So once again I called Ebay today on this issue. Today I was specifically inquiring about the Federal. The agent walked me through checking my account to see if a 1099k was sent to the Federal Government which you can do once you log into your paypal account click on Activity up top then on the next screen click on statements right below the simple and detailed grids...right click and wella tax documents. I had no tax documents although I did receive a 1099k for MA sales over $600.00 but I guess I did not meet the requirements to have a 1099k generated to the Federal Government. Now the agent said income regardless should be reported to the IRS and to seek advise from an accountant. I never had an accountant before but due to this fiasco I called someone on Monday and met with them Today for advise. He said listen bad advice would be don't report it and hope your not audited since its such a small amount of money, super gamble, then subjected to not only the amount due, but penalties and interest. So bad advice. Then when I suggested since the state received the 1099k and due to the last minute law change and the fact that I have to now file with MA this 1099K how about I hire you do my State return as a business and I will go back the best I can to produce either fair market value or actual receipts. Then I will just file my Federal on my own and get back return and call it a day. He said he would not take my business because since I showed him the 1099k he now knows I have reportable income regardless of this being due to a state law change or not he does not recommend filing on one return as a business say for the State and then Filing as a non business for the Federal without the 1099K. He further noted that the state and federal to have a system that supplies each other information so that right there could pose a problem being a business on one with a 1099K and on the other (Federal) not reporting the 1099K. At the end of the day he said all income is taxable period. So by filing the 1099K on the state you should also file on your Federal. Obviously everyone can make their own financial decisions, for me, I was quoted by several accountants a $500.00 fee to prepare business taxes to account for the 1099K this guy luckily was decent and felt bad for the situation and lowered his charges for him to do it to $200.00. I would of paid $60.00 anyways to file my taxes with taxact.com so $140.00 more to an accountant that already as I left his office today I am exactly at the amount of a return I should of been getting and I still have a full page list of information I need to provide the accountant, measurements of my home, the room I use to sell on Ebay, business supplies, bubble wrap, tape, packaging etc, mileage to pick up items to go to the post office, cost for telephone, internet, square footage for any inventory in the house that is in a room other than where I sell my used goods on Ebay. He said most likely you are operating at a loss, which I am but you want me to report as a business I shall and now the state can write me a check by the time we are done with this nightmare which honestly is A LOT of work, but out of spite I will produce all the numbers and information that the accountant wants if I have to spend my entire weekend recreating the data for him. Fortunately I keep receipts and have files of receipts for almost anything that I buy clothes, gifts pretty much everything..Now the challenge begins to go through them and try to locate receipts for what I can and for what I cant I will have to research and provide documentation on the items value. Will be worth all my aggravation to in the end to salvage my federal return and to go from owing the state $3.00 to hopefully they owing me for my "business" losses. I will not be using Ebay or Paypal much further I just don't see the need. Unfortunately, I actually may have to file this way next year because I think I went over $600.00 this past January 2018 but next year with all my new found knowledge I will not be using either service for one day of the year 2019 so this never happens again. The good thing is I will keep good records now for this year so next February I am not in pain from it all. Good Luck everybody...
... View more