How do i get started with doing taxes for selling on eBay.com? First time.

[jake1718123]

Hello, i have had over $20k in sales and 500 transactions on eBay and have to do my taxes. I also got a 1099-K form and am a little confused if i am doing this right. Here's where i went.

Self-Employment ->Wrote in eBay into the search bar ->I click on Electronic auctions ->Side Job ->Additional income and other income. Includes 1099-K, cash, checks, and other income.

Now it's asking me for type of income and $ amount. Do i write the name of the item i sold into this box? Or do i write 1099-K. Is there also a limit on these boxes? Since i have to do this over 500 times.

Thanks for reading.

[KittyM · Accepted solution]

No, I'm not sure if there's a limit, but there is good news: you don't have to enter each sale separately.  Take the gross sales amount (the sum of everything you sold) and enter that.  The description is 1099-K.

Then you will encounter a section for purchases:  here you will add up what you paid for everything you've listed on eBay.  

There will also be a section for Inventory.  Inventory is the items sitting around on shelves and in boxes waiting to be sold.  

Don't forget to deduct your eBay fees, shipping and PayPal costs.

[jake1718123]

Thank you so much. I thought i would have to do it for each transaction.
 I do not have any inventory left since i sold it all.

[KittyM]

My pleasure.