Monday, January 30, 2017

How Online Sellers Find Total Shipping Costs via Paypal for Tax Filing

How Online Sellers Find Total Shipping Costs via Paypal for Tax Filing


eBay
 sellers should not overlook the cost of shipping when filing taxes. Shipping charges paid via Paypal are deductible on Schedule C: Profit or Loss from Business. To determine the amount of shipping charges paid via Paypal, do the following:

1. Log into your PayPal account. Click Activity tab.
2. On the top right, click the drop down arrow next to "Statements". Select "Activity Export".
3. Select Custom Date Range and enter the date range needed for the year.
4. Then, choose download all activity or just completed payments. I recommend selecting comma separated value (csv) format and all activity (Comma Delimited - All Activity) to gather other totals often used on tax form Schedule C.
5. The report is not generated automatically. You will receive an email from Paypal once the report is available.
6. Once the email is received, log in to Paypal and download the .csv file.
7. Open the file in a spreadsheet program (Excel, OpenOffice, etc).
8. Sort the data by Name
9. Search for “eBay Inc Shipping”
10. Use the AutoSum tool to total the amounts paid to “eBay Inc Shipping”


Other deductions on Schedule C are available in Paypal’s Annual Financial Summary Report. However, this report is only available to US Business and Premier account holders.
Visit 
Taxes Made Easy with Paypal Annual Financial Summary Report for more information.