Shipping Cost Count as Income?

[stealthnorris]

In some listings I do not offer free shipping and I charge for shipping and sometimes I overcharge than what it usually costs me to ship,

But of course eBay and other entities dont know this exactly.



Now, is that shipping revenue counted as income on eBay?
Trying to figure out if one of my accounts went over the $20,000 this year.

[rsot]

It wasn't included as income - it's cost to ship so not money that's yours to keep technically

[stealthnorris]

Originally Posted by rsot

It wasn't included as income - it's cost to ship so not money that's yours to keep technically

Perfect.

So I can exclude my shipping revenue when counting towards the $20,000 / year for 2020's IRS 1099k threshold?

[Hank]

Originally Posted by rsot

It wasn't included as income - it's cost to ship so not money that's yours to keep technically

ebays take on it.....

https://www.ebay.com/help/selling/fe...-1099k?id=4794

[agent006140]

Originally Posted by stealthnorris

Perfect.

So I can exclude my shipping revenue when counting towards the $20,000 / year for 2020's IRS 1099k threshold?

1099K shows the total you take in(item plus shipping),then you can report shipping as business expense on your tax return

[phaz0rz]

The 1099K will show total payments received for the year. So they will include amounts you charged for shipping.

You then have to deduct your expenses. Anything you paid for shipping, refunds you issued, credits you were given, etc, are all deducted by you afterwards.

The amount you're charging your customers for shipping is irrelevant since that's just lumped into your total payments received. You have to find out what you actually paid for shipping for the whole year and deduct that.


(sorry didn't realize I was just explaining what agent already said. )

[agent006140]

If you have collected sales tax ,and remit them to the state yourself (outside Ebay or Etsy or AMZN),then you should deduct that amount from the 1099K gross.

[phaz0rz]

Are any sellers still doing that now that sales tax is automatically added for most states anyway?

[agent006140]

if they have their own website or sell outside those venues you mentioned.
In a state audit,they will look at your bank account,if you cannot prove the deposit to be your wage,SS payments,insurance settlement,inheritance,gambling wins,lottery wins,inter bank transfer,then they consider it is a cash transaction and you neglect to collect and remit sales tax,so now you the seller would have to pay sales tax for your buyer.
so it is a good idea to have a bank account just for commerce only