Author Topic: reporting Paypal payment from ebay on tax filing?  (Read 261 times)

Offline peace123

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reporting Paypal payment from ebay on tax filing?
« on: April 08, 2021, 06:36:12 PM »
I am using FREETAXUSA to file federal & state tax. I got Paypal 1099k for amount $1200 for personal items sold on ebay and some free nights sold privately to DD members. I guess this amount must be reported to IRS? If I report this, it is like I gave away my items for free.
If I report this, my refund reduces by $300. Anyone uses freetaxusa.com  to file tax? Any trick to make sure my refund doesn't change because of this?  Thanks for your advice

Offline LoLo

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Re: reporting Paypal payment from ebay on tax filing?
« Reply #1 on: April 08, 2021, 06:42:32 PM »
You can use expenses against it, such as CC annual fees and the cost of the items sold.

Disclaimer: not legal advice.

Offline Ephcc90

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Re: reporting Paypal payment from ebay on tax filing?
« Reply #2 on: April 09, 2021, 12:41:53 AM »
I am using FREETAXUSA to file federal & state tax. I got Paypal 1099k for amount $1200 for personal items sold on ebay and some free nights sold privately to DD members. I guess this amount must be reported to IRS? If I report this, it is like I gave away my items for free.
If I report this, my refund reduces by $300. Anyone uses freetaxusa.com  to file tax? Any trick to make sure my refund doesn't change because of this?  Thanks for your advice
Try creating a “new” 1099 with the same info and reporting a negative number. Note that the sale of free nights is likely fully taxable but you can likely include the cost of the items that you sold in arriving at the negative number (but not more then you sold it for).

Not legal or accounting advice.