2020 Paypal 1099 K report that includes Ebay / Paypal fees and Paypal sales tax
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Hello,
I am a 76 year old retired worker who collected sports cards for over 30 years and decided to clean out my collection so I sold some cards on Ebay last year. I only had 67 transactions but did well, had $25000 in sales, because the sports card market is a little crazy. In any case, I received a 1099 K form from both Ebay and Paypal indicating that I have to pay federal and state taxes on this income. Since I live in Illinois I am required to report all the income to the federal and state IRS. I am not running a business and have no operating expenses so I need to report the actual income as a hobby on Schedule 1. In doing so, I determined that the Ebay and Paypal amounts on both 1099 Ks include Ebay and Paypal fees and the Paypal 1099 K also includes sales tax that was collected by Ebay and then deducted from my payments and sent to their respective states of the buyers. The question I have is where do I report the 1099 K gross amounts on Schedule 1 and where do I enter the ebay/paypal fees and sales tax that are not income to me as a deduction on Schedule 1 because I should not have to pay income tax on sales tax or third party fees? Any assistance would be greatly appreciated.
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