State sales tax

Waynebone51
Contributor
Contributor
In 2019 eBay collected state sales tax on some of the items I sold. My question is: Does the 1099k tax report include this collected amount in the gross figures or has it been deducted. I don’t want to pay income tax on state Sales taxes that my buyers paid.
Login to Me Too
1 REPLY 1

PayPal_Brooke
Moderator
Moderator

Hi @Waynebone51

 

As required by the IRS, this amount includes all fees and payments associated with their sales, including shipping fees or sales tax received. As the dollar amount on their Form 1099-K is a gross amount, any adjustments for credits, cash equivalents, discounts, fees, refunded amounts, or any other amounts will not be netted out.

 

I hope this helps.

 

Thanks, 

Brooke

Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.