seller hub.

Then go to "Payments".

Then "Reports" from the drop down menu.

Then the "Statements" tab (middle tab).

From there you can look at your monthly statements to see what fees you paid and how much you paid for shipping labels each month.

I was only able to figure out how to get monthly figures.   

I think you can get the yearly figures but I couldn't figure out how.

I hope this helps.

[monica-sells]

Your Form 1099-K includes the gross amount of all reportable payment transactions and does not include any adjustments, for example, credits, discounts, fees, refunds, or any other adjustable amounts. This means that the gross amount reported on your Form 1099-K may not be the final reportable amount on your tax return.

Does the 1099k reflect gross sales minus taxes collected by Ebay...

the answer to this is yes

[diannescurations]

Thank you! I'm glad I asked.

[diannescurations]

Thank you!

[pburn]

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@diannescurations wrote:

Thank you!

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@diannescurations 

Just want it to be perfectly clear that the Form 1099-K does not include the sales tax figure for your transactions, since that money was never transferred into your account. The figure includes the price you received for the item + shipping, if paid by the buyer. You'll have to deduct the shipping cost, eBay fees, and any other expenses you incur in the business of selling--the list is endless--in order to get to your net (taxable) income.

[diannescurations]

Yes. Understood.

[chapeau-noir]

It helps to think of it as gross revenue, or gross receipts.