Get your taxes done using TurboTax

It depends.  It sounds like you are not really in the business of buying and selling a product (your purchases).  If this is the case you can use the following method to report the income on your tax return.

You should select it was not your main job and there was no intent to earn money. This income will show up on Schedule 1, Line 8z.

You can view your 1040 form before you e-file:

1. Open or continue your return. (TurboTax Online)
2. With the Tax Tools menu open, you can then:
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.
3. TurboTax CD/Desktop - Select Forms (upper right) > Scroll to Schedule 1 (left) > View line 8z

In this scenario you are also allowed to make another entry to remove the cost of the products you sold or cost of goods (COGs). No other expenses would be allowed.

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 negative 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. 

Please update here if you need further assistance.

@cp12wv