eBay

hachumi · ‎08-11-2022

I started using the money I make to buy things here on Ebay instead of taking all of it in payouts. One of ebay's good Idea. Since I never see the money as a payout, would this still be considered income on my 1099 or not?

fern*wood · ‎08-11-2022

Yes, your payments received would still go on your 1099k even if you spend them before seeing them.

luckythewinner · ‎08-11-2022

@hachumi wrote:
I started using the money I make to buy things here on Ebay instead of taking all of it in payouts. One of ebay's good Idea. Since I never see the money as a payout, would this still be considered income on my 1099 or not?

Your 1099-K from Managed Payments reports the total amount of incoming money processed by Managed Payments.

Returns, refunds, and money you spend does not reduce the amount your 1099-K. The only thing not included is any sales tax that was collected from your buyers by eBay and remitted by them to the states.

natoman777 · ‎08-11-2022

Anything that you sell that meets the threshold ($600 total sales I believe???) will end up on a 1099

caldreamer · ‎08-11-2022

1099 is sent to you and IRS (gross sales must be shown on income tax form). 1099 shows gross income (purchase price + shipping costs). When you file as "business" you can deduct (EBAY fees, costs of goods, mileage, cost to ship items, packing materials, etc). You pay income taxes on "net amount" after all expenses are deducted.

Even though you spend your earnings on EBAY it is still counted as "income earned" and must be reported..

pburn · ‎08-11-2022

How can you say you never see the money as a payout if you're spending it for making purchases on eBay? Unless they're putting someone else's payouts into your wallet and you're using someone else's money for those purchases?