Ebay seller - My numbers don't add up.

Forum|Forum|3 years ago
March 12, 2023
1 reply
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Hi, can someone please help me understand/fix this?

Gross ebay sales on 1099K: $124,000. Cost of merchandise: $84,000. Total Expenses (Commissions $16,000, Supplies $1000, Shipping costs: $8000) = $25000. Inventory value stays the same from last year. Resulting Business Income listed on Turbotax: $139,000. Shouldn't the result be $124,000 minus $84,000, minus $25,000 = $15,000? I've been using Turbotax for ebay for 5 years, and it has always worked out in the past. Can someone tell me what I'm missing?

JohnB5677

I can't explain where those numbers came from, but you should be using TurboTax Self-employed.

Post the 1099-K

You will come to a screen Which type of income is your 1099-K for?
1. Post it as Self-employment income. (I don't think it is Personal Item Sales.)
2. On the Your self-employment 1099-K income screen you can select or create your business.
3. Continue. This will give you a summary of your 1099-K.
Scroll and select self-employment.
1. Click REVIEW on your business.
2. Select [Add expenses for this work]
3. From the drop down select (you will have to go down and click "Less Common"
  1. Supplies
  2. Commissions
  3. Inventory
4. Post your numbers here.
  1. You should get a Net Profit of $15,000.
  2. $124,000 - 84,000-16,000-1,000-8,000 = 15,000