Hello,
I am hoping someone can help me as I am having a hard time searching for the answer. I appreciate any help and feedback and apologize if this has been already answered previously.
I have not received a 1099 K from Paypal for 2020 and this is my first time reporting using the business income(schedule C) on TT for my spouse. The total sold has exceeded $400 so I want to make sure it is reported. My questions are the following:
1. Under TT Home & Business: Business income income do I enter the gross income under "General Income" Description: "Ebay"?
2. The amount I list for the general income, would it be the gross amount which is the amount received from paypal MINUS the sales tax? Or does it include the sales tax. This is confusing to me because Paypal breaks down for each transaction the sales tax cancels when ebay deducts it before the payout amount. So for example: The purchase total of one t-shirt is $30.00 + tax $1.10= $31.10 but after the Ebay fees of $1.00 plus sales tax $1.10 the total payout comes to $29.00. So would I be reporting $31.10 or $30.00 or $29.00?
3. On Cost of purchases(Cost of goods sold), Would I include the total amount including the sales tax I paid on that line? Also, I got to this cost of purchases portion from saying "yes" i have inventory to report but I am not going to put a value on my end of 2020 inventory.
I also live in AZ so I don't know how the sales tax play out unless it automatically is factored in the software?
Thank you again for taking the time to review my question and answer them!
