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3429555
Level 1

Filing when selling on EBay.

My husband and I file our taxes jointly.  We both sell items on EBay under separate EBay accounts, and I'm sure we will be getting separate 1099's from EBay for 2022 taxes.  We are selling items that we have owned or collected over the years and are trying to downsize (big collection).  1.)  What form do we use to report this EBay income???     2.) Do we each have to do the form separately since we will be getting two 1099's or do we combine the EBay income on one tax form, whatever form that may be???

2 Replies
CatherineR
Employee Tax Expert

Filing when selling on EBay.

In 2022, companies such as Zelle, PayPal, Square, Stripe, Venmo, and others will be sending you a 1099-K if you receive more than $600 in payments during the year.   If you each receive a 1099K reported under each of your social security numbers you will prepare a schedule C for each of you.  Here is a great resource article to discuss reporting business income:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/-what-is-a-schedule-c-irs-form/L7v0iDelI

 

Also here is the IRS definition of a Schedule C business and the link to more information:

Use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if:

  • Your primary purpose for engaging in the activity is for income or profit.

 

  • You are involved in the activity with continuity and regularity.

https://www.irs.gov/forms-pubs/about-schedule-c-form-1040#:~:text=Use%20Schedule%20C%20(Form%201040,...

hchu
Employee Tax Expert

Filing when selling on EBay.

Way to go trying to downsize, that's been on my bucket list for a long time.  Since you will get two separate 1099's from E-bay it is probably easier to create 2 separate schedule C's. You can use the Turbo tax self employed program (it is available as an online program).  This will make is much easier to track your income and separate expenses. This is a link to an excellent Turbo tax article.

https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-tax-filing-factsheet-for-ebay-sellers/L...

 

Enjoy your nice clutter free home!

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