1099-K from eBay - A refunded sale put me over the top.

[gtmylan]

I received a 1099-K from eBay and they included a sale of over $3000 which was returned to me and refunded. When I contacted eBay they said the 1099-K is the unadjusted gross amount of sale and not proceeds. Had this not been included, I would not have received the form 1099-K...but I did.  How do I report this and explain the problem on Turbo Tax?

[MindyB · Accepted solution]

Yes, this is a problem as you mention, but there is a solution in TurboTax online.

If this is for a business, you will navigate to Wages & Income, Self Employment Income, choose your business.  Then add income.  There will be an option for "rebates and refunds."

If this was personal items not for a business, while entering your 1099-K, you can choose the option "This amount in box 1a is too high, and enter the refund.

[gtmylan]

I cannot locate the Refunds section you indicated under Less Common Income. I do have to say that I chose all sales were losses which they were and now the total amount on 1099K is showing on page 1 under income. I also listed $3500 as refunds.

[PatriciaV]

Please clarify if these entries are reporting the correct income for your eBay transactions. Or do you need additional assistance?

[gtmylan]

I have entered the amount from the 1099-K and then the $3500 in the area where it asks for the amount that should NOT be included but when I go to the 1040 it shows the full amount. 

[gtmylan]

Still hoping to receive an answer!

[KeshaH]

We can look at your return and see exactly what you see to  help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

Please reply to this message with your token and we'll take a look to see what we can find. Let us know what state is included in your return, if any, so that we can better assist you.

[gtmylan]

No need to share my return. I filled everything in and checked Form 1040 and lo and behold, everything worked out fine. It is 100% solved on its own!