Ebay 1099-K and cancelled (refunded) transactions

Forum|Forum|3 years ago
January 31, 2023
2 replies
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I sold several new items on ebay last year...a printer, laptop & vacuum. I was in between jobs and having cash flow issues. They were new in box (not used) which I had laying around and wasn't using. I plan to file it as Other, because I'm not a regular seller (Self-Employed), but these were new and not used "Personal" used items.

The other half of the story...the laptop & printer sale(s) were both cancelled & refunded by me, as both buyers used unverified / international drop shipping addresses which I did not feel comfortable shipping to. The only successful transaction was the vacuum, which was about $60 +$45 shipping. The laptop was about $400 & the printer about $200. I'm using TurboTax Deluxe. How do I report the 1099-K as "Other", and then enter negative adjustments for both of those items?

Best answer by DawnC

It is now saying I need to upgrade to TurboTax Premier, because I sold Stocks, Bonds or Mutual Funds. WTF?

If you choose Personal - it will make you complete the 1099-B section which requires Premier. If you choose Other, it requires using an entry in Other Reportable income which requires Deluxe. If you don't report it and keep the information with your tax records, you can use Free Edition. If there is no gain and it was personal items you can show in case you receive an inquiry, you don't have to report it. It is a tax form the IRS received so they could question you, but if you can show the money was for a vacuum you paid more for than received, you won't have any issue.

fanfare

Level 15

even if they are new in box, they are still your personal items.

whether they are personal or not is irrelevant because ... ... you did not sell them.

@c_man99

c_man99Author

Level 3

Right...but the third item (vacuum) was sold.

Would that also be a Personal Item, even if it is new in box?

DawnC

Level 15

They are all personal items, even if they are new - including the vacuum. The last option in the 1099-K section is 'Other'.

You only need to report personal items that you sold if they were sold for more than what you originally paid (gain). If you sold the item for a loss, don't report it and keep the information with your tax records.

If you have a 1099-K, enter it as a 1099-K (search for 1099-K) and choose the last option, Other. You can enter the negating entry in Less Common Income - Other Reportable Income. See Question #3 in this Fact Sheet.

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c_man99Author

Level 3

Thanks Dawn! Do I still have to attach the 1099-K to my taxes & file it as "Personal"? When I do this, TurboTax doesn't deduct anything from my Federal or State refunds. But if I choose "Other", they both go down.

If I choose "Personal", do I have to enter any additional information or declarations about these items? It also seems that TurboTax doesn't like the PDF I attached (from eBay), as there are issues with the State ID and the way it appears on the form. I think I will have to remove it & type it in myself.