1099-K from eBay - A refunded sale put me over the top.

Forum|Forum|1 year ago
February 2, 2025
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I received a 1099-K from eBay and they included a sale of over $3000 which was returned to me and refunded. When I contacted eBay they said the 1099-K is the unadjusted gross amount of sale and not proceeds. Had this not been included, I would not have received the form 1099-K...but I did. How do I report this and explain the problem on Turbo Tax?

TurboTax Deluxe Online

Best answer by MindyB

Yes, this is a problem as you mention, but there is a solution in TurboTax online.

If this is for a business, you will navigate to Wages & Income, Self Employment Income, choose your business. Then add income. There will be an option for "rebates and refunds."

If this was personal items not for a business, while entering your 1099-K, you can choose the option "This amount in box 1a is too high, and enter the refund.

MindyBAnswer

Yes, this is a problem as you mention, but there is a solution in TurboTax online.

If this is for a business, you will navigate to Wages & Income, Self Employment Income, choose your business. Then add income. There will be an option for "rebates and refunds."

If this was personal items not for a business, while entering your 1099-K, you can choose the option "This amount in box 1a is too high, and enter the refund.

gtmylanAuthor

Employee

I cannot locate the Refunds section you indicated under Less Common Income. I do have to say that I chose all sales were losses which they were and now the total amount on 1099K is showing on page 1 under income. I also listed $3500 as refunds.