How to correctly enter eBay related deductions?

Hello all.

I believe that I am almost done doing my taxes for the first time as an eBay seller. However, I am unsure about a few details. Could one of you please try to assist me with these? Thanks in advance. Here goes:

1--Where is the proper place to put the Postage charged to buyers that is included in box 1a of my 1099-K? Under "Other Miscellaneous Expenses?"

2--Where is the proper place to put/deduct the fees that eBay charges on each sale? Should this go under Under "(sales)? commissions"" or Other Miscellaneous Expenses?"

3--Where is the proper place to put the Value of items sold? Should this be under a) supplies or b) inventory / cost of goods sold?

Thanks again all!

1541

1 Best answer

Expert Alumni

Mar 16, 2025 12:06:51 PM

The charge for postage is included in the IRS form 1099-K box 1a and you are reporting self-employment income.

Postage may be charged in the self-employment activity under other miscellaneous expenses.

The charge for eBay fees is included in the IRS form 1099-K box 1a and you are reporting self-employment income.

The eBay fees may be reported under commissions.

In TurboTax Online, the value of the goods sold should be reported under Inventory/Cost of Goods Sold . Follow these steps:

At the screen Here's your xxx info. select Add expenses for this work.
In the search box in the center of the screen, enter Inventory.
Check the box to the left of Inventory. Click Continue.
At the screen Here's your info for this work, click the pencil to the right of Inventory.
At the screen Do you have inventory for your work? select Yes, I have inventory to report. Click Continue.
Follow the screens to report beginning inventory, ending inventory and cost of goods.