Simple Question (Ebay doesn't make clear)

[lorringuett-0]

Does Ebay include the amount given for shipping as part of the $600. limit you can sell before they take your social security number?  If so, why?  It's bad enough that they take a % from what is paid by the buyer for shipping.

[dhbookds]

Yes..........1099 is the amount you receive which includes shipping. Actual shipping cost can then be deducted as a cost on Schedule C.............. 

[heckofagame]

If you are referring to the updated reporting requirement for the 1099K, yes.

[mtgraves7984]

Don't they already have your SSN?

[heckofagame]

If you are in managed payments, which you should be, they will already have your SSN or EIN.

[1tuna]

what difference does it really make

the money is paid and it includes the shipping fees

if you are trying to just come in under the 600 threshold its sort of risky/not that simple

its easier to just sell what you feel like and pay the taxes

[dq3141]

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@lorringuett-0 wrote:

Does Ebay include the amount given for shipping as part of the $600. limit you can sell before they take your social security number?  If so, why?  It's bad enough that they take a % from what is paid by the buyer for shipping.

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The buyer pays the shipping charge to you, same as they pay the item price to you.

That's why.

[soh.maryl]

You do realize that this is a Federal (IRS) rule, not just some little whim of eBay's, right? 

[jayjaspersgarage]

"Does Ebay include the amount given for shipping as part of the $600. limit you can sell before they take your social security number?  If so, why?  It's bad enough that they take a % from what is paid by the buyer for shipping."

Just include your on-line sales with your income taxes the same as the past five years you have been selling and everything will be ok.

You have 590 selling feedbacks which pretty much says you need to get your records straight once the audits start reaching back three to seven years.

And why do so many people expect ebay to make the tax laws clear?  Call the IRS and explain to them how long you have been selling on-line and they will make everything perfectly clear.

[stainlessenginecovers]

The reason why is:

Some sellers do 'free shipping' so even though they charge $50 for that 'thingy'; the $50 is the amount reported.

Some sellers charge a 'handling fee' on top of the calculated shipping to cover materials and/or labor to pack & print a label; so that is part of the 'selling price'

Example: charge $40 for a thingy and $10 shipping even though shipping might only cost $6, so of that $10; $6 is a write off and $4 is 'profit' and therefore I need to claim $50 for the sale and then start 'deductions/write offs' from there. 

[chapeau-noir]

IRS Small Business/Self-Employed Tax Center

Also, for a simple small business (sole prop) there's no real need to spend a lot of money figuring taxes - there are any number of guides online.