1099K: How to determine state taxes collected by Paypal
derryb
Posts: 36,981 ✭✭✭✭✭
OK, so the 1099k from PP shows all income processed by PP. However this total is not actually correct. It includes state taxes charged to and paid by the buyer on ebay sales. Naturally if my 1099K shows $50,000 income, I want to know my actual income after the state tax is subtracted from it.
Can't find the data anywhere in PP or ebay except for the individual transaction details for each transaction in PP. Lotta work to add those all up. Anyone know where a total can be found.
Hopefully the IRS will realize the total income reported by PP is not all actually income. If not that could be a big problem for sellers.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Comments
“Hopefully the IRS will realize the total income reported by PP is not all actually income.”
They won’t since the K has the gross receipts and the only thing broken down is the monthlies.
Ebay has the monthly invoice or that 3-month spreadsheet (I think it’s working). Either way it’ll take some “figuring” to get it on Schedule C.
I believe there is a way to download your transactions into a file that can be entered on a spreadsheet. You can get the total taxes collected there.
The collection of these state and local sales taxes is going to drive many small sellers out of business to the benefit of large corporate entities that have professional tax accounts on their payroll. The big keep getting bigger and richer.
paypal-->reports-->activity report-->balance affecting-->choose date range--> click customize report fields-->make sure transaction details is clicked.
Open the report in excel once it generates. In the report, choose the column labeled "type". Sort sheet by this column A-Z.
The transactions are labeled in this column as "import tax payment"
I think these are the tax transactions. You should be able to manipulate the data form there (copy and paste those transactions and sum the amounts) to get the taxes ebay paid.
I just went through this with the dept of revenue, after reporting this last quarter. In particular, with regards to the "non taxed" coins currency and bullion in other states. And I just have more paperwork with less money, in the end. E-Business, as usual.