Paypal Reporting Income to IRS with 1099-K. eBay Sales Over $20,000 AND Sold Over 200 Items
 

I was reading this article this morning and posted it in another thread regarding 1099-K

http://www.forbes.com/sites/kelly...taxpayers/

I know there are a lot of folks here who buy and sell (using Paypal to receive payments) based on slickdeals they come across. Some folks for profit, some folks, to get their item for free (buy 4, sell 3, get their slickdeal item free). I've been able to get some great deals going the route of buying a few extra and getting the item for free. However, with so many great slickdeals throughout the year and selling, for some, you may have cross the threshold of now receiving a 1099-K from Paypal ($20K gross received and 200 transactions) that is also reported to the IRS

http://www.irs.gov/instructions/i1099k/ar02.html

So, how does one handle this. Some questions that come to mind:

1. What distinguishes hobby seller from small business?
2. Reported amount is gross, not net, where is clarity to show just net income?
3. If you receive this form, and somehow show a result of net income, can you claim expenses, itemized deduction (mileage to acquire items, etc, etc.)?
4. Since this is new, how well are tax accountants prepared to help tax preparers to navigate this new form?
5. Should you create a new Paypal/Ebay account to account for selling personal items/friends items, etc vs items strictly for resale?

Wanted to open it up for discussion. :cool2:

Paypal reporting income to IRS. eBay sales over 20k AND sold over 200 items
 

EBay sellers:

Has any of you sold over 20k on eBay? If yes, how much tax are we expected to pay to IRS?

Apparently PayPal reports to IRS when you have sold over 20k or more than 200 items

One obviously has to report the income while filing taxes...any advises or information, appreciated!

You're supposed to pay taxes on income earned. So if you sold $14,000 worth of stuff for $20,000 and paid $1,500 in fees than report $4,500!

Sales Price less Cost of Item less Fees.

Okay, so for example how much tax I'd be paying on reported $4500 figure?

that depends. how much TOTAL income did you have for the year? including your day job, interest from banks, etc..

That depends on your income bracket, your deductions, and whether your state also has income tax or not.

I have kinda lost count of how much I made since I didn't really kept a track of my own cost ... but I know I din't make much profit to begin with and then ebay and pp fee ate whatever little profit could have made

Ah tried to get this discussion going today as well in this post
http://slickdeals.net/f/3897114-A...rom-Paypal

You may also want to update your title. I think you have to satisfy both criterias, 20K AND 200 items, not one or the other.

thanks for sharing your link ... i guess both of our posts are same - perhaps mods can merge it

on a sidenote we seem to be in same boat, as suggested by your OP .. what do you plan to do?

Will probably consult with a tax preparer. This is a new area for a lot of folks and for the IRS and I do not think they did a good job preparing folks. Im just hoping there are some tax preparers who can really help navigate this first year of this new 1099-K form

Im currently contemplating buying quickbooks to track everything, or find Excel templates already out there or create my own so that I can itemize my deductions since it needs to figured out what my profit is, and then all the associated expenses that goes with that (cost of goods, distance driven to acquire goods, ship goods, packing materials, etc).

So far, for tracking ebay transactions, i've found this, but may be dated.
http://download.cnet.com/AccessPr...73564.html

then there is these guys
http://www.easyauctionstracker.com/

I'm hoping to hear more folks chime in.

I sent a note to the mods to see if they can combine the threads and if combined, will probably use your title, "Paypal Reporting Income to IRS. eBay Sales Over 20k AND Sold Over 200 Items" as that seems to relate to more folks on the site vs my title.

You can claim as much or as little profit as you like. Unless you are audited, it doesn't matter. If you are audited, you will be expected to provide some level of proof for what you paid for the items. If it was just a bunch of household junk that you were selling off after years of accumulation, it won't be an issue. If you were selling new items or items with questionable purchase history, then you better be able to show what you paid for them.

Yeah, I didn't keep a lot of receipts once items were sold and 2 months had gone by and there was no need for the receipts anymore. Luckily, some of the items were from Best Buy and Sears and I can most likely get those receipts recreated. Now, deals from Target, I probably will not. But as you said, that is if you get audited.

How nice would it be to put down an mileage of traveling to store to store (Target deals are infamous for this) to find a slickdeal and put it down as a part of your itemized deduction for being in this category :lol:

Went to HR Block today to get some information, and as expected, EVERYONE is learning how to treat the 1099-K. Was told today that information the 1099-K will then lead someone to do a Schedule C

http://biztaxlaw.about.com/od/glo...edulec.htm

So this probably takes folks out of the realm of a hobby seller, into a self-employed type bracket or small business, even if its not your primary job. And all that is associated with that (expenses, deductions, profits, loss) should be known so to report that.

Pretty basic tax setup with the schedule C, should always be using one when selling stuff for profit. Please be aware that you do get screwed on self employment tax, which is currently 15%. I would also recommend not wasting time at H&R as they are about as knowledgeable as a rock.

Keep Receipts
Keep track of mileage during your endeavors
Request yearly credit card statements to pull data from

For ebay, sign up for Sales Reports Plus to get a detailed monthly breakdown of sales/fees etc. In paypal, create a spreadsheet using the Historical Sales Report on a monthly basis. This report will show you every single thing you sold, tax collected on, etc.. If you sell via Amazon, use the monthly report. Create 12 separate spreadsheets with the data.

so one can't just say that my estimated cost is say $25K and after ebay and paypal fee .. didn't really make a profit .. ?

I wonder if it will take me entire another year to calculate what I sold, how much I bought them for etc. etc.

what a mess I seem to be getting in..

So you don't keep track of anything you buy or sell? May I ask what it is you sold?

sounds like someone who already has a system in place :D

I just bought Quickbooks today, after giftcards, was inexpensive. Was going to set up spreadsheets, but think I'll try this route out. Thanks for the tips :nod:

You can always go based on Ebay history and estimate cost of good, packing material, to figure out your net and submit that. Its if your audited, that data becomes more valuable. I'll start my tracking and keeping receipts as of now.

I don't think a lot of us does. For example, the Monster 50% off sale, a lot of folks bought to sell some items, and get their personal item for free and get some pocket change in the process. Im sure there were a lot of folks who didn't think they surpassed a mark where it was felt they should have been tracking. This year will make folks like that MUCH MORE aware.

I would be interested to know how easy it is to integrate Quickbooks after the fact.

so are we expected to submit all purchase receipts? I sold a few TPs, and some electronics from black friday deals

apparently I did buy quick books from staples so I now need to find where I kept it and then to use it to tabulate!

To my knowledge, you do not have to submit receipts unless they are requested. They are typically requested in an audit, otherwise, i am assuming now, if your numbers look good, then you are fine. Just a lot of backtracking booking to be done at this point to the best of your ability.

Integrate quickbooks with Ebay?

Why would you submit receipts? All you do is figure out total revenue - total expenses. You use receipts to figure out cost of goods sold. If you get audited they will want to look at your receipts/credit card statements to verify that everything matches up.

yes, I have actually no idea how I am going to tabulate - i sold around 250 items so its not easy to backtrack at this point ...

what a mess I hate ebay/pp now :D

In Paypal

Click Reports
Click Download History
Download and save reports for every month of 2011

I plan to do this through Paypal and Ebay to start figuring out line items, and then fill out the necessary data to determine net. Its going to take some time, but the alternative is telling the IRS that you netted what you gross, which WILL NOT happen :nono:

what do you mean by this, 'telling that you netted what you gross?

You will be paying tax on income that is not true income if you simply just tell the IRS that the amount reported on the 1099-K was pure income, which it is not. I'd take it day by day, download the monthly reports from Ebay sales and do a month a day in terms of lining up all the items sold, and if no receipts, guestimating what you paid for them.

Can't get a straight answer on this - maybe someone knows?

Are payments you get through Paypal as purely CashBack [fatwallet.com] from sites like FW, MRB, BC etc supposed to be considered in the 200 limit / considered as payment for the sale of "services?"
We aren't hiring the sites and collecting payment, or so I thought, but I got a 1099 because the FW, BC, MR payments pushed me from well under 200 to over 200.

Thanks!

I can not find where to enter the 1099K information. Any help would be wonderful!

Thought you might appreciate some tips here
http://www.wholesaleforum.com/dis...ose-12520/

You bring up an EXCELLENT question, as I completely forgot about cashback transactions through Paypal, ughhh :(

Sorry, haven't gotten there myself, so couldn't answer this question.

Thanks for replying, if you do find it please let me know! I have been looking but cant find it at all.

Just as I thought Cash Back payments are NOT supposed to be counted!

PP replied to my email today with a typical cut and paste without actually addressing the issue, BUT did confirm that Cash back payments ARE EXCLUDED!

HOWEVER - they absolutely DID count every single one on my account in the number of payments received. I would have had well under 200, and due to them mistakenly counting the CB - I went over 200

I am always amazed at how they manage to completely ignore the issue - I wrote to them saying CB payments were mistakenly counted and could they correct, so they replied stating the terms and ignoring my issue. AHHHHH!

Here's what they said

What transactions will PayPal be excluding?

PayPal is required to report your total gross payments received for sales of goods or services that were received through PayPal for the previous calendar year. As required by the IRS, this amount includes all fees and/or payments associated with your sales, including shipping fees or sales tax received.

The following transaction types are a sample of some of the transaction types that can be excluded from the gross payment received totals: Personal Payments, Add Funds to PayPal transfers, Debit Card Credits and Debit Card Cash Back Bonus, Merchant Referral Bonus, Cash Back Bonuses.

Definitely appreciate this clarification on this point and nice to know SOME things don't have to be taxed.

YW - the problem is though that they ARE counting these mistakenly (at least they did for me, so assume it's for most/all) Which is going to either never get fixed or get fixed after the fact

I got a question hope i can get an answer too.

First i dont sell on ebay but i sell through email and other sources selling personal collection of things cds, dvds etc and this past year i needed some money for bills i needed to get of almost all my stuff which is a few thousand cds and dvds and some how my paypal gross got to 23,000.

My question is this if i use other forms of payment who also file the 1099k such as Google Checkout who has the same rules the 20,0000 and 200 transactions.

If i have 15,000 in sales on paypal and 15,000 in sales on google checkout will they be reported combined or does each company need to go above the 20,000 and 200 transactions? In total its over 20,000 but separate it is not.

thanks

Yes, it is "per company" however some companies have been sending 1099-K's for even $200 in sales and 4 transactions. The $20,000/200 is only a "required" 1099-K point but it can be sent at any point. PayPal, Amazon & SquareUp have stuck with the $20K/200. Not sure about Google.

Yes, each company would have to surpass that threshold each to have a 1099-K given to you and the IRS. Now, if you didn't cross that threshold on either case, I still wonder if you "have to" report on it if these companies do not submit that information to the IRS.

Paypal email support is useless x 100. Don't bother emailing re: this issue, the replies are so ridiculous and moronic it's beyond comprehension how these people got hired to deal with financial issues!

I'm trying to call to get an answer on why they did the opposite of what their terms say they should do, however, it looks like ALL users cashback payments WERE counted incorrectly, pushing many over the 200 limit and getting reported when they should not have been

Techincally yes - supposed to report everything regardless of whether the co. reports.

I wonder if Paypal reports money that it steals from its customers, or hold for a indefinite period of time..... Guess the gov't isn't interested in Paypal's crooked business policies...

Guess your tax money isn't going to the gov't to protect your rights as a consumer....

sounds like someone who already has a system in place

Now PP says that cashback payments are actually NOT technically excluded, because the sites send payments as "mass payments" (obviously as they send millions, so ANY cb site will use this method.)

The response:
It appears that all of these were not casbacks rather mass payments from urlhasbeenblocked.com. That's why all of it was counted as received payments.
I hope this information clarified your confusion between a cashback from a received payment.

I get that they can't control how people send money, but if its a site that CLEARLY only sends CB money, they should be able to distinguish.

what happens if you just ignore the 1099 for 2011??? ;)

I'm seriously having a freak out moment...I got a 1099 in the mail and didn't realize that I had received that much via Paypal! I thought it was just a hobby LOL...now really, I have to backtrack the WHOLE YEAR?

Everyone breathe :) http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

Notice there on line 1a. "Merchant card and third party payments. For 2011, enter -0-"

Also, I recently attended an IRS convention and heard repeatedly that the service will not be matching these numbers to tax returns this year (doesn't mean that next year they wont look at this years return and compare it to your 1099k, or just see if you have a schedule C in there). With that said..if you are selling on the internet at these levels you best damn be reporting that income on your small business return, cause no matter what you think, you are a small business.

My suggestion, is to make sure that you are reporting AT THE LEAST the amount shown on the 1099k statement on your C. You can then expense the cost of your inventory, your fees, and whatever other expenses you can come up with to reduce that amount.

Also, be aware, your state government may have a gross receipts tax, sales tax, etc., and they may be requiring people selling over the internet to pay tax on those sales. If you report gross income on your C, you want to make sure that you are paying the appropriate sales tax, because the states are starting to match those numbers, Ive had a few clients audited recently due to this exact situation.

Final suggestion to everyone is not to think you are smarter than the taxing authorities, they will catch you eventually..and you will pay more then than if you report and pay the appropriate amounts now.

Good Luck!

It is either backtrack to the best of your abilities or pay the IRS more than you wanted. Im doing a month a day or two at a time. We have until April to get it right and at the same time, ensure we are properly setting ourselves up for 2012 taxes. I doing an Excel sheet right now, but bought Quickbooks. Still contemplating after Im done my backtracking if I should QB or not, based on reviews or leave things in Excel.

Also, you bring up a good point, hobby seller vs small business. Whether your making money from photography, selling junk you work on or on Ebay, once a certain amount of profit is turned, I think you are viewed as a small business and no longer considered a hobby seller.

Well, at least we get to write off some deductions, but my question to that is, if we are being viewed as a small business, what other items should we know about being a small business if we never saw ourselves that way to begin with :scratch:

I hear terms of sole proprietorship, LLC, etc. Do we need to establish something of those sorts to do a schedule C? I haven't researched these items as of yet as Im still backtracking 2011 :sadwalk:

This is going to take a while LOL! I was going to work with Excel also, but I have been researching and found this software that looks like it would solve most of my problems going forward:

Easy Auctions Tracker [easyauctionstracker.com]

I have read a lot on it, watched the videos and it seems like just what I need. Has anybody tried this program???

I've seen this software, but for $50, I think I'd rather stick with quickbooks that I got for $100. If it was $15, then I'd bite. I also want to track inventory bought, mileage to post office, shipping supplies bought and office supplies (ink, paper, printer, etc) used for Ebaying. This may track things to give you your net, but what about deductions?

Yeah, I just like how it pulls everything into it automatically...I think I will do the free trial and see if I can add in things for deductions...have you found an Excel spreadsheet that works well? Does Quickbooks pull data from Ebay and Paypal for you?

A "hobby seller" still reports the income they make in the course of the hobby to the IRS, the difference is that they do not get to deduct hobby loss against ordinary income, and they are limited to deducting against that hobby income on the schedule A under misc deductions (which are limited to anything above 2% of AGI, and can only be used if they are in excess of the standard deduction). If you are making money, you want to be classified as a business. The IRS will actually challenge your business status if you have too many loss years in a row (at that point they make your business into a hobby with the above limitations).

Secondly, a sole proprietor is just a person in everyday business, requires no special forms or start up procedure. What you may require is a tax id from your state, or an employer id in the odd chance you employ another.

So, lets put out as an example that your gross is 50K reported by Paypal, profit is 10% of that, $5K. In general, how would one classify themselves and what schedule to use for tax purposes? Based on what your saying, if you claim hobby seller, you won't be able to claim as much regarding deductions. But if your recognized as a business, then you claim all the deductions that comes with being a business?

Exactly right. And dollar limits are not involved, if you are a sole proprietor or joint venture (basically all others but partnerships, c and s corps) you belong on the schedule C.

Was reading this
http://www.irs.gov/irs/article/0,...56,00.html

And this stuck out
An activity is presumed for profit if it makes a profit in at least three of the last five tax years, including the current year

So, adding to what you've already said, unless folks already set themselves up as a business in 2011, everyone here is a hobby seller (due to this being first year Paypal reports gross income) and the IRS could potentially see you as a business if the hobby creates profit for at least three years. So, schedule A it is.

Depending on how much profit folks made, and these new rules, I will assume there will be some folks wondering if they should register themselves as a business of some sorts?

Question: You mention the IRS can challenge your business into hobby selling limitation. Would they challenge hobby selling to be seen as business and make you do the necessary steps that is associated with that?

Oy, this is all very confusing to me, for some reason taxes are like Greek to me, and I'm a smart gal! I mean really, how hard are they going to make this for us...can't I just file taxes with the 1099 without being some kind of business with an ID, or picking some kind of "schedule" form?

Guess it's time to hire that tax guy...the husband is freaking out saying we need an accountant, a tax person, ect.

Also, I have done a lot of research on ways to track sales/profits/expenses. I have googled to my heart's content. At this point I will probably be making my own Excel Spreadsheet since I just purchased Office 2010. I would be interested in hearing what people are using...or if you already have a spreadsheet that you would be interested in sharing...

I can share my spreadsheet columns once set up (still working on it). As Im backtracking, Im refining. I'll send you a PM once I have those columns mapped out.

thanks so much! :hug:

This is a misinterpretation, many, if not most business start-ups do not make a profit their first, or second years around. The IRS tracks these loses, and if they go on too long they will make it a hobby.

The primary purpose for this hobby/business thing is that if they don't approach it like this, the rich will abuse the ability to take a loss on something fun (against their normal income), like a amusement park in their backyard that no one goes to, but they enjoy (major exaggeration, but these things happen).

So even if you don't officially have a business, you can do Schedule C and claim deductions like a small business? Ahhhh, not enjoying tax season right now :(

New vs Used Sold Goods
 

I figure this would be a question someone would eventually have, so the 1099-K reports gross on all incoming payments. As earlier said, cashback is to be excluded, but was not, and somehow that amount has to represented as excluded. What about used goods? Do you just put those in as a loss or do they count? If I sold my old Iphone, that amount is a part of the gross reported, but it was sold geared to what selling for profit on ebay, just sold cause no longer needed. Curious how to make those distinctions.

I would like to know as well. Now that I received a 1099, I am going to be re-creating all of 2011 (FUN) and there are a lot of things I can deduct (gas, ect.). I also have a regular full time job. So what forms do I need to use to file this year? I think I will just go to a tax person...

Suggested reading material
http://www.amazon.com/-commerce-R...269&sr=8-1

That looks good! I wish I could find some reviews on it though...

I just finished up my return and I was a pretty active amazon seller. Just make sure your 1099-K matches your revenues and then deduct your cost of goods sold and tax deductible fees and costs -- that's your net.

If it was a personal item you purchased for more than the selling price, you can only deduct the selling price (cannot show a loss on personal items). That's my understanding.

that helps clear things up on selling used goods that were your personal property vs new goods sold for profit. Thanks and repped.

Check out the ebay application called Outright [ebay.com]. I have just started to play with it, but it looks like you can add your paypal account and such, and use it to help fill out taxes.

Repped for the suggestion :nod:

Thanks. I ran across it when looking up 1099-K form information since I am curious for 2012. It imported all of my information mostly correctly, and I was able to manually change anything that wasn't. It looks like you can add other account (credit cards, banks, etc) similar to what Mint lets you do, which would be very helpful for people that spend a decent amount, and have a card dedicated to buying stuff to sell.

I still have not found where to put the 1099K in, I am using the free turbotax system that was posted on slickdeals the other day, I have everything else done but that!

Yeah, I tried using that...funny thing is it isn't compatible with a lot of new updates of some browsers, including my Firefox! I asked them if they were planning on updating, and they didn't really know. :rolleyes:

I tried it as well and I wasn't sure of the accuracy of the dates on the data, maybe 1 or 2 days off on certain transactions. I'll continue to refine and populate my spreadsheet so to create pivot tables and graphs off the data.

Yeah, the whole thing seemed kind of "off" and I didn't find it that user-friendly. This week I am diligently filing all of my records and getting ready to start re-creating all of 2011 :vomit:

Are you a hobby seller yourself, or do you have yourself a small business setup?

Small business all the way my friend .. ;).

And lets see here, first (http://www.irs.gov/pub/irs-pdf/f1040sc.pdf), the 1099k reportable will not have its own home this year, you can see on line 1a "Merchant card and third party payments. For 2011, enter -0-". If you only have sales through 1099k providers, make sure the sum of your 1099ks is lesser than or equal to what you enter on line 1b.

Next..other expenses.

1. Lets approach vehicle expenses first. There are two different ways that the IRS allows for calculating what to deduct for your vehicle usage, the first is actual, and the second is based on a per mile allowance (.55 cents a mile this year). The actual mileage (based on receipts that you have collected for your actual expenses and then limited to the percentage of business use to normal use you have) VERY RARELY results in a higher deduction, especially if the vehicle isnt used primarily for the business. The 55cents adds up! You need to have some sort of record, so Id suggest google mapping your drive from home to post office. Then multiplying that by the number of times you went, sourced from some amazon record of shipping (and making some sort of spread sheet as proof). Also, once you have chosen one of these methods you are stuck with it, you cant switch back and forth.

2. You are selling on the internet with a computer. Maybe you bought one during the year that you use for your business. This is a capital asset, which means that for business purposes it should be depreciated over a set number of years (5 regularly I believe)..not simply expensed. (When an item is depreciated it has a yearly expense associated with it. Which means this year you wont take the full deduction for its value, but only a portion, and the rest will help reduce future years of income.). There is currently something called a 179 deduction where you can take the full value of a capital asset in the year that you purchase it.

I have made the previous paragraph somewhat comprehensive so you can understand what I say next. Consider both of these options, sure a large deduction this year is nice, but if you (as I) believe that taxes will be going up in the near future (or that you will be making more money in the future) you may want that yearly amount of depreciation. Up to you

3. Office in the home deduction. If you have a space that is used specifically (and in this case specifically means specifically..if you are audited and they come to your house you better not have anything but work in that room), you can take a percentage of the price to run your home (which would include mortgage interest/rent, insurance, utilities, repairs, etc.) based on your office sq ft to home sq ft ratio. This can be fat. But it needs to seriously only be used for business.


Finally, let me put this forward to all..if you are uncomfortable with your tax situation, don't want to do your own taxes anymore, or just plain want to see (cause most will review for free) go see a CPA or EA (lesser known certification, but proven experts in tax). Their fees can be quickly recouped and, in many examples, far exceeded by the savings they uncover.

for those over 200 transactions but below 400...couldn't you just have someone else in your household (spouse or parent) open a paypal/ebay account and sell your stuff?

Actually, he would need to to report $20,000 and then report $15,500 in expenses. Paypal will report it to the IRS anyway if you cross the threshold so lying about it is only going to get the individual audited.

Great advice, thanks for those tip. I know I won't be using the home sq ft deduction cause the space I use is multi purpose. And the mileage for post office run, I don't know how you could have receipts on that other than just tracking it and showing a spreadsheet tracking those mileage as proof, and even then, that all could be made up.

What tax software is everyone using? Any one better then the other? Thanks!

So far, i know a few of use are creating our own spreadsheets. If purchased Quickbooks Pro 2012 for $100, but waiting to see how my spreadsheet pans out once I finish it.

But you can start with this solution for $40
http://www.avanquest.com/USA/soft...012-159243

Also, based on this thread, Quickbooks Online Simple Start is free after rebate at Staples next week.

Always happy to help

With the mileage allowance you don't need receipts, but you do need to keep a log, or have some way of tracking your actual business miles. Its also always a good idea to include non-biz miles on the return, and make sure that the total of the miles you've reported, for this and previous years, doesn't go over whats on the odometer. (Start here: http://www.irs.gov/taxtopics/tc510.html)

If you are asking what keeps you from cheating on your tax return...that's for you to answer my friend

Haha, reminds me of when I was younger (and ignorant about taxes).

In college one year I had about $45k go through my PayPal accounts in under half a year from my eBay business. I was just a middle man though, so I was converting it all and sending it to my PayPal account overseas where I had another account. Couple months later I get a call from my Dad asking me why the IRS sent a letter to our house about me. :lmao: The good 'ol days...

Is anyone using turbo tax to do their taxes? Im considering this version to do mines
http://www.staples.com/TurboTax-H...uct_375311

One other question, can recall if you or someone else had already answered. Even though folks here have crossed the threshold to have gross reported to the IRS, to use Schedule C, do we have to be some type of business, like sole priopertership, or something, or can claim business deductions without actually having a business? Now sure if this Paypal reporting automatically makes you look like a business, making you use Schedule C vs A.

Natural thing they are forced to do this (and others like amazon). Online shopping [statista.com] is increasing and at the point where everyone buys everything online (theoretical approach) the government would have no sales taxes (and less income taxes) anymore. Thus they better think about how to collect those online!

I had a lot of amazon sales and received my 1099-K. I filed earlier this week via Turbotax.

i sold some stuff on amazon and it says i dont have 1099k form

You wouldn't get one if you didn't cross the threshold?

Do you already have your own business or no?

Also, I've gotten conflicted answers to this question, so let me ask it here. Does one deduct mileage for obtaining product. So a run to Target, Best Buy, etc, does the mileage to get the items count as deduction and a record should be kept of that as well?

LOL...just got a Kiplinger tax update in the mail today, looks like these forms will not be going out next year because of the Sh$t storm that followed them...Good bye and Good riddance!

New Developments on IRS 1099-K Reporting
http://www.nsba.biz/content/4425.shtml

:woot: NICE FIND :woot:

what exactly does that mean? sorry, I'm not good at "tax-speak" LOL!

If tha'ts ur total income...then $0

It means first that this year you are not REQUIRED to put your income from your 1099k on the Schedule C (if you aren't reporting this income at this point though you are breaking the law). It also means, from what I can tell and have heard, that they wont be sending these statements out in the future.

That doesn't mean the IRS will not use this information to judge the correctness of your return. It just means that they aren't directly matching on the front end.

I know that taxes suck, I know its no fun to pay them, but, our society/government needs this money. If you aren't reporting this income on your own you are CHEATING, and should consider the old saying about what you do when no one is watching.

Now off my pulpit :P

Roxwella, did you see my post #81?

Just saw it...the answer is not pure clarity.

This is not really a threshold situation, its more the intent you have in respect to the income. If it is regular and recurring, or it is engaged in with the intention of making a profit, or the activity is conducted in a business like manner the income should be on a Schedule C.

In respect to what form the business takes, the only type that goes on the C is a sole proprietorship. If you have formed a partnership or s-corp (could be taking salary/guaranteed payments as well on W2), it does its own tax return and then gives you a k1 with certain pass through items. If you have a full on corp it will do its own return and you will take dividends/salary.

In a sole proprietorship you are the only owner and unless you are also an LLC, you are 100% liable for any debts, etc. This income is subject to self-employment tax (effectively paying your own social security and medicare tax. Half of which is taken as a deduction to regular income). This formation occurs without effort, you doing business makes a sole proprietorship.

Let me rephrase my question, unless this does answer it.

If I am not a registered business, can I still use Schedule C, or do I have to be registered to use it? Can anyone joe from the streets use schedule C on their taxes but not have a business, but made profit from a business-like setting?

The second part of the question would be, if your answer is you HAVE to be a business to use schedule C, does the timing of when you register have impact on using schedule C this year. If I register as a business on April 1, will that count retroactively as a business for last year or only from registration date and forward?

I hope that clarifies what Im trying to ask. TIA.

Yes you can use schedule C without being a registered business.

Not following your second question...but if you start a business on 4/1/2012 and assuming you are filing calendar year then revenues and expenses would be reported for the time period of 1/1/12 thru 12/31/12

My second question was based on the answer to the first. If you had to be a business, would it be based on a calendar year of when you started your business or a standard calendar year? But, since you don't have to be a business, my second question is mute.

So,
1 for 2011 taxes, not registered as a business, can use Schedule C (but seems we "technically" don't have too based on information roxwella found.)

2. for 2012 taxes, registered as a business (sole proprietorship for example), can use Schedule C

Correct...but again it depends. You could start a corp and use a fiscal year that doesn't match a calendar year for tax filing purposes.

Ok, then that answers all my questions. Appreciate the help, repped :thumbup:

do you know if there is any further information regarding the usage of this form for 2011?

I have a question for the tax masters here.

So Paypal sent me a form saying I received 34K in deposits. My mom got some lame accountant and he had me make a list of my purchases to write-off, I totaled them to 28K (though that's a guesstimation, I had a lot of different accounts receiving/spending money and didn't keep track). I also received two college tax forms with tuition around 10K for each (not sure what to do with them). My mom's accountant said I needed to make a business or whatever, but is this the best way to go about this? He also said I'd have to pay 28% on my income. Can I fill out my taxes for free in an easier way? Also is there a way I can avoid paying like 2K in taxes, I know I seem like a bum and should pay taxes on my income, but I got to save money where I can. I'm a 21 year old student btw, I don't know if that's useful at all.

best thing to do is just register as a business (Sole Proprietorship) with the state. Collect tax on your state purchases on eBay and file with your BOE every three quarters.

Trying to finish my taxes up, I got a 1099K from stubhub, approx. 45K in sales, most at face value some more some less. Where does this go to? I am using H&R Block online. Any help would e greatly appreciated. I just cant find where it says to put the 1099K. Thanks

This will be a disaster if I want to calculate it out accurately. I don't have any idea how much I paid for the items, how much miles did I drive to mail items. I think maybe the time I spent to shopping and mailing all count to my expense?

So in this year we don't need to deal with 1099k, just treat it like no 1099k at all?

Simply put, if you have income, then it should be reported. The 1099-K just makes it easier for them to match up sources of income with you. If you have income beyond a de minimus level (which if you're receiving 1099-Ks then you're likely above), then if audited at some point then they will find it since they'll have access to bank accounts etc.

You can count expenses and cost of goods against income. You cannot count your time. Technically, if you set up as a business and were paying yourself in some way then you could count labor as a cost for calculating business income; however, it then would be income on your end so for practical purposes it's a wash.

I think for small business, we should count time, we can say we hired some Mexico people shipping or buying for us.

As long as you have records to show that you paid that cost, then you're good. If not, then no go.

Anybody can kindly share what kind of excel form you prepared? I am totally in dark how to prepare it. Thanks a lot!

I don't think it's possible to prepare those, you need to write down each time you mail the item, things include how many miles to post office, how many miles to store to buy item or return item, and what happen if the item is for self use first then later you decide to sell it? You need to write down and keep a receipt for basically everything you bought.

Yes that is almost impossible to track all these. Can I just fill the schedule C with an estimate of the costs of goods sold at line 35 and put the eBay and paypal fee at line 10 for Commissions and fees? Then calculate Net profit on line 31. Which line can I put the shipping fee on it? I don't want to complicate things by putting too many items though. TIA!

I don't sure. I will put an estimated amount for expense. But based on this discuss

http://forums.ebay.com/db2/topic/...7?start=72

We don't need to report 1099k at all. I don't know why people here want to report it. IRS said they will not use those 1099k this year, but people here said maybe they will use those as an audit in the future?
This 1099k really is a heavy burden for everybody. I don't know how much a small company will pay for accountant on this thing.

I think you still need to report it since nothing official from IRS website stated not to or postpone to file 1099k tax in 2011. Is the dead line to file tax before 4/17/12?

Again, you've always needed to report the income. The only thing different this year was that PayPal (and all other merchant accounts, etc.), were required to report the income directly to the IRS via the 1099-K. The 1099-K requirements either way do not affect your requirement to report income. It simply makes it easier for them to match a specific income source with a specific person on an automated basis. As in the case of other 1099-type forms, where they see money reported from some source and no corresponding reporting on your end, then that will throw up a flag. Because you don't receive a 1099, it's less likely to be flagged but that that doesn't mean that the money you made is free and clear and that you don't need to report it. Obviously, you can do whatever want but that's the deal.

The 1099-K forms actually make things easier for me. Previously, I had to go through PayPal and other dumps and calculate the totals. Now I can just rely on the amount reported on the 1099 and deal with some exceptions. Still need to deal with the cost/expense side, which is the biggest pain, but that cuts out a lot of the work by giving me an easy "official" source for most of the income side.

Here is the link from IRS.gov

http://www.irs.gov/newsroom/artic...29,00.html

I just sell for hobby and the income is very small, not even a small business. The problem is how can we approve the expense without change my life? Small business are protesting in congress.

so essentially, we get a pass on 2011, but are fair warned now that it can be used for audit purposes 2012 and moving forward, that is how I interpreted all of this. Only the 1st quarter of 2012 is complete, and I can easily go back and see what I've done so far, vs estimating 2011. Im somewhat glad this came out, as to now make me better at tracking all this and truly seeing where I can improve. I always wanted to track, but wasn't motivated to do so, but now, there is reason that can be helpful down the line.

I appreciate everyone's input and glad this thread was useful for some. :nod:

I am not sure what's IRS mean. Why they said bank and PayPal released from report 1099k, but I still received it? Did paypal report it to IRS or not? We need somebody with accountant background to confirm we can ignor the 1099k.

http://www.irs.gov/newsroom/artic...29,00.html

Interesting read here
http://letters.auctionbytes.com/c...17364.html

Very interesting. According to the 'Notice 2011-89' that this links to, they are saying that there will be no penalties to payors not accurately filing 1099-K for sales in 2011 "in order to provide additional time to develop appropriate procedures for compliance"

However it also does state this applies to payors that make "good-faith efforts in filing accurate Forms 1099-K". Which can be interpreted in different ways since if it was reported to IRS, you would either be reporting the correct amount, or something less or zero, which is inaccurate...

government lackeys and their ways of making something that could be simple, complicated :facepalm:

OK. I just decide to report those and tried Schedule C, if you need to do it accurately you should hire a great bookkeeper in you house to record all you travel, meal, each time ebay and paypal fee, each shipping.......

BTW. I just estimated all the spending. Looks like we all paid huge money to ebay and paypal. I still didn't record spending in 2012, if I want to do so, my life will be miserable.

Is there any free or cheap software to file schedule C? Where to put the ebay and paypal fee on Schedule C?

Here is a question I can not find an answer to. If both me and my wife sell on ebay. We are legally married, live att eh same address and in general usually file taxes together. If neither of us alone hits the 20,00 mark but say together we hit 30,000 does this still get reoported? Someone hit me with an answer...

Why can't I count my time looking thru all the SD's to find the few that I actually profit on?

Isn't that considered R&D, or research?

If I never looked thru SD to find a particular deal I never would have been able to sell that item for profit so IMO, it was indeed an expense because my time as my own employee could have been spent doing something else instead of research.

I'm sure bio tech and other companies are able to write off their employees time doing research so why not us?

If I paid myself, I would just pay myself minimum wage if I had to write it off as income.

Read my post again, in particular the part re "...if you.. were paying yourself..." That wasn't his situation.

In order to write something off you have to be able to quantify it in specific dollar terms and also provide support that shows that you actually incurred that cost. Which you could do if you were paying yourself or someone else as an employee or paying on a contracted basis. But, as I said, in that case you'd have to claim the income at a personal level so net-net it really doesn't buy you much as far as reducing income for tax purposes. If you pay yourself at a minimal level, then the value of the amount that you can write off will be minimal as well.

Hello,

So if on ebay I sell lets say 300 items but I only sell these items for 2 or 3 dollars each. Would I still need to report to the IRS?

Read their terms and conditions patiently and properly

Lets get to the nitty gritty--how do we get AROUUUUUND this? I was going to simply sign up for another eBay/Paypal account using a family member's info once I came close to $20k, but a person I talked to at Paypal said if they see similar items being sold from multiple accounts @ the same IP address, they'll just lump them all together and issue a 1099 anyway. So there goes that plan. For now I'm just pulling all my ads down once I get to approx $19,500 in sales and just waiting until Jan 1 to start selling again. I'm not going to deal with all this headache. I wish you could use other checkout options (like Google checkout) on ebay so that the $$ could be spread out over a broader area.

whos to say two people at the same ip address cant sell similar items for legitimate reasons? Thats like living with a roommate that works at the same place and the goverment saying they are going to combine your incomes and put both of you in a higher tax bracket. My girlfriend and I will often get in on the same deal and sell the item...but her money goes to her bank and my money goes to my account.

I called PayPal to make sure and they said 2 seperate accounts at the same address was not a problem. when reporting to the IRS they only look at the tax id/ss# and not the physical address. He said that they had a problem with people trying to avoid the 1099 by having multiple PayPal accounts linked to the same eBay name or vice versa. I specifically asked about my gf and I living at the same place and having 200+ transactions when combined and he said it would only be a problem if we had a shared PayPal account.

Weird, that's a totally different answer than I got from them! I guess it depends on who you talk to there. I asked the guy, I said "What if a husband and wife at the same address used to sell on eBay together, but under the new tax rules they decide to split their business into two individual eBay/Paypal accounts to avoid going over the $20k limit? For example instead of selling $30k together they each sell $15k individually?" He said, "As long as the two accounts are selling different types of items that should be fine, but if we look at both accounts and see the same or similar items being sold, we'll assume it's the same person and combine the accounts together and issue a 1099." He even said (at the time when I called) that they were still working on issuing 1099's for customers who'd tried to game the system that way.

I don't know. I just hung up and decided it wasn't worth the risk or the headache. In the end eBay is suffering. We're only half way through the year and I'm already at $16k in sales...at this rate I'll be pulling all my ads down in another month or so and doing nothing for the rest of the year.

LOL, that would never happen papatooney. Paypal is going to generate 1099s with a computer, there not going to audit your ebay account and contrast and compare your sales. If you have one paypal account with a ss# and another paypal acct with a different ss#, there is no way they can group that together. Even if you were married filing jointly, I still have a hard time believing that would happen.

I think Ebay should deduct all your commission, listing fees, paypal fees and postage fees before factoring sales. Ebay/paypal is making at least 15%. Post office is eating about 10%. That's another $5K right there.

It could be that they look at splitting an existing account differently. Our accounts were always seperate and previously at different addresses. Did you tell him the husband and wife have seperate PayPal accounts?

I read through all the stuff I could find online and this thread, but still have some questions.

I'm a pretty big collector of video game, comics, anime, toys, etc. (all the dorky things) and usually buy quite a bit and sell off extras, dupes, etc. to break even. I also completely downsized my personal blu-ray, dvd and VHS collection (probably like 4 or 5 thousand in sales right there).

I just looked at my paypal account for the year and I just went over the 20,000 mark (including the 4K and shipping for the post office).

Now this isn't a business, just a hobby and a way for me to increase my collection without hopefully going into the poor house. My usual goal when I buy stuff is to *hopefully* break even or maybe if I'm lucky make a few bucks after keeping what I want out of it. My own collection of stuff was sold at a massive loss (why did I pay 25 bucks a pop for DVDs back in high school?) but it is going to be counted as income? What about the times I take a massive loss when I buy stuff. Get some rare games I don't have, but spend a few 100 on each of them and after selling the ones I don't want am still down 700 or something?

I'm definitely going to have to go to someone this year I assume (I usually just do it myself with turbo tax), but I was wondering if I should expect to be crucified coming January when I try to do my taxes. For the stuff I bought from people (their collections, etc.) it is only cash dealings. I have some e-mails back and forth, but no receipts, etc.

May have been covered, whats the best way to see how much in sales I have done this year?

I got my log from paypal. I totalled my express checkout payments received, and the mobile express payments. Is this the best way to do it. What about refunds or shipping costs, do I need to subtract those? Are all these payment from ebay? I've received some non-ebay related payments. I'm up to almost $16K totalling these two types, trying to stay under the $20K as I have not been keeping any sort of records.

How does PayPal figure out the cost basis? You may be selling for a.loss.

That's your job.

That's my point dude.. what is PayPal going to report if they don't know the cost basis.

It's called a 1099-K.

Here's a write-up on Amazon.

http://www.amazon.com/gp/help/cus...=200663310

so when ppl say 200 transactions they mean only money that is put into a persons paypal account not money going out (or in other words, just items sold)? is that correct?
for example if i've had a total of 300 transactions but 196 of those are me buying something and the other 104 is selling then I wont need a 1099k.

so to be clear i can go to paypal, login, view history, and use payments recieved filters and then if theres less than 200 transactions or less than 20,000 in net amounts then I am safe?

delete

Probably an opportunity to clarify this question now that the 2012 1099-K are officially out by Paypal.

I need help with the 1099-K!!

How can I claim the expenses for each transaction? For example, shipping cost, eBay fees, PayPal fees, and cost of good.

Did you document mileage for picking up and shipping goods, any associated tolls? Bigger question, did you document your purchase and sales, cause if not, then you have to backtrack 2012 and do A LOT of estimates, especially if you don't have receipts. You don't want to raise any red flags and you don't want to have to overpay if you don't have too.

Get an accountant.

Everything depends on how you paid, and what proof you kept.

I can certainly see why the gov has done the whole 1099k thing, the number of people selling and not reporting seems huge.

which means bigger potentials for audit

I go to my Amazon Account, Click "Report Tab" and it said.
"According to our records, your seller account did not meet both of the Form 1099-K threshold requirements of $20k of unadjusted gross sales and 200 transactions. No Form 1099-K is available"
Do I need to report my income from Amazon? In the whole 2012 I didn't meet the thresholds, My sale is under 20k$ and under 200 transaction.

Get yourself a real accountant. I wouldn't trust H&R block for anything except doing basic tax where someone has a job and no other income. Check out a CPA in your area.

Thats the plan, have a meeting with one this week.

Do I need the Premier or the Home Business version?

If I received a 1099-k for selling too much on ebay, do I need the Premier or the Home Business version?

You want the home business version.
http://turbotax.intuit.com/personal-taxes/

Even if I have a day-time job and ebay is just my part-time? That's still considered a business?

This person say deluxe works too...

https://ttlc.intuit.com/questions...rmation-at

Even as part time, its still considered a business. Business may have more questions to unlock deductions and other items related to running a business on the side vs deluxe, used when you have a regular job working for someone else. I just think you'll miss certain items using deluxe but someone else, maybe a CPA, can chime in.

I sell on Ebay and another site. The other site provides me with my total gross sales for 2012. Where can I get this data on Ebay. They say you can get it from Paypal but all of my Paypal transactions are just one big long list that include sales from both the other site and Ebay. I need a total for just Ebay

I've skimmed through this thread, and what I've read, it looks like I am supposed to report my ebay sales on my taxes using a schedule c. Does this sound right?

Also, I've read a few things about charging sales tax on purchases shipped to your own state. Does anyone know what the rules are on this, or do this / how to do this? It seems kind of stupid to go through all of the work since it won't amount to much money at all.

You report you net profit, after deductions, etc on your 1040, if you are doing a regular filing.

Yes, you are "suppose" to collect tax if you ship items within your state. Im now completely sure on how that works if you already paid tax on the item that is shipped within the state vs if someone had a tax exempt card and did not pay tax on the item and suppose to charge tax on the sale of the item.

In general, it may be in your best interest to hire a CPA so not to cause any red flags. IRS gave a pass to folks with1099-K for 2011 taxes, but for 2012, doubtful that they will allow it again with all of last year to get things right.

there is an ebay app called sales report plus that you can add to your ebay account which will give you such details. I think it only works though from the time you add it to your account, and does not go back to previous months, but I may be wrong.

I actually didn't receive a 1099-k, since I didn't sell enough, but I figure I'll report the taxes since I am technically supposed to. It seems like overkill to hire a CPA and go through all of that trouble when I didn't make all that much.

And can I just fill this stuff out on my 1040 (line 21?)? I thought it went on a schedule c.

If you didn't do a lot of sales and didn't get a 1099-K, then Paypal didn't report your gross income, so you could choose not to report any profit from it at all. Your sales could be deemed hobby selling, if it doesn't support you and its a secondary source of income. If anything, a CPA who has worked with ebay traders are vey good at answering these type of questions.

I would definitely classify it as hobby income. I only do it for fun, and don't rely on the income at all. How much would a CPA cost?

CPA probably ranges from $100 - $170 per hour. The more organized you are, the less time they will need to get your affairs in order, if you decide to go that route.

I have a question want to verify. My employer isnt computer savvy and he wants me to list a bunch of USB cables for him so the simple questions you need to sell over $20,000 and 200 items to get a 1099 form? Say I sell over 200 items yet overall I made $10,000 no 1099?

have him make a ebay account and you use it to sell his stuff.

A little late to the conversation but I wanted to add my experience. I made just under 200 transactions on eBay and about $14,000 in sales. Thought I was in the clear. I have a separate Paypal account I use for payment on consulting work I do for other businesses. Between the 2 accounts I went over 200 and 20K. I received two separate 1099's. So in short, it's not only sales that count towards your total, it's any payment, gift, Mass Pay, or any other type of transaction handled via Paypal and having separate accounts with the same social does not help.

Since I have Ebay and knows I "use to" sell (I told him ur not gona get much with the fees and the competition but seems pretty hard headed) he wants me to do it which I don't feel comfortable with the whole 1099. I was also thinking of telling him to give me his Paypal so the funds would go to his account.

I would set up a new account for him with all of his information, both eBay and PayPal. Much easier to deal with since if you used your own account you would have to calculate fee's, shipping cost, and the possibility of returns and or chargebacks (rare but they do happen).

Very truth I will tell him that I also don't want to do math and fees and all this I rather have him receive all the funds much easier thanks.

When will I receive the 1099 form from ebay/PayPal if in case I was eligible for that? Thanks

they have already been sent out, and available in your Paypal account.

Anyone know if the IRS can change the guidelines for this at random? My concern is the end of 2013 comes along and the IRS says ok now your going to get a 1099 for 50 Sales and 10K in revenue for 2013.

Yes and they dont count refunds or anything. I sold over $400k this year so im getting hit hard this tax year. FYI, if you have 2 paypal accounts and put in your SSN at both of them, that will combine them also.

EDIT: Didnt see your note there at the end for SSN. The idea would be to not enter your social on the 2nd account.

Going to try and set up an account right now with no social.

Thank You

In order to get fully verified and no limits. You need a credit card attached as well as a bank account. Both of which have to be different from your original account.

For now I am going to add a bank account. I get paid via Paypal Gift every week. Going to try next week and see if it allows me to accept the payment.

Thanks for all the tips everyone :woot:

So you have to have an EIN to show you truly have a business account and a personal account, otherwise, even more work to how much of that 400K is profit. What a PAIN, but good to know. I always thought that two separate accounts was good enough to separate business and personal funds.

I only had one business account this year and its one hell of a time figuring out all this. I sold personal stuff in there as well so I had to go through every transaction and figure out what was personal. Paypal sends the 1099-k to the IRS but they dont necessarily use the exact # given since they know some accounts will have personal transactions in there.

this is why you got to keep track of your expenses as you go, it makes tax time a hell of a lot easier.

Is it $20k AND 200 transactions

OR

$20k OR 200 transactions.

$20k AND 200 transactions

oh that is relief. +4

Does anybody know the limit will be the same for 2013 calender year? $20k AND 200 transactions?
TIA

as far as i know, it is the same. amazon has the same reporting policy

you know you should pay your taxes even if you did 1 transaction for $50 right? not receiving a 1099 does not mean you don't have to pay your taxes. just saying.

Finally got that done. Thank you so much. Rep Sent

So if I sell $25,000 worth of stuff and only have 50 transactions, I would be safe?

according to Mathfalted you would be safe.

No you still pay taxes and watch the money disappear to the gov.

Sent from the official Slickdeals App for iPhone & iPod Touch.

It's you pay taxes on whatever you made and watch money vanish.

Sent from the official Slickdeals App for iPhone & iPod Touch.

The limit of how much money vanishes when you pay taxes in whatever you sell?

Sent from the official Slickdeals App for iPhone & iPod Touch.

Just as a FYI, if you didn't file your 2011 1099-K from Paypal in your 2012 taxes, you may be getting a letter.

Man. I am selling my game collection this year (something I didn't intend on selling and will generate tens of thousands of dollars, especially when shipping is added to that total) so I'm really sort of stressed about how I'm going to calculate the amount I should pay in taxes next year. Guess I'm just gonna have to take a best guess at it.

Paypal provides various reports that you can use to do your tax calculations.

Monthly financial summary
Annual financial summary
1099-K Reconcilation
Custom reports by date range with choices to include/exclude data.

hey GDO, were you able to get up to speed on the 1099-K for this year?

hey - nah, not this year as didn't make enough in the past year :D

but for the upcoming year, I surely wud be getting the 1099 ;)

ps: on a sidenote, I didn't mind getting the 1099 for the last yr as it got pretty good return considering a lot of stuff was taken as *business* expense ;) I used a tax consultant to file it last yr to help and it worked great!

Really, do tell, would like to know ALL business expenses that are being used, or can/should be used. Don't want to give the government more than what they want to take :shake:

what if using somebody else's ssn and set up a new paypal and linked to the same ebay account? will both paypal account gets the 1099? TIA.

I don't think eBay allows you to link multiple Paypal accounts. However, you can have one paypal account linked to eBay and use another Paypal email address where payments are received on listings. So JoeSmith@paypal can be the account linked to eBay, but JodySmith@paypal can be the payment address used on the listing. eBay will recognized if JodySmith is an acceptable account and send payments for purchases there.

Thanks for your reply. so what you are saying is I can completely remove the old paypal account that linked the ebay account, and use somebody else's ssn to set up a new paypal account to receive payment, in that way I can avoid the 1099? Or the 1099 is issue anyway according to the ebay account? thanks again

Does anyone know which figure in the Annual Summary that Paypal/Ebay reports? There's a figure for Total Payments received (and by the way, does this include gift payments?) and one without the refunds that were issued. Very small difference in the figures for me, but it would be nice to know which one they report on.

And thanks for the headsup BlackBlaze!

What does the letter say?

Do people get seller's permits before selling on ebay? I thought that was only for stores. I was shocked to find out that in California, people are supposed to get a seller's permit period. Even for yard and garage sales.

Does anyone know if they are still counting non sale incoming payments in the dollar and transaction amounts? Such as cashback payments - one site alone deposits $ once a month, so that's 12 transactions and up to thousands just for that site. I assume they want you to put it as income and pay taxes on it.

site name?

You could try using the 1099 Recon report they have, which gives you the transaction breakdown on what is reported on the 1099. Also, it would be good to download a custom annual summary, which you would do under download history and create a custom time frame. This gives you a breakdown of fees charged, like chargeback, etc.

I would mark those as personal payments vs business payments.