TAXES

[captxray]

my question is what total FIGURE will be used to determine tax responsibility ? ITEM SALES or TOTAL SALES?

[ebooksdiva]

Your total gross sales.

[captxray]

i dont see gross sales Only Item sales and totals sales

[reallynicestamps]

Neither.

You pay taxes on the basis of your gross sales MINUS all your business expenses like eBay fees, procurement costs, packing supplies, insurance, office supplies, etc.

The IRS form is based on your Gross Sales which includes shipping and sales taxes because that is what eBay has easily on hand.

[captxray]

where do I see gross sales?

[captxray]

yes gross sales But where is that figure?Ebay doesent list GROSS SALES

[stephenmorgan]

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@captxray wrote:

my question is what total FIGURE will be used to determine tax responsibility ? ITEM SALES or TOTAL SALES?

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Tax responsibility is based on your gain.  It is not as simple as ITEM SALES or TOTAL SALES.  There are a lot of factors that go into determining if you have a gain or if you will have a tax obligation.  Unless the law is changed or waivered again, if $600 goes thru your account eBay is required to issue you a 1099 for 2024.

[slippinjimmy]

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@reallynicestamps wrote:

The IRS form is based on your Gross Sales which includes shipping and sales taxes because that is what eBay has easily on hand.

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If you are talking about a 1099-K, it DOES NOT include Sales Tax collected by eBay.

[caldreamer · Accepted solution]

IRS requires that you report the "gross sales" (purchase price + shipping).    You do NOT include sales tax before that money did not go to you.

EBAY has "read to easy" 1-page report that shows YTD totals for (sales, EBAY fees, returns, shipping expense).  Go to PAYMENTS, REPORT (select LAST MONTH or YEAR).   EBAY does all the work for you so it is easy when you file your income taxes.

If you file taxes as "a business" you can deduct expenses (cost of goods, mileage, packing supplies, EBAY fees, postage costs).   

[mam98031]

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@captxray wrote:

my question is what total FIGURE will be used to determine tax responsibility ? ITEM SALES or TOTAL SALES?

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You can take your total sales [product and shipping charged the buyer] as your Gross Sales.  Then subtract your costs, like carrier costs, Ebay fees, refunds to buyer, cost of product, shipping supplies, etc.  Then you arrive at your Net Taxable Income.  The Schedule C is a good way to walk you through all this.

Reports in Ebay may help.  You find them in the Seller Hub.

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

[mam98031]

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@captxray wrote:

i dont see gross sales Only Item sales and totals sales

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You issue may be you are looking for Ebay to use the exact words you want them to use.

Your Gross Sales = Total Product sales and Total shipping charged to buyers.