eBay

erictipton · ‎04-06-2022

Hello all,

I'm struggling to finish my taxes and I'm wondering if someone could give me a quick hand. I have used GoDaddy bookkeeping for years, and since Ebay switched to their new payment system it has completely screwed me up. To be honest, I should have been categorizing each transaction through out the year but of course I waited til right before the taxes are due (stupid, I know).

I got three 1099k's, one from my main ebay account name, another from a second ebay account name I barely use, and the third was my Paypal 1099k. Now, I'm supposed to add up all three "1a. Gross amount of payment card/third party network transactions" to find my total gross sales that are reported to the IRS, right?

Right now, my gross sales on Godaddy bookkeeping is about 30k off from the total of all three 1099k's gross combined ($115,813)... and I just can't figure out why or what I did?

If I add up all the received payments from ebay listed on by Godaddy bookkeeping for a single month, such as July, when I had no paypal payments at all, my numbers still don't match... For instance, I add up the month of July's ebay EDI payments received (9 transactions/payments) on my Godaddy bookkeeping and it comes to $1346.75. I did not have any payments or sales on my secondary ebay account or thru paypal that month. Then when I look at my ebay 1099k the total for July says $2412.88. . . That's a difference of $1066.13 !! What am I missing here??

Does it have something to do with the taxes, fees, etc. that I am just not taking into account? Since EDI payments already have the fees taken out, how come I'm not seeing any transactions of the full amount that I can just easily categorize? I'm guessing those days are over? I have a separate ebay and paypal fees category which seems way off as well!

Should I just write in the total gross sales of all three 1099k's, and keep the rest of my expenses the same? If that's the case, I will definitely have to adjust my ebay/paypal fees expenses because right now I have $5755 for ebay fees, and $907 for paypal fees with a combined gross sales of $115,813....so that has to be WAY off...right?

If anyone can just give me a few pointers or send me in the right direction I would TRULY appreciate it.

Regards,

Eric

dhbookds · ‎04-06-2022

about 30k off from the total

up or down off? Are you sure all accounts were in MP the whole year? Could there have been some income in PP?

heckofagame · ‎04-06-2022

I don't know if this will help, but the 1099k does not include any amounts for taxes or any returns/refunds.

duffy4444 · ‎04-06-2022

I also use GoDaddy Bookkeeping, and have seen no errors... I think you MIGHT have messed up with your GoDaddy categories - i.e. business vs personal categories, deductible business expenses vs non-deductible personal expenses.

The above may not apply to you, but all I can say is my GoDaddy Bookkeeping was right on the mark, and when I hand the yearly GoDaddy P&L report over to my tax person, she has no problems with it and how it is laid out... even with eBay's Managed Payments, which has had nothing to do with sales and expenses at GoDaddy.

Cheers, Duffy

monroe67 · ‎04-06-2022

If I received a 1099K that was Thirty Thousand Dollars "off" from my own record keeping, I would consult a professional tax preparer. If I sold that much, I think I could afford to pay a CPA.

You can make an appointment at a local H&R Block office on their website. But midnight on April 15 is getting closer by the hour.

caldreamer · ‎04-06-2022

I use GoDaddy and had no problems with their numbers. Make sure that your Payouts are NOT categorized as revenue as that would be a duplication (these are just deposits to your bank).

Your gross sales would be combined of all three 1099's (that's what gets reported to IRS). Amount shown on 1099 includes (purchase price + shipping income). When you deduct your business expenses be sure to include "actual costs of printing shipping label" (because shipping is included in your gross amount shown on 1099).

erictipton · ‎04-07-2022

Thank you all very much, I truly appreciate every comment.

Glad to hear the problem is on my end (which is what I suspected), and not Godaddy bookkeeping or something else. My bookkeeping program was about 30k under my 1099's total. Duffy, I think you are right and I must have miscategorized some business vs non-business expenses somehow, but I'm still in the process of trying to find them. I bet I must have clicked the button to label multiple similar transactions in the same category and it was wrong to begin with. I'm fairly certain my bank and card was connected for the entire year, but I'll double check to make sure (thanks dhbooks).

I have to be missing the entire incoming payment of each sale somehow... and I was wrongfully using the incoming "Ebay EDI Payments" as my full revenue source which is incorrect because it's what I got after the fees and taxes (thanks Caldreamer).. I'll have to change all the Ebay EDI payments and find the entire incoming revenue. I'll continue to look around all my transactions to see how I miscategorized them.

Monroe, I do have an tax prep/accountant that looks over everything and helps me submit them, but I try to have most of it done before giving it to him. If I have to file an extension I will, but hopefully not.

Thanks again

Eric