1099-K: does the amount shown in BOX 1A include sales tax collected? (paypal 1099-K)

Forum|Forum|1 year ago
February 13, 2025
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I have a 1099-K for about $8000.00 from paypal. I'm wondering if they subtracted out the SALES TAX ( for united states sales tax for certain states ) from the box 1A total gross received amount? I've researched online and can't find an answer. I downloaded the 1099-reconciliation form ( which shows how paypal calculated the 1099-K values ) and from what I can see they INCLUDED the sales tax in that $8K number. So that would mean I get to report the sales tax as an expense in turbo tax deluxe right?

Best answer by RobertB4444

If they included the sales tax then you definitely get to deduct it as an expense.

@zombitroid

RobertB4444Answer

If they included the sales tax then you definitely get to deduct it as an expense.

@zombitroid

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zombitroidAuthor

Thank you! I just talked to paypal on the phone - they confirmed that the paypal 1099-K includes the GROSS sales amount for all transactions for "goods and services". No personal transactions ( no reimbursements between friends / family included on 1099-K ). In that amount in box 1A, is the gross sales which includes sales tax and paypal fees, shipping paid, etc.,

For anyone out there that this helps: you can sum the sales tax by downloading a copy of your 202X statement and summing the fees column ( for paypal fees ) and the sales tax column ( for sales tax ).

This is DIFFERENT than the EBAY 1099-K which deducts the sales tax from the final amount reported on the 1099-K.

I also confirmed what paypal said on the phone myself by downloading the 2024 transaction reconcilation document ( which is a CSV of all the numeric data they summed to calculate box 1A ). I confirmed some of the transactions to my wallet history and realized that paypal did NOT take out the paypal fees or the sales tax from the 1099-K calculation. So this info is confirmed by my math and the paypal agent. But i suggest you do your own math if you have this question just to be sure 🙂 good luck!