new rules for 1099k for 2022: what's on the form?

[hooksandstuff]

More questions about the new $600 reporting rule, sorry:

I consider myself a casual seller now, meaning I don't buy items to sell here, nor do I have a storefront, nor do I sell brand new items. Mostly it's just used household items I no longer need, or vintage iems given to me. The question of how to know my cost basis on such things seems fairly complicated and I have not yet found an answer to that and will keep researching. But at least I know eBay fees and shipping I paid should not be taxable income.

SO: assuming I get a 1099K form for the 2022 year, what will it show? Will it be the amount that was sent to my bank account in managed payments? Or will it be the full amount of the auction including fees and shipping?  

If the fees etc ARE included, is there on the seller hub an accounting of the annual amount I did spend on fees and shipping, so at least I can deduct these from my taxable income? 

Or will I have to be keeping track of the details of each transaction for myself, or figure it out monthly? 

The getting of a 1099k is not the sticking point for me, it's the paperwork and accounting for selling used items that is concerning. Whether or not people in my position should have to report this income is for a different debate. Right now,  I at least want a reasonable way to figure my expenses at the end of the month or year, so I am not working my keister off for something that is a not worth that. 

Can anyone shed light on this for me?

[nobody*s_perfect]

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@hooksandstuff wrote: ... assuming I get a 1099K form for the 2022 year, what will it show? Will it be the amount that was sent to my bank account in managed payments? Or will it be the full amount of the auction including fees and shipping?  ...

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The full amount.

 https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

[dhbookds]

the 1099 shows a total each month of what you were paid by buyers on Ebay.......with the exception of the sales tax. 

It shows no deductions, ebay fees or any other costs.......  those are up to you to compile and then deduct on Schedule C at the end of the year.

[monica-sells · Accepted solution]

Will it be the amount that was sent to my bank account in managed payments?

No

Or will it be the full amount of the auction including fees and shipping?

YES (Less Sales Tax)

If the fees etc ARE included, is there on the seller hub an accounting of the annual amount I did spend on fees and shipping, so at least I can deduct these from my taxable income?

YES ...A multitude of reports in Seller Hub

Or will I have to be keeping track of the details of each transaction for myself, or figure it out monthly?

To make it easier and more accurate, monthly reconciliation is a great idea

Side Note: It sounds like a lot of work, but it really is simple

[caldreamer]

1099 sent to you and the IRS.    1099 shows gross sales (purchase price + shipping income).   You report gross amount to IRS.

All income must be reported even if you consider "a hobby".   If hobby you will probably get stuck paying taxes on the full amount.   If you file as a business you can claim deductions (EBAY fees, cost of goods, mileage, shipping costs, packing materials).

[dbfolks166mt]

1099 sent to you and the IRS.    1099 shows gross sales (purchase price + shipping income).   You report gross amount to IRS.

EBay reports the gross the seller reports and pays taxes on the net. 

[oddz_n_endz]

Updated, and in the everyday seller's favor:  https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-t...

[kh-vince]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.