Ebay 1099-T errors

Just got a 1099-K from eBay, what a mess! Mine shows less than $2K but ...

They report Gross payment which is wrong per latest IRS guidelines!

Ebay fees, taxes and refunds should not be counted per IRS website and they state we should ask eBay for corrected 1099's - that will be fun.

In addition, I sold my own possessions (not a business seller) which as they were older, I was paid less than purchase price for. That means they sold at a loss not a profit.

Then there is the uncertainty about the threshold for reporting 2024 is it $5000 or $500 and is that Gross or the gain as I would think.

Any experts out there?

1420

Expert Alumni

Feb 1, 2025 12:13:20 PM

Yes, you are right eBay was not required to send you a 1099-K, but they can. If the error in your 1099-K is causing the items to be a gain (gross amount of payment is more than your cost), you should ask for a corrected one.

Since they did send you the form and your items were all sold at a loss, here is what steps you need to take in TurboTax Online:

Within your tax return go to the magnifying glass icon on the top right, type 1099-K and select the Jump to 1099-K link in the search results
Choose Add a 1099-K
The next screen will ask "Which type of income your 1099-K is for?" choose Personal item sales, then Continue
Enter the information from your 1099-K
After you choose continue, the next screen will show "Personal Item Sales". Here is where you choose "All items were sold at a loss or had no gain"

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Ebay 1099-T errors