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  #1  
Old 11-21-2019, 02:54 PM
cardsnstuff cardsnstuff is offline
Tony
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Join Date: Apr 2016
Location: Home of the SB LII Champs
Posts: 356
Default Need Help; What is ebay doing and do I account for it

OK, let me preface I get a 1099 from paypal, I declare my income and deduct my expenses and pay taxes. So now in there infinate wisdom, ebay collects and pays sales tax for me I'm guessing. This has been going on for a while but I am trying to figure this out. Here is my latest transaction:

Purchase Total $20.00 USD
Sales Tax $1.20 USD
Shipping Amount $4.00 USD
Handling Amount $0.00 USD
Insurance Amount $0.00 USD
Gross Amount $25.20 USD
PayPal Fee -$1.03 USD
Tax collected by eBay -$1.20 USD
Net Amount $22.97 USD

1) Is my 1099 from paypal going to reflect the gross amt? My guess is yes.
2} I am not concerned that I am paying a paypal fee on the sales tax; nbd and it's an expense anyway
3) How do I account for this 1.20, which is probably going to be reported in my gross income? x # transactions/year
4}What are they doing???????????????/
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Last edited by cardsnstuff; 11-21-2019 at 03:01 PM.
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  #2  
Old 11-21-2019, 03:27 PM
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buymycards buymycards is offline
Rick McQuillan
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Join Date: May 2009
Location: Wisconsin
Posts: 3,178
Default Taxes

I spent about 20 minutes on the PayPal website, and I can't find any reports that account for the amount of sales taxes that are collected. It does show up on individual transactions.

On eBay, go to the Seller Hub and click on "Paid and Shipped Orders". Choose the time period that works for you, and then on the right side of the paid, click on "Download Report". This will bring up an Excel spreadsheet that shows all of your transactions, and there is a column for Sales Taxes collected. However, I didn't see a total, so you may have to insert a formula or manually total the column.

Hope this helps, Rick
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  #3  
Old 11-21-2019, 03:48 PM
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D. Bergin D. Bergin is online now
Dave
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Join Date: Apr 2009
Location: CT
Posts: 6,106
Default

We never actually see the sales tax, so I don't know why it would be included in the 1099. At least provide us a running tally in the reports like they do with fees so we can write it off properly, without having to go through every transaction individually.

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