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How should I report my wife's income from Poshmark sales on a Schedule C?

My wife sells used items via Poshmark for a profit. Since the earnings are reportable income, we're attaching a Schedule C with our return. My understanding of Poshmark's transaction system is as follows:

1. Seller chooses a selling price and lists item.

2. Poshmark allows buyer to purchase at listed price and charges a shipping fee (unknown to seller).

3. Poshmark receives buyer's payment (including shipping charges), pays actual shipping cost, retains a commission on selling price, and credits remaining amount to seller's account.

The seller can see the payments received in her account to determine a total net profit. However, the gross sale amounts, shipping charges, and commissions taken on each sale aren't found in her account history.

Can the payments that Poshmark has made to my wife's account be listed in the "Gross receipts or sales" box of Schedule C, or would we be required to determine the actual gross sales and deduct shipping charges and Poshmark commissions?

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2 Replies
IreneS
Intuit Alumni

How should I report my wife's income from Poshmark sales on a Schedule C?

You can use the net figure provided by Poshmark.for income--enter it as Additional Income. Then deduct any expenses other than those already deducted by Poshmark.

To enter your income, please follow these steps:

  1. On the Your 2017 self-employed work summary screen, click on Edit next to your business.  [See Screenshot #1, below.]
  2. On the Here's your [business] info screen, click on the box Add income for this work[Screenshot #2]
  3. On the next screen, Let's get any additional income, mark the button for Additional income, etc. and click the Continue box.  [Screenshot #3]
  4. Continue through the screens, entering your business income.

To enter your expenses, please follow these steps:

  1. On the Here's your [business] info screen, click on the box Add expenses for this work[Screenshot #4]
  2. On the Tell us about any expenses screen, scroll down through the categories, marking the appropriate radio buttons and click Continue at the bottom of the screen. 
  3. Turbo Tax will take you through the different categories to enter your expenses.




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How should I report my wife's income from Poshmark sales on a Schedule C?

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