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leezza
New Member

I live in MA -- I have received a 1099K from PayPal for $680. This amount represents selling used personal craft supplies - No Profit! Do I report this?

And, if I do have to report this, I will need to amend my taxes, as this 1099K arrived AFTER I had already filed for the year.

Apparently, there is a new Tax change in Massachusetts, that required PayPal to send these out to anyone who rec'd payments over $600 in 2017.

 If I do need to amend and refile, how I show the charges that were deducted for PayPal Fees and Postage (shipping).

I had NO idea selling "yard sale" stuff to friends out of town, would be taxable?  

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5 Replies
CathiM
New Member

I live in MA -- I have received a 1099K from PayPal for $680. This amount represents selling used personal craft supplies - No Profit! Do I report this?

It is not taxable.  You can use the cost of the clothes as a deduction and you will have no net income to pay taxes on. If the IRS questions it, then show them your documentation. Print out or screen shot from Paypal something showing that what you sold was used personal items.

You do not report the sale of your personal items because you sold them for less than you paid for them. The IRS will not allow you to deduct a loss on personal items that you sell.

leezza
New Member

I live in MA -- I have received a 1099K from PayPal for $680. This amount represents selling used personal craft supplies - No Profit! Do I report this?

Thank you so much!  That's a huge help !
CathiM
New Member

I live in MA -- I have received a 1099K from PayPal for $680. This amount represents selling used personal craft supplies - No Profit! Do I report this?

Your welcome!

I live in MA -- I have received a 1099K from PayPal for $680. This amount represents selling used personal craft supplies - No Profit! Do I report this?

I have the same issue. So don't file this correct?
CathiM
New Member

I live in MA -- I have received a 1099K from PayPal for $680. This amount represents selling used personal craft supplies - No Profit! Do I report this?

You can just keep your records in case they question it but if you haven't filed your taxes yet and feel more comfortable including somewhere on your return, do it this way, it will zero out and not be taxed: Enter it under Wages & Income, Your 2017 Income Summary, scroll down click on Start next to Miscellaneous Income, then choose Other reportable income, answer Yes to "Any Other Taxable Income?" Under Description put "Sales of Personal Property 1099-K" and enter the amount from the 1099-K in the next box, click continue, click on "add another income item", Under Description put "Cost of Personal Property 1099-K" and enter the same amount as a negative. On the Other Miscellaneous Income Summary make sure you see the 2 items, one positive and one negative and Total is $0.
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