taxes collected from ebay

[backpacksbymelissa]

Can any one tell me how to handle the taxes that ebay collected? I'm in Illinois. 

Since ebay adds them in as part of the total we made. Can we deduce them as an expense?

I'm on excel but there is no total. Just each individual tax from each buyer. Where can I find the total? 

Thank you in advance. 

[slippinjimmy · Accepted solution]

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@backpacksbymelissa wrote:

Can any one tell me how to handle the taxes that ebay collected? I'm in Illinois. 

Since ebay adds them in as part of the total we made. Can we deduce them as an expense?

I'm on excel but there is no total. Just each individual tax from each buyer. Where can I find the total? 

Thank you in advance. 

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eBay DOES NOT "add them in..."

No Sales Tax collected by eBay are NOT expenses that you can deduct because you never receive these funds and eBay does not report these funds as part of your gross sales reported on a 1099K.

[backpacksbymelissa]

Excellent. I just wondered because they add the item price, taxes and shipping fee to get the final value fee. Thank you so much.

[monica-sells]

make sure you are only using the item price and the shipping you charged for that item for a total

the tax is a wash for accounting purposes (nothing in nothing out for your books)

like @slippinjimmy  said..basically, ignore the sales tax column....just make sure you are not including it in your gross sales.