What all numbers must match the 1099

[betterpricestore]

Hi

I tried to match total income of ebay 1099 by calculate the sold price (without Sales tax) + shipping to match with my 1099 reported total income. But i am missing  -1800 after calculation. Did i miss anything. Your input will be very helpful 

[monica-sells]

Just a few of the more obvious possibilities.....

the 1099k is the total funds processed on your behalf....

so...it includes the item price...the shipping costs you charged the buyer (not what you paid which may be a different amount than what the listing was)

It also includes all sales whether they were refunded/returned/credited, cancelled after a payment, etc (which you need to deduct from that total)....

there is also a date thing when the actual funds were recorded (Dec 30-31, jan 1 etc...) around the end of the year

[dbfolks166mt]

     I am assuming you are trying to "match" your book keeping records with the reported 1099 gross income? monica-sells already mentioned a few possibilities the biggest one maybe the "date thing" which I will elaborate on a bit more. Generally tax filers use one of two types of accounting, accrual or cash, which they declare on their schedule C when the file. I use accrual for it's simplicity since you record expenses and revenues at the time they occur irrespective of the cash flows. 

     This can create disparities during the last month and first month of the calendar year since eBay appears to use cash accounting when calculating the income for the 1099. Cash accounting recognizes revenue and expenses when the cash transaction actually occurs. 

     As an example if I sold a $500 item on eBay on 28 December 2022 I would record that revenue on my books as 2022 revenue. However, if eBay, or the financial processor, did not process the funds and they did not get deposited into my bank account until 5 January 2023 under the provisions of cash accounting eBay would not recognize that revenue until 2023 and it would no be included on your 2022 1099. 

     You may have to pull the detailed line item report for 2022 and go through it by line item paying special attention to the January and December items to see what actually wound up in your 1099. I am not sure what happens and how eBay reports the revenue in instances where they have held funds for an extended period of time. This may further impact what is included in the 1099. 

[caldreamer]

EBAY has new "easy to read" 1-page report that show YTD totals for (orders/gross sales, refunds, EBAY fees, shipping expense).   Go to Payments, Reports, REPORTS (NEW) and click on LAST YEAR.

GROSS SALES (amount shown on 1099)

-Refunds

-EBAY Fees

-Shipping Expense

- Other Expenses (mileage, cost of goods, packing materials, office supplies)

= NET SALES (taxable amount)

[mam98031]

1099K's report Gross Receipts, they do NOT report your total sales.  Gross Receipts are the total amount of money that came into your MP account BEFORE any deductions for fees paid to ebay, shipping, cancellations and/or refunds for any reason for any amount.  So you need to deduct all that to arrive at the figure you are looking for.

[mam98031]

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@caldreamer wrote:

EBAY has new "easy to read" 1-page report that show YTD totals for (orders/gross sales, refunds, EBAY fees, shipping expense).   Go to Payments, Reports, REPORTS (NEW) and click on LAST YEAR.

GROSS SALES (amount shown on 1099)

-Refunds

-EBAY Fees

-Shipping Expense

- Other Expenses (mileage, cost of goods, packing materials, office supplies)

= NET SALES (taxable amount)

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@caldreamer 

Excellent suggestion.  A very simple report that is extremely helpful.

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