eBay Taxes

[sales_market_place]

I have a question,

Ebay requests me to enter tax information because it says my funds are above 600$ But I have sold only 1 I team that is $100. Before someone bid on another item of my which was 700$ but after biding was over they never payed. So what can I do to update my funds down to $100 dollars. Do I contact eBay so I don’t have to enter tax info?

[mtgraves7984]

@sales_market_place 

eBay still sees that as income, and will include it on your 1099 to the Feds. You'll have to deduct the refund on Schedule C.

[albertabrightalberta]

ALL sales are supposed to be reported! It's only at $600 that a 1099K kicks in. You're supposed to claim everything, whether it reaches the $600 threshhold or not. You can deduct your expenses and may not owe taxes but again, it must be reported.

[onefootflipper]

You apparently sold 3 tables in the past 24 hours you are going to be going over $600 for sure at that rate.

Also, you can't be clearing more than $6 drop shipping that from the current special on Amazon, if even one person has a problem with their item then you are going to be losing money quick either on complete refunds or paying to have that 12 pound table shipped back to your house.

[soh.maryl · Accepted solution]

Exactly what action did you take when that buyer didn't pay?  

[titipeo]

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@soh.maryl wrote:

Exactly what action did you take when that buyer didn't pay?  

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And, since buyer didn't pay, did you offer the 2nd highest bidder opportunity to purchase, in case you didn't know you can do that, but yes, you can. 

[luckythewinner]

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@sales_market_place wrote:

I have a question,

Ebay requests me to enter tax information because it says my funds are above 600$ But I have sold only 1 I team that is $100. Before someone bid on another item of my which was 700$ but after biding was over they never payed. So what can I do to update my funds down to $100 dollars. Do I contact eBay so I don’t have to enter tax info?

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eBay does not wait until you get to $600 before asking for your tax info. 

What would happen if you got to $600 and refused to give that information to eBay? 

eBay would technically be in violation of the law. 

[sales_market_place]

My apologies, it wasn’t a biding 

[soh.maryl]

AGAIN, exactly what action did you take when that buyer did not pay?  

[titipeo]

You've been with eBay for about 5 years, albeit somewhat minimal activity. Bottom line, if you want participate on eBay, you must provide the information requested. Other sites will be the same. It is not an eBay requirement, but rather out governments requirement in terms of accountability of income through other means and companies need to oblige.