You just need to report your full income from eBay sales before fees and taxes and then you can deduct the $621 as Sales Tax Expense.
To add the expense to your 1099-K activity you can follow these steps:
- Within your tax return use the magnifying glass icon to search for Schedule C
- Click the Jump to link
- Click Edit for the line of work
- Scroll down and click Add expenses for this work
- Scroll down to the Less Common section and click the dropdown icon
- Scroll down and through the pages to the Taxes and licenses section and check the box
- Click Continue
- Click the Start button for the expenses you need to enter
Also, see What self-employed expenses can I deduct? for other expenses you may be able to deduct.
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