Do the eBay 1099-Ks include sales tax collected? 1 1

[pkveronese]

I know they include shipping and eBay fees, but what about sales tax collected?

[Tnexus]

It should not. Mine did not at least.

[jsilverjanet]

On 2/8/2022 at 1:35 PM, pkveronese said:

I know they include shipping and eBay fees, but what about sales tax collected?

I believe it would only include it, if you set up your account to collect the tax. 

Otherwise the default is that those taxes collected by eBay will be handled by them appropriately.

 

[Lightning55]

Sales Tax is not included on my 1099-K, just product sales and shipping charged.  I don't know if that's universal, or it goes by what state you are in.

EBay 1099-k documents do not include eBay fees.  Those are expenses that you can deduct from your sales on a Schedule C or equivalent. 

The 1099-k Detail that you can download per month includes itemized columns entitled "Ebay collected tax", "Transaction fee total" and "Order total". 

On my detail, Order total includes the product sale amount plus the shipping charged, no other amounts.  The total of all entries in the Order total column matches the monthly number on my 1099-K.

[70s80sTimeMachine]

On 2/8/2022 at 8:23 PM, Lightning55 said:

Sales Tax is not included on my 1099-K, just product sales and shipping charged.  I don't know if that's universal, or it goes by what state you are in.

EBay 1099-k documents do not include eBay fees.  Those are expenses that you can deduct from your sales on a Schedule C or equivalent. 

The 1099-k Detail that you can download per month includes itemized columns entitled "Ebay collected tax", "Transaction fee total" and "Order total". 

On my detail, Order total includes the product sale amount plus the shipping charged, no other amounts.  The total of all entries in the Order total column matches the monthly number on my 1099-K.

This is a big remaining benefit of eBay; that is they collect the sales tax and for the average individual/collector, you won't see this on your 1099-K nor have to deal with it.

Here is a question - 

If you are an individual or collector

You are not a business i.e. you are not incorporated nor do you have a business sales tax license

You do not carry inventory historically on a Schedule C

You didn't receive a 1099-K but want to still report on Schedule C transactions of comics you sold say on instagram or Facebook, etc. In these instances is the onus solely on the buyer to claim/pay the sales tax upon filing their annual taxes or does the seller still have an obligation to collect sales tax because a Schedule C was filed and the defacto sole proprietorship classification was activated? 

Edited February 9, 2022 by 70s80sTimeMachine

[littledoom]

On 2/8/2022 at 11:35 AM, pkveronese said:

I know they include shipping and eBay fees, but what about sales tax collected?

Yes, I called them and it does. It includes everything except returns/refunded transactions

Edited February 9, 2022 by littledoom

[shadroch]

On 2/9/2022 at 8:14 AM, 70s80sTimeMachine said:

This is a big remaining benefit of eBay; that is they collect the sales tax and for the average individual/collector, you won't see this on your 1099-K nor have to deal with it.

Here is a question - 

If you are an individual or collector

You are not a business i.e. you are not incorporated nor do you have a business sales tax license

You do not carry inventory historically on a Schedule C

You didn't receive a 1099-K but want to still report on Schedule C transactions of comics you sold say on instagram or Facebook, etc. In these instances is the onus solely on the buyer to claim/pay the sales tax upon filing their annual taxes or does the seller still have an obligation to collect sales tax because a Schedule C was filed and the defacto sole proprietorship classification was activated? 

Income tax and sales tax are two different things and are usually handled by different deparments, if not different agencies.  The person/machine handling one won't care about the other.  If you say you sold $1,000 worth of books, they have no way of knowing if they were sold in state or out of state.

[70s80sTimeMachine]

On 2/9/2022 at 11:40 AM, shadroch said:

Income tax and sales tax are two different things and are usually handled by different deparments, if not different agencies.  The person/machine handling one won't care about the other.  If you say you sold $1,000 worth of books, they have no way of knowing if they were sold in state or out of state.

I should have specified; when they file their state tax. I thought I read a long winded twitter thread where folks said in TurboTax, there is a question in the state taxes interview asking you, as an individual/buyer if you have any purchases to declare. I thought the implication would be sales tax.

What's complex is, say you sell a book to someone in a different state via Instagram and Facebook correspondence. You ship the book to them and obviously you have no presence physically in the state and in the form of an individual; you are not a business entity with no business sales tax license; I was trying to clarify if there is still any onus on you as the seller with respect to collecting sales tax in the event you filed a Schedule C without receiving a 1099-K since you don't have the likes of an Ebay who collects the sales tax for you.

Edited February 9, 2022 by 70s80sTimeMachine

[shadroch]

I'm  not an expert, nor do I stay in Holiday Inns but it seems the onus is on the buyer.  On the other hand, if you are selling stuff on a regular basis, why not get a business license? They are a good thing to have. You might be surprised the doors that open when you have one.

[Lightning55]

On 2/9/2022 at 11:33 AM, littledoom said:

Yes, I called them and it does. It includes everything except returns/refunded transactions

The 1099-K Statement that you receive contains only product sales and shipping collected.  Nothing else.  This is what gets reported to state and federal tax authorities, and represents the gross sales for the year.

The 1099-K Detail Report has more info like the actual product sold, the buyer info, etc.  The numeric columns on that Detail Report include "Ebay collected tax", "Transaction fee total" and "Order total".

If you don't specify which you are talking about, it's easy to cause confusion.