eBay

newdealpawn · ‎04-09-2022

A completed transaction in the collectibles category, today 04-08-2022.

Fees based on $210.64
Item price $194.49
Shipping and handling $3.99
Sales tax $12.16
Fees based on $210.64
Total fees for item Final Value Fee-$25.28
Variable percentage • Collectibles category
Rate for $0.00 - $2,500.00
$210.64×12.0% =-$25.28
International Fee-$3.48
Charged because the buyer’s registered address is in United Kingdom.

Final amount: $210.64.
$210.64×1.65% =-$3.48
Final Value Fee-$0.30
Per order fixed amount
Total fees-$29.06

THIRTY DOLLARS ON TWO HUNDRED good work if you can get it. A promoted listing NOT USED to make this sale and ACTUAL shipping cost not included either. The use of the promoted feature, and true shipping costs would add SUBSTASNTIALLY to the total seller cost , exampled above. UNDERSTAND THIS TO LADIES AND GENTS THE SALES TAX IS LANDING ON YOUR 1099K AS INCOME eBay inflating your incomes to the tune of anywhere from 5% to 11% if your items land in one of the workers paradises such as NY or CA perhaps a touch more.. Up to the individual pull those funds eBay has collected for the "benefit of the sellers and the States" my accountant looked at me like I was nuts. See in my state if you want to claim taxes paid you're gonna need some paperwork on that..If a seller ends up with tax problems due some this wacky accounting eBay is doing, Iam sure we can count on them to help get it cleared up with the revenue people.... Well a quick glance at the updates to the user agreement they have made recently tells me NOT TO COUNT ON IT.. FOR an effective rate of 15% on the gross I think we could expect MUCH BETTER SERVICE. The eBay leadership should have tax people available talk to sellers on this issue and the new regs on reporting. Using facebook as your contact medium for customer service?? REALLY 15 PERCENT and they want me talk about my tax return on facebook? That's a new course for post graduate work at California universities for an MBNA in business nowadays you see its called "How to slow growth and alienate your customer base 401". Perhaps going forward the 2 million plus seller exodus, and the 30% PERCENT A SHARE STOCK SLIDE, could of be mitigated if some the current leadership would do something different than what strategies are in place currently.. Raising fees to compensate for bad leadership decisions will only work for a limited time.. Any even the SMALLEST increase in seller cost from where it is now will make positions untenable on this site for MANY. Math never lies NEVER....

forward-motion · ‎04-10-2022

If for some strange reason the OP's did. Then just deduct it.

forward-motion · ‎04-10-2022

@dbfolks166mt I appreciate your advice, as you have helped me in the past. However, I'm thinking the sales tax must be included in the 1099. When I run a sales report for last year, I have a gross total of $26313.43 it says includes tax. Then my 1099 has a total of $27,928.79 I have no idea where this number comes from. However, when I add the $26,313.43 and the sales tax of $1,188.41 I get a total of $27,501.84.

I have an accountant working on it. But for me the numbers just don't add up.

dbfolks166mt · ‎04-10-2022

It may be possible that eBay messed up the 1099. Mine have never included the sales tax and according to eBay they should not.

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

What's included in Form 1099-K

As Form 1099-K is an IRS information return, it includes the gross amount of all reportable payment transactions within a calendar year, based on when funds settle to eBay, not necessarily when funds are received by sellers. This amount does not include any adjustments, for example, credits, discounts, fees, refunds, or any other adjustable amounts. This means that the gross amount on your Form 1099-K may not be the final reportable amount on your tax return. You should consult your tax advisor to determine how best to use the information on your Form 1099-K when filing your personal and/or business income tax return.

If there's an issue with any transaction on your Form 1099-K, you can contact us with the item number and any relevant information about the transaction.

Additionally, Form 1099-K does not include the sales tax when it is automatically collected and remitted by eBay.

At this point if there is an error and the numbers are not adding up you should probably call the IRS hotline as eBay customer support will be of no assistance.

forward-motion · ‎04-10-2022

I'm just not sure why the two numbers are off and why the 1099 is higher than the actual sales report.

bearswatching · ‎04-10-2022

I totally agree. I am by no means an eBay cheerleader but really? 12% for thousands of eyes on the product? Consignment shops in my area take 50%! It’s still kind of a revelation to me that something I paid $5 for at a local thrift shop sells for more than 10 times that much to a buyer 2000 miles away. smh. I guess it just depends on one’s perspective.

slippinjimmy · ‎04-10-2022

@forward-motion wrote:
@dbfolks166mt I appreciate your advice, as you have helped me in the past. However, I'm thinking the sales tax must be included in the 1099. When I run a sales report for last year, I have a gross total of $26313.43 it says includes tax. Then my 1099 has a total of $27,928.79 I have no idea where this number comes from. However, when I add the $26,313.43 and the sales tax of $1,188.41 I get a total of $27,501.84.

I have an accountant working on it. But for me the numbers just don't add up.

Probably because your "sales" are reported on a calendar basis but the 1099k is calculated using Payout dates. This means that the first and last payouts of a year can include sales from the previous or next year.

The amount you report on Schedule C for Gross Revenue does not need to match your 1099 total and for a great number of sellers it never will.

Paranoia strikes deep
Into your life it will creep

dbfolks166mt · ‎04-10-2022

Agreed. There are a variety of accounting methods the most common being accrual and cash but there are also hybrids. The type of accounting is one of the things that you have to declare on your schedule C and it needs to remain constant from year to year. All have their pro's and con's but variances occur when the sellers accounting type differs from the financial institution that issues the 1099.

While I use accrual accounting for my records I realize eBay uses cash accounting when it comes to payouts. This is going to drive a LOT of people crazy next year in trying to get the numbers to balance. It will prove extra difficult where eBay holds the payout for an extended period of time across the calendar year. New sellers, high dollar items, etc. often have protracted payouts.

monica-sells · ‎04-10-2022

@forward-motion

Did you remember to ADD sales that did not materialize.....

examples: refunds, returns, adjustments......this is where i missed on a couple ....

Here is from the ebay help page: 1099-K

This amount (total) does not include any adjustments, for example, credits, discounts, fees, refunds, or any other adjustable amounts. This means that the gross amount on your Form 1099-K may not be the final reportable amount on your tax return.

Quick example----sale for $10.00 Free Shipping - (customer returns and the $10.00 is refunded)

YOUR sales column will show that $10.00 on the minus or even side (0.00 wash)...the 1099-K will show it as part of the total for the period

I am not including shipping costs, return costs, etc.. because they do not affect the actual 1099 amount in this example.

So what this means is that your sales total...All these adjustments need to be reconciled (deducted) from that 1099K "Top Line", as well as the delayed time to process as pointed out previously.