eBay reports your gross sales on a 1099-K, and accurate cost of goods sold is what keeps your taxable profit honest.
eBay sellers report on Schedule C, and the 1099-K shows gross sales before fees, shipping, and refunds, so your records must reconcile down to actual profit.
The single most important task is tracking what you paid for inventory, because cost of goods sold reduces taxable income and the platform does not track it for you.
Income you’ll report on: 1099-K.
Most people in this line of work leave money on the table. Here's what we make sure to capture:
If you earn as an independent contractor, yes — self-employment tax is 15.3% (Social Security and Medicare) on your net profit, on top of regular income tax. You deduct half of it, and every business deduction lowers what you owe. We handle the calculation on Schedule SE.
Common write-offs include cost of goods sold for items purchased to resell, ebay final value and listing fees, shipping supplies, postage, and packaging, mileage to source inventory and ship orders, plus a share of your phone and any home-office use. We go through your year line by line so nothing legitimate gets missed.
If you expect to owe $1,000 or more for the year, the IRS generally wants quarterly estimated payments to avoid an underpayment penalty. We calculate them so next April isn't a surprise.
Yes. Your income is taxable whether or not a client or platform sent a 1099. We report it correctly and offset it with every deduction you qualify for.
Tell us what you've got and we'll come back within one business day with the plan and the price · from a preparer who knows your line of work.
Tell us what you’ve got