topic eBay and paypal 1099-K for eBay and paypal resellers - how to enter income / expenses into turbo tax ? in Get your taxes done using TurboTax

eBay and paypal 1099-K for eBay and paypal resellers - how to enter income / expenses into turbo tax ?

zombitroid — Sun, 26 Jan 2025 18:04:14 GMT

I have a reselling business on eBay and on an external site through paypal. I gross maybe $30K or $40K / year in revenue, minus reselling expenses

I know what my total profit was for 2024, and my total expenses were for the whole business (not for each individual site - but that information is calculatable but I would need to spend hours doing it )

how do I report my expenses / total profits if I only know the totals for 2024? and how do I better track expenses / revenue in preparation for my 2025 taxes and 1099Ks ?? This is my first year dealing with the 1099-K situation

I don't have an excel spreadsheet totaling up the total shipping costs for the year along with any other fees. That is just so much work and copy -> pasting to document. There are a lot of expenses associated with reselling - platform fees ( ebay / paypal charge selling fees ), shipping labels ( USPS ), shipping materials, original cost of the products. I sell hundreds or thousands of products per year so I don't have all the individual prices of each product sold.

How can I easily enter in my 1099-K income and then deduct the total expenses ( I have totaled for the year ) into turbo tax 2024 against the 1099-K income in turbo tax? Is there a way I can enter in the number I calculated for the profits of my business into turbo tax? PLEASE HELP! I'm considering stopping reselling because this is such a nightmare. Or hiring an accountant to do it all for me which substantially eats away at my profits ( which are already really, really slim - I work HARD for my money )

Re: eBay and paypal 1099-K for eBay and paypal resellers - how to enter income / expenses into tu...

JamesG1 — Tue, 28 Jan 2025 01:51:35 GMT

Are you saying that you will be receiving two 1099-K forms? One from ebay and one from paypal?

It sounds like you are reporting self-employment income for the IRS form 1099-K activity. Or maybe there are two self-employment activities? One from ebay and one from paypal?

In TurboTax Premium, you would establish one (or two?) self-employment activities under Federal / Wages & Income / Self-employment income and expense.

If you ran your costs through Inventory, at year-end you would report the Cost of Sales for your product and may reflect a balance in unsold product Inventory.

Re: eBay and paypal 1099-K for eBay and paypal resellers - how to enter income / expenses into tu...

zombitroid — Tue, 28 Jan 2025 06:21:40 GMT

Yes, I will get an eBay 1099-K and a paypal 1099-K. I run my reselling business across multiple sites but I consider it all to be one business, but that is why i get multiple 1099-Ks

I enter those into turbo tax when it asks for them under my business income and I keep both the 1099-Ks under the same business ( which turbo tax allows me to do ). But the problem is that it asks for the 1099-K information ( so I enter in both of the 1099-Ks, which have income on them ( not net of any expenses ) ) and then a few pages later on the same turbo tax topic, it asks me what my income for the business was?!! And its like.. well I just entered the 1099-Ks so there is the revenue, now let me enter the expenses!

It shouldn't be asking me to enter income after I've already entered the 1099-K income.. so maybe I should just leave those fields blank? and just enter the expenses?? please help

Re: eBay and paypal 1099-K for eBay and paypal resellers - how to enter income / expenses into tu...

JamesG1 — Tue, 28 Jan 2025 15:24:20 GMT

You are reporting one self-employment activity with a revenue stream from ebay and a revenue stream from paypal. Both revenue streams are reported on an IRS form 1099-K. If I understand you correctly, you will not be adding any other revenue stream.

You can move on to reporting your business-related expenses. In TurboTax Online, under Self-employment income and expenses, select Add expenses for this work if you do not see expense categories that apply to your business activity.

Use categories that make sense to you and relate back to the categories that you are capturing on a daily basis.