I sell on eBay, Amazon, Mercari, and Facebook, but most of my sales are on eBay. My records show I made more than what eBay reported on the 1099K. For example, eBay says $38,000, but my records show $41,200 because of other sales outside eBay. Can I report my own numbers instead? Thanks.
You don’t submit 1099s with your tax return. You need to report at least what’s on the 1099K, but if your total sales are higher, that’s fine. The IRS flags returns when someone reports less than what’s on their 1099s, not more. The issue only comes up if the difference is big, not like a small $100 difference.
@Shae
When filing taxes for eBay, do you report total sales or just the profit?
Say I buy something for $10 and sell it for $25. Do I report $15?
Teo said:
@Shae
When filing taxes for eBay, do you report total sales or just the profit?
Say I buy something for $10 and sell it for $25. Do I report $15?
You report the full $25 as sales. Then you deduct $10 as cost of goods sold.
Teo said:
@Shae
When filing taxes for eBay, do you report total sales or just the profit?
Say I buy something for $10 and sell it for $25. Do I report $15?
Both. Get a Schedule C form and check it out. You report all incoming money (including shipping charges) and then list expenses like shipping, eBay fees, PayPal fees, cost of goods, and supplies.
Yes, you should use your own records. The 1099K is just what eBay reported to the IRS, but it’s not necessarily the full picture of your income. If your total revenue is $41,200, that’s what you should report.
@Riley
A 1099K isn’t just a reminder, it’s sent to the IRS. How do people in tax not understand a basic form?
Kieran said:
@Riley
A 1099K isn’t just a reminder, it’s sent to the IRS. How do people in tax not understand a basic form?
For someone filing taxes, a 1099K is just a reference for payments received. The rule is simple: report all income, no matter what forms you get. If OP were asking about reporting less than the 1099K shows, that’d be an issue. But reporting more is totally fine.
Also, no need for insults. This is a community where people help each other. If you think OP should do something else, just say what it is.
@Riley
Telling people a 1099K is just a ‘reminder’ is misleading and bad advice. You shouldn’t be giving tax tips at all.
Kieran said:
@Riley
Telling people a 1099K is just a ‘reminder’ is misleading and bad advice. You shouldn’t be giving tax tips at all.
It’s a reminder that the IRS knows you made at least that much.
Signed,
Another ‘dangerous’ tax pro.
@Kemper
I agree! Not a tax pro, but I used to sell on eBay. I always knew how much I made, so yeah, it’s a reminder.
The 1099 is there to make sure you report at least that much.
You should always go with your own records.
After thinking about it, I guess I can just use the 1099K and add my other sales as ‘other income.’ It wouldn’t be that hard. Still curious what others think.
Emory said:
After thinking about it, I guess I can just use the 1099K and add my other sales as ‘other income.’ It wouldn’t be that hard. Still curious what others think.
Just report total sales as gross sales. As long as what you report is more than the 1099Ks, you’re fine.
Emory said:
After thinking about it, I guess I can just use the 1099K and add my other sales as ‘other income.’ It wouldn’t be that hard. Still curious what others think.
If it’s the same business, just lump everything together as gross sales. The IRS doesn’t care where each dollar came from, just that the total matches or exceeds the 1099s.
@Pax
I was trying to break it down and somehow my refund got bigger, which didn’t make sense. I think it had to do with returns, shipping, and fees. I’ll just use my total numbers.
Emory said:
@Pax
I was trying to break it down and somehow my refund got bigger, which didn’t make sense. I think it had to do with returns, shipping, and fees. I’ll just use my total numbers.
You’re thinking through it the right way. Different ways to do it, but you’re on track.
Report your non-eBay sales separately but still use the eBay 1099.
Aki said:
Report your non-eBay sales separately but still use the eBay 1099.
Only do this if you treat them as separate businesses. If it’s all the same business, lump it all together. As long as your total sales match or exceed the 1099Ks, you’re fine.