Where to enter e-bay sales

[cp12wv]

Hello,

This year I stated buying lots of board game miniatures on e-bay with the intent of improving my collection without having to overpay for single pieces.  So, I would buy the lots, keep the pieces I wanted and sell off the ones that I did not need.  I ended up making a profit, but I received no 1099's from E-Bay or PayPal.

How would I go about reporting this income?  I do have most of the receipts although sometimes it is hard to figure out which lot a piece sold is from.  I also was able to download all of my sales information from e-bay, but am unsure how to enter all this information.  I have TurboTax Deluxe.

Thank you.

[garybisogna]

If you are filing New York State taxes, you will come across a line under "Credits and Other Taxes", then another line that says "Sales & Use Taxes" that allow you to enter internet purchases that were not taxed. I don't think you have to pay taxes on sales you made, but not sure on that. None of this has to be this difficult or annoying; I don't mind paying taxes to my government but how I loathe having to figure it out. Even with a graduate degree I find it challenging!

[DianeW777]

It depends.  It sounds like you are not really in the business of buying and selling a product (your purchases).  If this is the case you can use the following method to report the income on your tax return.

You should select it was not your main job and there was no intent to earn money. This income will show up on Schedule 1, Line 8z.

You can view your 1040 form before you e-file:

1. Open or continue your return. (TurboTax Online)
2. With the Tax Tools menu open, you can then:
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.
3. TurboTax CD/Desktop - Select Forms (upper right) > Scroll to Schedule 1 (left) > View line 8z

In this scenario you are also allowed to make another entry to remove the cost of the products you sold or cost of goods (COGs). No other expenses would be allowed.

Next, you will have to report your COGS.  Follow these steps to report your COGS:

1. Log in to your TurboTax account if it is not open.
2. Select the Wages & Income tab.
3. Scroll down to Less common income click Show more.
4. On the page Let's Work on Any Miscellaneous Income click on Other reportable income.
5. On the page Any Other Taxable Income?  select yes.
6. On the page, Other Taxable Income enter eBay 1099-K COGS for the description and the cost of the items sold as a negative amount for example  -1,200.
7. Select continue and answer No on the next page.

This process will report your gross income reported to you on the 1099-K in the first entry and then "back-out" your  COGS in the second entry. 

Please update here if you need further assistance.

@cp12wv

[cp12wv]

Hello,

Under what income section would I do the step below?

You should select it was not your main job and there was no intent to earn money. This income will show up on Schedule 1, Line 8z.

@DianeW777 

[Vanessa A]

You will find that under less  common income. To get there select the following:

• Federal
• Income and Expenses
• Scroll down to Less Common Income and click Show More
• Start next to Miscellaneous Income
• Start next to Other Reportable Income

This will put it on line 8z of your schedule 1 as other income.