I am getting caught up on taxes currently. I sold a lot of goods on Facebook marketplace in 2021. I never received a 1099-k from Facebook and there is literally no customer service that can help. I do however have an excel spreadsheet that was generated in the beginning of 2022 that has all of my 2021 sales documented....
Is there someway to retrieve the original 1099-k that FB issued? And if not can I go ahead and file this income some other way under general income? Thanks
are you sure that FB generated a 1099K? The 2021 rules required $20,000 AND 200 transactions for it to be issued. Whether or not you receive a 1099K, you are required to report your income.
were these personal items or items you purchased and then turned around and sold?
if personal items, and you sold them for less than your originally purcahsed them for, that is not taxable income and is not reported on your tax return.
In the Desktop Home & Business version, enter the total income as General income. You don't need to get a 1099NEC or 1099Misc or 1099K. Even if you did you can enter all your income as Cash under General. Only the total goes to Schedule C line 1.
Go to Business tab-Continue
Continue on to the Business Income and Expenses page -
Profit or Loss from Business, click Start or Update.
You should see the Business Summary page that lists your businesses. Then click EDIT by the business name and the next screen should be a list of topics,
Business Profile, Business Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.
Business Income - Click on Start or Update
If you have a business, you are required to keep accurate records and report your income and expenses, regardless of whether you get tax paperwork. You will generally only get a 1099-K from a payment processor like PayPal or Squarespace. Does FBM actually process payments or is it just an advertising platform?
If you are only selling your own used items for less than your original cost, you don't have taxable income and you probably don't even have a small business. Schedule C is used to report your small business, where a business is an "ongoing trade or business" that you regularly engage in for a profit motive. Selling used items for less than you paid is not profit (even though it is cash to hand) and won't usually be a business unless it you do it "regularly" (more than occasionally selling used items).
If you are buying inventory and reselling it for more than you paid, then you are probably a business. You report your gross income (sales), and you can subtract the cost of items and other "ordinary and necessary" expenses. You pay income tax and self-employment tax on the net profit. You report your income from your own accurate records, regardless of what tax paperwork you get.
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