I received a 1099-K from eBay but I'm not a business owner, I just sold one electronic item that I didn't need anymore. Do I need to file with the IRS?

[ColeenD3]

Yes. You have to report all your income. Please see this answer from PattiF.

This can be reported as the sale of items not associated with a business so this won't be considered as self-employment income

In order to do that you can either report it as investment income or other miscellaneous income. Make sure to include expenses of the sales and the original cost of the items.

For reporting Form 1009-K for personal items sold not associated with a trade or business, you can report this as Miscellaneous income.

• From the left menu, go to Federal and select the first tab, Wages & Income
• Add more income by scrolling down to the last option, Less Common Income, and Show more
• Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
• Choose the last option, Other reportable income and Start and Yes
• Enter the applicable description and amount and Continue
  • First, enter Form 1099-K as received. It is essential that the full amount be entered.

[scorn07]

I'm really confused because I'm seeing conflicting answers all over this website. Some say I don't need to report because it was sold at a loss and isn't part of my business/occupation. Then I see other answers that say I need to report but that may generate taxable income, which there shouldn't be. And there are yet other answers that say I need to enter a positive amount and a negative amount to show a loss. So who is right?

[scorn07]

I just can't possibly believe this is correct? If I put in the amount from the 1099-K and then enter a negative line for the cost of the item (only a year and a half old) + fees/expenses, it's saying I'm owed a refund from federal and state of $150. I read a post that someone tried this method because several people on this community website told him to, and then the IRS came back and said he reported it incorrectly and owed tax even though he sold at a loss.

[MinhT1]

If you receive this form 1099-K for selling a used electronic item you no longer need on Ebay, you most probably sold this item for less than you paid for them. You have made a loss on personal items. This loss on personal items is not deductible and is not reported on your tax return.

If this is the case, you do not need to report this form 1099-K on your tax return. Just keep it in your tax records along with any proof that it was for the sale of the electronic item.

Please read this TurboTax Help topic for more information.

[scorn07]

See this is why I am confused. MinhT1 you are saying one thing and ColeenD3 is saying another. Who is right? At this point I already filed my tax return so I need to know whether I need to amend. To me it seems ridiculous that I would have to amend my return that would ultimately show no change in tax.

[ColeenD3]

There is no one answer to the 1099-K problem. Everyone's situation is a little different. However, if you fail to enter income of any type, other than what is expressly excluded, you will hear from the IRS. A very important aspect is did you sell the items for a gain or a loss.

There are so many permutations to this. These are just some of the questions regarding 1099-K.

1) Some of the things I sold pertained to a business, but some did not.

You have to separate the sales that were actually business vs those that did not. You have a hybrid situation.

 2) None was business income. I sold old things I had laying around the house. This is not a business. You must include the 1099-K but you can zero out the income since you had no profit.

3) I did this so it's kind of a business but not really. Yes. It's a business. Report on Schedule C.

4) I bought and resold but it was a one-off type of thing.  You had a sporadic activity. It is other income.

The IRS simply states this.

What should I do with this information?

It is important that your business books and records reflect your business income, including any amounts that may be reported on Form 1099-K. You must report on your income tax return all income you receive from your business. In most cases, your business income will be in the form of cash, checks, and debit/credit card payments. Business income is generally referred to as gross receipts on income tax returns. Therefore, you should consider the amounts shown on Form 1099-K, along with all other amounts received, when calculating gross receipts for your income tax return.

1099-K

[Milad2608]

I have two 1099-K forms for the same item, one from my Amazon Vine account and the other from eBay. Both of these are a part of my business, and I haven't made any profit from selling on eBay. For instance, I received an item worth $1500 from my Amazon Vine account and sold it on eBay for $1000. I have paid 15% tax based on my Amazon 1099-K. So, my question is, do I need to file a 1099-K form for the same item on eBay?

[RobertB4444]

You should report every 1099-K that you receive because - as @ColeenD3 states above - the IRS is looking for all of the income that they have had reported to them to appear on your tax return.  

In this instance you will report the income from one 1099-K as income and then the actual cost of the item that you sold as a negative.  

Then, for the other 1099-K, you would enter the income as income and an equal expense ($1000 income and a $1000 expense) as "income entered twice".  That way your actual loss matches what is shown on the return.  

@Milad2608