Get your taxes done using TurboTax

Yes, that is not income, rather you would expense that as shipping costs if the shipping amounts are included in your total receipts from Mercari.  You are not required to report income you did not receive.

If this is a business all income and expense would be entered on Schedule C.  If this is a hobby the income is reported as other income directly on the Form 1040.  Be prepared with the detail to show you didn't actually receive the shipping fees that were allocated to you when the income was reported.

• Where to I enter Schedule C?

Please follow the instructions below to report Other Income:

1. Click Federal Taxes -> Wages & Income and scroll down to Less Common Income
2. Go to the last selection, Miscellaneous Income and click Start
3. Go to the last option, Other reportable income and click Start
4. When it asks, "Any other reportable income?" > yes and then type in a description and the amount to report it on your tax return.
5. TurboTax Online and TurboTax CD/Download will use the same procedure