Get your taxes done using TurboTax

If you are a one-time or casual seller on eBay then you are not a business and Schedule C Profit or loss from Business is not an option to report your sales on eBay.

To report your 1099-K from eBay and your cost of goods sold (COGS) in TurboTax follow these steps:

1. Log in to your TurboTax account if it is not open.
2. Select the Wages & Income tab.
3. Scroll down to Less common income click Show more.
4. On the page Let's Work on Any Miscellaneous Income click on Other reportable income.
5. On the page Any Other Taxable Income?  select yes.
6. On the page, Other Taxable Income enter eBay 1099-K for the description and the amount.
7. Select continue and answer No on the next page.

Next, you will have to report your COGS.  Follow these steps to report your COGS:

1. Log in to your TurboTax account if it is not open.
2. Select the Wages & Income tab.
3. Scroll down to Less common income click Show more.
4. On the page Let's Work on Any Miscellaneous Income click on Other reportable income.
5. On the page Any Other Taxable Income?  select yes.
6. On the page, Other Taxable Income enter eBay 1099-K COGS for the description and the cost of the items sold as a - amount for example  -1,200.
7. Select continue and answer No on the next page.

This process will report your gross income reported to you on the 1099-K in the first entry and then "back-out" your  COGS in the second entry.  As you are aware this is the first year of the new filing requirements for Form 1099-K and there is no one single step to report the sale and COGS if you are not a business.