Sales Taxes Relative To $600 1099 IRS Reporting Threshold

[semi_midwestern]

Does anyone know if the state sales taxes that ebay collects on your sales are counted toward the $600 in total sales which triggers the 1099?

I know shipping costs are counted as "sales" but what about state sales taxes?

As sellers, we never even receive any of the state tax money because ebay collects it directly.

Like a lot of people, I am ceasing all sales when I get close to $600 because it simply isn't worth the grief

of doing a detailed accounting to establish taxable income and potentially triggering an audit. I sell stuff on ebay to clean out my closets and get rid of old stuff that I don't use.  Because of the stupid law the democrats passed in 2021, even very casual sellers like me have to deal with this nonsense now.

They should go back to the $20K sales threshold that they had before to address people who actually have for-profit businesses selling on ebay and leave the rest of us alone. But, here we are.

[bryo_3145]

Meanwhile the rich, past presidents and corporations find a way around not to pay taxes at all. 

[lacemaker3]

@semi_midwestern 

Sales tax is not included on your 1099-K. The 1099-K includes all payments that were processed for you, into your eBay Managed Payments account. So that includes purchase price, plus shipping/handling cost, but not the sales tax because it doesn't go into your Managed Payments account.

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

If you are not running a business selling on eBay, then you don't need to do complicated book keeping to report your 1099-K income. If the items were sold at a loss, it is just two lines to fill out. Tax software can handle this easily. Here are the instructions from the IRS for reporting 1099-K income for personal sales:

https://www.irs.gov/businesses/understanding-your-form-1099-k#do

[semi_midwestern]

Thanks for the reply, it was helpful.

Why ebay doesn't post something like this is anyone's guess.  They don't even post your calendar year

sales so can see your 2023 sales total. I had to go through my emails to piece together what my calendar year sales are to date. What a mess. 

[semi_midwestern]

Not at all helpful. 

[luckythewinner]

Does anyone know if the state sales taxes that ebay collects on your sales are counted toward the $600 in total sales which triggers the 1099?

No they are not. eBay's help page for the 1099-K states this clearly.

"Additionally, Form 1099-K does not include the sales tax when it is automatically collected and remitted by eBay"

I know shipping costs are counted as "sales" but what about state sales taxes?

The 1099-K does not report "sales". It reports payments processed on your behalf by the Managed Payments system. 

Like a lot of people, I am ceasing all sales when I get close to $600 because it simply isn't worth the grief

of doing a detailed accounting to establish taxable income and potentially triggering an audit.

Even if you do not reach $600 and get a 1099-K, you are still required to report income on your tax form. 

[buyselljack2016]

@semi_midwestern 

seller hub will show your sales for the year. it is a dropdown choice

Sellers hub>

Hover on performance>

Click on sales>

Click on last 31 days>

select time frame from the choices.

[semi_midwestern]

I could only find the last six months of sales under "Account. "

I'll look in "seller hub" assuming I can find it, thanks.

Where is it?  Not seeing a "seller hub". 

The closest thing seems to be "all activity" under "Account / Payments".

And I even then I still have to manually tally up my calendar year sales. 

I'm around $500 so I'm done for the year, I guess. 

[semi_midwestern]

What income??? 😃

[buyselljack2016]

this may get you there

Overview - eBay Seller Hub

after you click on the desired time frame you will then need to scoot over to the right to hit "generate report"

There will total sales including sales tax, and also a breakdown of expenses on the page.

ETA  if you then no longer want to use the "seller hub"(some don't like change) page there is an "opt out" up to the right.

[monica-sells]

no need to be done...that's just silly...

(just re-read @lacemaker3 post)

anyways, here is the report you seek

(just set the date for year 2023)

https://www.ebay.com/sh/fin/reportslanding

[buyselljack2016]

income  & loss..................... whichever applies 😂

[lux.ra_14]

---

@semi_midwestern wrote:

Stupid reply and not at all helpful. 

---

Political commentary is verboten.

But you injected it into this thread and earned the rejoinder.

[buyselljack2016]

thanks for posting that. I forget about that page, and come April 15 it will have again escaped from my knowledge bank😂

[semi_midwestern]

I just stated a fact.