Quick Tax Question

[calntom]

Is the sales tax that eBay collects included on the 1099-K as Gross amount of payment (section 1a)

[7606dennis]

I believe that it is since the amount would be included in the total amount of the transaction.  The 1099k is a form required of payment processing entities.  Any payments going out such as sales tax remitted to the state would have to be recorded as an expense.  

[7606dennis]

I believe that it is since the amount would be included in the total amount of the transaction.  The 1099k is a form required of payment processing entities.  Any payments going out such as sales tax remitted to the state would have to be recorded as an expense.   Of course, consulting a tax professional i.e. a CPA would probably be wise.

[wastingtime101 · Accepted solution]

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@calntom wrote:

Is the sales tax that eBay collects included on the 1099-K as Gross amount of payment (section 1a)

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No. Only seller-collected sales tax is included. eBay-collected sales tax is not included.

Editing my post to include an eBay reference link:

What's included in form 1099-K

[kensgiftshop]

@calntom 

No, sales tax is not included on the 1099-K.

[powell-memorabilia]

sales tax is not included on the 1099‘s.  
It is not to be deducted as an expense.

[7606dennis]

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@kensgiftshop wrote:

@calntom 

No, sales tax is not included on the 1099-K.

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I stand corrected.

[calntom]

All you all rock.   Thank you!!!!