Question

1099k question - EBay

Forum|Forum|4 years ago
March 6, 2022
2 replies
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This is my second year with a 1099k from eBay sales. I sell personal items, collectibles, and some finds from garage sales. Making a profit on some of the vintage stuff and loss on personal items. Last year my 1099k was from PayPal and this year from eBay after they took over managed payments as my state of Illinois requires reporting over 1000.00. eBay only accounted for my sales on my 1099k that they took over payment processing for and the earlier year sales of about 721.00 through PayPal I never received a form. So do I enter this on a second line under my 1099k as other sales?
I also deducted a home office last year using the simplified method but no longer have it this year so I’m assuming I leave this blank? I also took full depreciation of a computer in the amount of 686.00 that we purchased in November and put in use in December. Well this year I’m not using that computer since about February as I got a tablet from work and gave this to my son I noted this on my turbo tax return will turbo tax automatically complete the recapture and deduct what I need to repay to the irs? Also,I have no inventory and left my cogs blank last year and counted everything as full profit, can I do the same this year as I have no receipts and don’t want to make up costs or will this cause red flags with the irs? I’d rather underclaim then over with regards to this, I did deduct my eBay selling fees, office supplies, shipping costs, and PayPal fees. I did put my shipping costs under office supplies but I think I should have listed these in miscellaneous, any help would be greatly appreciated.

TurboTax Live Self-Employed Online

ColeenD3

Let's take the questions one by one.

1) If I understood you correctly you only have a portion of your sales reported on 1099-K and no other reporting form. If this is true, you can list the balance of the income as cash.

2) Yes, omit the home office.

3) Yes, TurboTax will recapture the depreciation. Note that you gave it away as opposed to selling it.

4) According to tax law, you must take all your expenses that you are entitled to. This is because EIC is based on income. Do the best you can to reconstruct your costs.

5) Yes, shipping should be miscellaneous.

J

jjzonka Author

Thank you so much, I did not claim my cogs last year and left blank, will this be a red flag? Also, I do not receive the EIC due to my w2 wages and never had. I am selling stuff that I had for years and some I may have received as gifts, I have no idea what the value is, I can’t leave my cogs blank and just claim the profit as I did last year? If not, will this be a red flag from last year as now comparison of my returns will be different ? I did deduct my fees etc, and paid the self employment tax.

ColeenD3

Again, I can only speak to best practices. Even if you don't get EIC, this is still an IRS rule. If you choose not to report the costs, yes, it could be a red flag. The IRS expects you to keep accurate records for your business.

S

SHENFUNak888

I got the Form 1099-K From eBay . gross amount under 20,000.00 ( year 2022) number of payment under 200. do I need to report to IRS, ? When I fill all of the detail , and Turbotax still ask to fixed the error. when I run smart check for continue. thanks

PatriciaV

Yes, you need to include the income from Form 1099-K since this is also reported to the IRS.

Enter this income in TurboTax under Wages & Income >> 1099-MISC and Other Common Income >> Income from Form 1099-K. Answer questions as they apply to your situation and enter the information from Form 1099-K. TurboTax will determine where to report this activity on your tax return.

You may be asked other questions later regarding expenses related to this income.

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