How to report refunded Ebay transactions when filing as self-employed?

[dougbowen93]

I sold a few  high-price items on Ebay last year, and now I'm having to file as self-employed (schedule C). Needless to say a 1099k form is being filed also, but it doesn't reflect the fact that about 30% of my transactions were refunded (the item was returned). I'm not able to find any place in income expenses to report these refunds. How should I approach this?

[Carl]

There's a spot called "Income You Gave Back" in the Business Income section.

[DawnC0 · Accepted solution]

This income and returned income is reported in the Self-employed income and expenses section in TurboTax Online.  Once you have entered the 1099-K income, you will see an option for Rebates/Refunds paid.  

Type    sch c

into the search bar.  Hit enter and then use the Jump to sch c link to get to the Self-Employment Summary.  If your business is set up already, click Edit next to your business.  If it isn't set up, go through the business set-up screens so your business appears in the list.  

Click on Add Income for this Work.  Click on Other Self-employed Income and enter the amount from the 1099-K.  Then click on Add Income from this Work again.  This time, you will see the option for Rebates/Refunds paid.  

[jon90]

How do I entry refunds if I did not receive a 1099k. I put the gross on the cash / checks and named it eBay sales, is this correct?

[JamesG1]

Yes, you may label the income as needed to clarify your reporting.  Click Add another row under Income in your self-employment activity.

Self-employment income may be reported whether or not you received an IRS form 1099-K.

Refunds may be reported in Other miscellaneous expenses.  Select the expense category under Add expenses for this work at the screen Here's your info.

@jon90 

[jon90]

Thank you for your reply?

[PattiF]

Yes, that would be the best spot to enter the refund, Part I, Line 2 Returns and allowances.

[jon90]

Yes, but how to I get it on line 2, when I did not get a 1099k?

[DMarkM1]

Add an income item for your business.  On the page titled "Income for your XXX work" You'll see "Common Income" items and "Less common Income" items.  In the "Less Common" section you will see "Refunds and Rebates (income returned to customers)."  Select that and enter the amount.

[jon90]

Thank you so much.