Wonderful 1099-K Question

lakesidez · 02-02-2022, 07:52 AM

OK since this is the first time I received one in my life..........and I want to make sure I do things on the up and up. I am not a small business but it seems like Turbo Tax as soon as I check I have a 1099-K is lumping me into that tax form versus just a regular tax return. I bought a few collections this past year with COVID for a project and resold apparently $21,000 in cards on eBay.

Do I really need to file as a small business? How else can I claim this form on my taxes and not get dinged by the IRS?

Second sure I sold $21,000 on eBay, but I paid probably a good $12,000 throughout the year buying collections, does that matter at all? Granted they were all cash deals.........

Any guidance would be appreciated.

premium1981 · 02-02-2022, 08:00 AM

Here we go..........

You are about to get bombarded with misinformation that people are going to state as fact. You should contact your tax preparer. Don't listen to anything else other than that.

lakesidez · 02-02-2022, 08:08 AM

Quote:

Originally Posted by premium1981

Here we go..........

You are about to get bombarded with misinformation that people are going to state as fact. You should contact your tax preparer. Don't listen to anything else other than that.

LOL, that's the issue my taxes have always been super basic until now, I've never had a tax person. Guess I'll just go that route.

coachnip13 · 02-02-2022, 09:34 AM

Quote:

Originally Posted by premium1981

Here we go..........

You are about to get bombarded with misinformation that people are going to state as fact. You should contact your tax preparer. Don't listen to anything else other than that.

Because no one has any experience with businesses and taxes other than tax preparers, who are infallible.

premium1981 · 02-02-2022, 09:39 AM

Quote:

Originally Posted by coachnip13

Because no one has any experience with businesses and taxes other than tax preparers, who are infallible.

Seems like you really took offense to directing him towards a tax preparer.

monkeymcgee · 02-02-2022, 09:53 AM

Quote:

Originally Posted by premium1981

Seems like you really took offense to directing him towards a tax preparer.

If you don't know what you're doing, it's really the best option. Get the questions answered for your particular situation and maybe you don't need the preparer/CPA next time. But it's always good to get professional advice at least once or when laws change if you're not sure what to do.

premium1981 · 02-02-2022, 10:26 AM

Quote:

Originally Posted by monkeymcgee

If you don't know what you're doing, it's really the best option. Get the questions answered for your particular situation and maybe you don't need the preparer/CPA next time. But it's always good to get professional advice at least once or when laws change if you're not sure what to do.

Indeed. Anyone here can say they have a business and know what they are talking about and be 100% wrong. Either on purpose or on accident. We have seen the threads, and we know the outcome. The majority of professional tax preparers will also represent you during an audit.

coachnip13 · 02-02-2022, 11:47 AM

Quote:

Originally Posted by premium1981

Seems like you really took offense to directing him towards a tax preparer.

If that's what you took from my post, I'll assume you're not a detective.

letsgocapitals · 02-02-2022, 08:23 AM

I have a question about Paypal's 1099.

I received a 1099 for, say, $15,000. 65 transactions.

My question is, what is considered a transaction?

I downloaded my activity history for 2021. I've sorted and run pivot tables. But I haven't been able to replicate the monthly amounts they show.

I'll keep hunting for an answer. But if anyone knows, that would be awesome.

premium1981 · 02-02-2022, 09:11 AM

Quote:

Originally Posted by letsgocapitals

I have a question about Paypal's 1099.

I received a 1099 for, say, $15,000. 65 transactions.

My question is, what is considered a transaction?

I downloaded my activity history for 2021. I've sorted and run pivot tables. But I haven't been able to replicate the monthly amounts they show.

I'll keep hunting for an answer. But if anyone knows, that would be awesome.

Pretty sure it is anything that brings money into your account. The whole GS vs gift thing doesn't matter.

There will be things that some people forget about too. For example, I get monthly deposits from topcashback into my paypal for clicking through (like ebates). All of that counts. Doesn't relate just to cards. Any money coming in.

coachnip13 · 02-02-2022, 09:36 AM

Quote:

Originally Posted by premium1981

You should contact your tax preparer. Don't listen to anything else other than that.

Quote:

Originally Posted by premium1981

Pretty sure it is anything that brings money into your account.

Can't make this up.

premium1981 · 02-02-2022, 09:37 AM

Quote:

Originally Posted by coachnip13

Can't make this up.

One was about how to file hobby income reported on 1099. The other was how they generate that number. I don't use friends and family, so I am not sure if it is included or not, but would venture a guess that it is.

letsgocapitals · 02-02-2022, 09:20 AM

Quote:

Originally Posted by letsgocapitals

I have a question about Paypal's 1099.

I received a 1099 for, say, $15,000. 65 transactions.

My question is, what is considered a transaction?

I downloaded my activity history for 2021. I've sorted and run pivot tables. But I haven't been able to replicate the monthly amounts they show.

I'll keep hunting for an answer. But if anyone knows, that would be awesome.

I figured it out and will share because I think it's useful. Gym time first!

letsgocapitals · 02-02-2022, 12:20 PM

Quote:

Originally Posted by letsgocapitals

I have a question about Paypal's 1099.

I received a 1099 for, say, $15,000. 65 transactions.

My question is, what is considered a transaction?

I downloaded my activity history for 2021. I've sorted and run pivot tables. But I haven't been able to replicate the monthly amounts they show.

I'll keep hunting for an answer. But if anyone knows, that would be awesome.

General Process:

- Paypal sends you a 1099
- You have a Gross amount of payment card/third party network transactions
- It's broken out by month
- The question is, what constitutes these payments?
- Jump into Paypal. Go to the Tools (upper righthand corner tools icon).
- Go to "See More Reports" (left side of page)
- Select "Activity Download"
- Transaction Type - Balance Effecting; Date Range - Jan 1 to Dec 31, 2021; Format - CSV.
- This exports an Excel-based report with ALL of your transactions.
- Have fun with Excel...
- I created a Month column... 1-12
- From there, sort by Month and Fees. Paypal is only collecting taxes for transactions in with they collect Fees. You'll notice that Gross totals, for these transactions, adds up to what is on your 1099.

Sweet. And now that I wrote all of that up, I'm noticing that only HALF (edit - 2/3rds - not bad actually!) of these transactions actually contain notes of what you sold.

I assume we'll get 1099s with Ebay too. Last year, I downloaded an add-in that was able to pull all of my sales and download them into an Excel file. That was useful because I essentially had line items of my sales. I then added columns for what I had "in" those cards (cost of buying, grading, etc.), then profits/losses. I sent this Excel file to a tax expert, that that provided guidance via BO, and he said the spreadsheet was perfect for tax purposes.

With Paypal, unfortunately, I don't think we'll be getting that level of detail via their website. Edit - 2/3rds contained purchase notes.

longhornjunkie · 02-02-2022, 02:49 PM

Starting to drift off topic, but I keep an Excel sheet with a tab of each purchase I make across different platforms, and where a sale can be directly tied back to one of my purchases, I log it against that tab so I can see how good of a return I got from each purchase. If I can't tie it back or it's a mixed lot, I log it on a catch-all tab for the year.

I think the problem I'll end up having is that I log current-year sales against prior year purchases if it can be tied back. All the dates are there, so I can always make a new format.

I assume basically some version of the above is ok for tax record keeping purposes. Yes, I know ultimately I should contact a professional if I can't figure it all out for myself.

hairysasquatch · 02-02-2022, 05:31 PM

Paging Azzjublees

jamcas997 · 02-02-2022, 06:24 PM

This is why you need to keep your own records and not rely on ebay to keep them for you.

I have been keeping records for 12 years. It can be time consuming , but it will keep you out of trouble.

openingday · 02-04-2022, 02:32 PM

I got a 1099 from both ebay and paypal. I assume there is some overlap between the two. Is there an easy way to look into for comparison?

jamcas997 · 02-04-2022, 04:32 PM

Quote:

Originally Posted by openingday

I got a 1099 from both ebay and paypal. I assume there is some overlap between the two. Is there an easy way to look into for comparison?

When I got mine last year there was no overlap as my switch happened in August with 35 items going paypal and 350 to ebay at the switch to MP. I also keep my own records and had the month split .

Swipe79 · 02-04-2022, 04:45 PM

NM - Found the answer here:

https://www.ebay.com/help/selling/fe...-1099k?id=4794

The 1099-K is truly a gross amount and does not include fees.

Rabs · 02-06-2022, 11:18 PM

Quote:

Originally Posted by Swipe79

NM - Found the answer here:

https://www.ebay.com/help/selling/fe...-1099k?id=4794

The 1099-K is truly a gross amount and does not include fees.

Useful link thank you.

shayscards79 · 02-07-2022, 03:33 PM

Any of you guys get an email from eBay saying they erroneously sent a 1099? I did for like $800 in transactions and they're only supposed to send you one if hit hit the threshold for 2021.

So it makes sense

tribefan26 · 02-08-2022, 11:48 AM

Quote:

Originally Posted by shayscards79

Any of you guys get an email from eBay saying they erroneously sent a 1099? I did for like $800 in transactions and they're only supposed to send you one if hit hit the threshold for 2021.

So it makes sense

I received the same notification- there are some states with lower thresholds and I think they confused those.

kmnorton · 02-07-2022, 08:07 PM

I got a 1099 with $19K in sales and 150 transactions. I purposefully came under the threshold to avoid this as I want to move away from EBay. Kind of pissed because I sold for others last year.

Chaddie84 · 02-08-2022, 03:02 PM

Got to the $600 trigger today. I guess it's back to the good old days of receipt tracking like back when I actually sold a significant amount of goods and reported net-profits. It's been a while.

I'm really curious how I can keep helping out friends and co-workers sell their stuff online. I suppose I'll need to keep track of checks I give them. Super lame considering most of this is used stuff they've already paid more for in the first place.

02-02-2022, 07:52 AM	#1
lakesidez Member Join Date: May 2010 Location: Wisconsin Posts: 6,747	Wonderful 1099-K Question OK since this is the first time I received one in my life..........and I want to make sure I do things on the up and up. I am not a small business but it seems like Turbo Tax as soon as I check I have a 1099-K is lumping me into that tax form versus just a regular tax return. I bought a few collections this past year with COVID for a project and resold apparently $21,000 in cards on eBay. Do I really need to file as a small business? How else can I claim this form on my taxes and not get dinged by the IRS? Second sure I sold $21,000 on eBay, but I paid probably a good $12,000 throughout the year buying collections, does that matter at all? Granted they were all cash deals......... Any guidance would be appreciated. __________________ Twitter @sportscardguys My collection: https://flic.kr/s/aHBqjAowdx

02-02-2022, 08:23 AM	#9
letsgocapitals Member Join Date: Oct 2010 Location: Southern Maryland Posts: 3,369 letsgocapitals	I have a question about Paypal's 1099. I received a 1099 for, say, $15,000. 65 transactions. My question is, what is considered a transaction? I downloaded my activity history for 2021. I've sorted and run pivot tables. But I haven't been able to replicate the monthly amounts they show. I'll keep hunting for an answer. But if anyone knows, that would be awesome. __________________ Facebook - https://www.facebook.com/southernmaryland.sportscards.5

02-02-2022, 02:49 PM	#15
longhornjunkie Member Join Date: Sep 2012 Location: Rowlett, TX Posts: 4,609 longhornjunkie	Starting to drift off topic, but I keep an Excel sheet with a tab of each purchase I make across different platforms, and where a sale can be directly tied back to one of my purchases, I log it against that tab so I can see how good of a return I got from each purchase. If I can't tie it back or it's a mixed lot, I log it on a catch-all tab for the year. I think the problem I'll end up having is that I log current-year sales against prior year purchases if it can be tied back. All the dates are there, so I can always make a new format. I assume basically some version of the above is ok for tax record keeping purposes. Yes, I know ultimately I should contact a professional if I can't figure it all out for myself. __________________ Collecting Longhorns RCs 1999-2005 FB/BKB https://sites.google.com/view/longhornjunkie/home Running Card Show (Cards FS) - http://bit.ly/longhornjunkie

02-02-2022, 05:31 PM	#16
hairysasquatch Member Join Date: Dec 2008 Location: In the Woods, Central NY Posts: 36,140	Paging Azzjublees __________________ I am going signature-free

02-04-2022, 04:45 PM	#20
Swipe79 Member Join Date: May 2010 Location: Vancouver, WA Posts: 13,162 Swipe79 XFactor	NM - Found the answer here: https://www.ebay.com/help/selling/fe...-1099k?id=4794 The 1099-K is truly a gross amount and does not include fees. __________________ Have a nice day! Last edited by Swipe79; 02-04-2022 at 05:26 PM.

02-02-2022, 08:00 AM	#2
premium1981 Member Join Date: Oct 2007 Location: North Carolina Posts: 11,385	Here we go.......... You are about to get bombarded with misinformation that people are going to state as fact. You should contact your tax preparer. Don't listen to anything else other than that.

02-02-2022, 06:24 PM	#17
jamcas997 Member Join Date: Apr 2012 Location: Virginia Beach Posts: 5,631	This is why you need to keep your own records and not rely on ebay to keep them for you. I have been keeping records for 12 years. It can be time consuming , but it will keep you out of trouble.

02-04-2022, 02:32 PM	#18
openingday Member Join Date: Apr 2021 Posts: 10	I got a 1099 from both ebay and paypal. I assume there is some overlap between the two. Is there an easy way to look into for comparison?

02-07-2022, 03:33 PM	#22
shayscards79 Member Join Date: Oct 2012 Location: San Diego Posts: 3,876 shayscards79	Any of you guys get an email from eBay saying they erroneously sent a 1099? I did for like $800 in transactions and they're only supposed to send you one if hit hit the threshold for 2021. So it makes sense __________________ Cubs and Colts fan!!! Collecting all vintage stars... especially Ernie Banks Collecting any and all Indianapolis Colts cards

02-07-2022, 08:07 PM	#24
kmnorton Member Join Date: Jan 2008 Location: Alameda, CA Posts: 317 sfnorton	I got a 1099 with $19K in sales and 150 transactions. I purposefully came under the threshold to avoid this as I want to move away from EBay. Kind of pissed because I sold for others last year.

02-08-2022, 03:02 PM	#25
Chaddie84 Member Join Date: Jul 2010 Location: Fargo, ND Posts: 8,828 Chaddie84 Chaddie84	Got to the $600 trigger today. I guess it's back to the good old days of receipt tracking like back when I actually sold a significant amount of goods and reported net-profits. It's been a while. I'm really curious how I can keep helping out friends and co-workers sell their stuff online. I suppose I'll need to keep track of checks I give them. Super lame considering most of this is used stuff they've already paid more for in the first place. __________________ SKOL! Go Bison!