If asks for amount or value from Line # from 1099. Elsewhere in your taxes you put in your exemptions and expenditures that are tax deductible. It all works out in the end if you keep good records.
I don’t think to understand what I’m saying. I would put odds that the 1099 total from eBay will include the taxes they collect from buyers on your behalf, plus postage you collected as a lump sum for sellers to expense. They may not even take out their own fees. They’ll leave it all up to the seller to break it all out on their taxes. Basically they’re not going to do you any favors. My speculation anyway.
But I have not seen a 1099 yet from them to know what they do/do not include in the total reported to the IRS.
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I received a 1099-K from eBay (Managed Payments) last year because I live in MA which has had the $600 threshold for reporting for a couple of years.
My 1099-K shows my gross sales amounts (sales price + shipping) and does NOT include sales tax.
The 1099-K amount is even broken down by month. If you keep track of all your sales, the numbers will match.
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Just to confirm, they did not deduct the eBay fees from the amount reported on the 1099, correct? You had to subtract them on your taxes as an expense.
Confirmed, they do not deduct eBay fees. The 1099-K amounts are what you received from the buyer.
Sales tax is not included because you agreed that eBay will be the party passing the sales tax to your state’s tax authority so you technically never receive it although you do pay payment processing fees on the sales tax amount.
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Those are the little subtleties that I wonder about. When doing my numbers and trying to match eBay’s reports you find those little nuances. And wonder what will actually get reported to the IRS.
Thank you for the insight.
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It’s done like this because you get that money before you have to turn around and pay the fees, so it’s still income.
Incorrect, as of managed payments you get fees taken directly out of your income. How do you print a statement that shows fees deducted? I have shipping covered as it all comes out of my paypal.
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Payoneer shows all sales proceeds net of ebay fees if that helps you US folks.
For 1099-K purposes, it is the gross amount received from the buyer.
For what eBay transfers to you, it is the net minus fees and shipping if you have it set to deduct shipping from the managed payment.
There is a Transactions report that will show the Gross, Net, eBay Fixed Fees and eBay Variable Fees and individual shipping charges.
That’s true, since eBay takes the fees out prior, then yes. Using Paypal, they sent you all your money and then you turned around and paid your fees on a monthly schedule for eBay.
No I did not pay fees, they took it out before they sent me the money and they deposit it in my bank account, not PayPal. I pay for shipping out of PayPal.
Ebay just tweeted out an FYI…
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It’s not popcorn time yet, but it will be soon. 
Better forewarn my 92 year old grandpa who sold his gardening tools this year for $705.64. That tax evading scoundrel! How dare he not keep his receipts from 1948.
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@BatmanFan
In the Marines, during non combat/boring times…they had us rake dirt to make it look pretty 
Your meme made me think of that!!!
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That dirt ain’t raking itself!
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Tweeting? That’ll get the word around.
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I keep all my receipts. I have to report my sales every year anyway, so for some of us who do high volume, this is nothing new.