@premmer said "I sold six orders of a health-related product and that is the end of my eBay selling venture"
That sounds like you were briefly (very briefly) in business and should file Schedule C.
However "All this to save $114" sounds like you just overbought something and now need to get rid of the excess. That falls into the "garage sale" category. You report the difference between what you paid for them and what you sold them for, as income. You don't get to deduct any of your expenses.
Don't get hung up on the fact that you are reporting income that is less than the amount on the 1099-K. That's just the way it is. The IRS doesn't yet have a reporting mechanism, for the details, in this situation.
Some people recommend using a workaround to report it (I wouldn't). It would work like this:
In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other reportable income
- On the next screen, click yes
- On the next screen, you'll get blanks to enter the amount and a description. It will go on line 8 of Schedule 1 as "Other Income". Suggestion for description: eBay sales on 1099K
When that's done, do it again (a 2nd entry). This time make it a negative entry; put a minus sign (-) in front of the amount. Suggestion for description: cost basis of eBay sales items.
Both entries will go on line 8z of Schedule 1. It appears the 2021 TurboTax interview does not (yet) have an entry for line 8i of Schedule 1 (Activity not engaged in for profit income)
Reply Edit (2 hours later): To get to the entry on line 8i of Schedule 1, you must enter the income as Hobby Income. But you must enter the adjusted income (1099-K amount less cost of goods sold [cost basis]). TurboTax will ask you to enter expenses, but it does nothing with the expense amount, since it is no longer deductible .
