1099K form
Terry we have been selling some of our collections, my husband’s military items & miscellaneous items on EBay. We received a 1099K form for a gross amount of $1626.01. This includes the taxes the buyer paid on the items purchased, and the postage we paid to ship. I’m confused as to why we would get this form. How different is this from a garage sale? Do we have to report this to IRS, & if so, how do we do this? Also, this doesn’t include the monthly fees we were charged by EBay & by PayPal. Thank you.
Terry Says
Well someone put you on the spot. These are usually cash transactions. You’ll have to list this as “income” then subtract costs — including postage,and ebay fees. But if you collected sales taxes on the item, you are likely obligated to remit them to your state unless it was only this small amount.
