How Amazon Sellers Find Tax Form 1099-K

To generate tax document 1099-K for Amazon, follow these steps:

1. Log in to Seller Central
2. Click on Reports, Tax Document Library
3. Click “Generate a Tax Report”
4. Report type = Summary
5. Enter Custom Date Range 01/01/2016 – 12/31/2016
6. Click Generate
7. The status will state “In Progress”. After a few minutes refresh the page (hit F5) to see if the status is updated. If so, click Download.
8. The file that downloads is a comma separated file (.csv) that can be opened using Microsoft Excel.

Only online sellers who exceed the IRS thresholds will receive an IRS Form 1099-K from Amazon. However, all income earned must be reported to the IRS. Visit How to File Taxes for Selling Online for details on the IRS thresholds. Sellers who do not meet the thresholds can calculate gross receipts with the Annual Sales Report.

Visit How Amazon Sellers Generate an Annual Sales Report.

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.

Taxes made easy with Paypal Annual Financial Summary Report

United States business / premier Paypal account holders can access the Annual Financial Summary Report for key information when filing tax returns. This report contains valuable information used on Tax Form Schedule C Profit or Loss from Business. To access the report, online sellers should log in to Paypal, then:

1. Click the Activity link across the top
2. From the drop down box on the right where it says Statements, select Reporting Center

3. On the right, select Financial Summaries. The far right side has the Annual Financial Summary.

4. Select the tax year from the drop down list and click “download report”

The Annual Financial Summary includes key information that can be used on Tax Form Schedule C Profit or Loss from Business. Specifically:

Schedule C, Gross Receipts = Sales Activity / Payments Received
Schedule C, Line 2.Returns and allowances = Sales Activity / Refunds sent
Schedule C, Line 27a Other Expenses = Fees / Payment fees

In addition to the information provided on the Annual Financial Summary Report, Paypal users exceeding the IRS threshold amounts will receive a 1099-K form. To see if your account qualifies for a 1099K form, visit How Online Sellers Find Tax Form 1099-K from Paypal.

Sellers should have an organized bookkeeping system to store receipts. A simple and inexpensive solution is a bankers box. More sophisticated sellers may choose to store receipts digitally using a receipt scanner. Online sellers who have experience completing a tax return can file online for free using the IRS free file program. Visit How to File Federal Taxes Online for Free. Less experienced tax filers may use TurboTax which offers a guided, step-by-step questionnaire tailored to your personal income tax situation. For further guidance on starting to sell on eBay, subscribe to my YouTube Channel: Piece of Scrap, for how to sell on eBay, what to sell on eBay, shipping on eBay and much more!

How to File Taxes for Selling on eBay

It is against the law not to report all income to the IRS. Whether selling on eBay is your primary source of income, or simply a hobby, all income should be reported. Selling on eBay can be viewed as a hobby as long as one is not in it to make money. As such, any hobby expenses associated can be used to offset the income. However, unlike a business, any hobby losses cannot be used to offset hobby income. If one sells on eBay to make money, then the income must be reported as business income. In addition, any associated losses (lost or damaged packages, refunds) can be used to offset the income.

Only eBay sellers who exceed the IRS thresholds will receive an IRS Form 1099-K from Paypal. Sellers exceed the IRS thresholds when they received $20,000 in gross payment volume for the sale of goods or services AND have over 200 separate payments for goods or services in the same calendar year. 1099-K Tax Form is found via Paypal. Visit How Online Sellers Find Tax Form 1099-K from Paypal for detailed instructions on downloading Paypal's 1099-K Tax Form.

Advice for sellers reporting eBay income as a business:

- Keep detailed records including all receipts for purchases and expense. Organized sellers can use a bankers box or store receipts digitally with a receipt scanner.
- Research home office use expense. Write It Off! A-Z Guide to Tax Deductions for Home Based Businesses is full of helpful tax deductions.
- Research deductions for transportation: gas / parking / depreciation on vehicle
- Seek professional assistance related to tax accounting and IRS reporting
- Many deductions are available on Tax Schedule C Profit or Loss from Business.

Visit Taxes Made Easy with Paypal Annual Financial Summary Report for details.

For detailed information regarding the Internal Revenue Code Section 6050W as it relates to payment processors, including Paypal, visit:

https://www.paypal.com/webapps/mpp/irs6050w

How online sellers find tax form 1099-K from Paypal

Only eBay sellers who exceed the IRS thresholds will receive an IRS Form 1099-K from Paypal. Sellers exceed the IRS thresholds when they received $20,000 in gross payment volume for the sale of goods or services AND have over 200 separate payments for goods or services in the same calendar year. To download and print your Paypal 1099-K, do the following:

1. Log in to Paypal
2. Click on the Activity link at the top of the Summary page
3. On the Activity page, click the drop down arrow next to the Statements link near the right hand side of the screen.
4. After clicking on the arrow, a drop down list appears. Click “Tax Documents”
5. If you have met the IRS thresholds mentioned above, a downloadable 1099-K form will appear for the tax year. If you have not met the thresholds, a simple message appears: “You have no 20xx tax documents.”

If a seller has not met the IRS thresholds, the total sales amount for the year can still be determined. United States Business & Premier Account holders have access to an Annual Financial Summary Report. Visit Taxes Made Easy with Paypal Annual Financial Summary Report for more information. Any seller can download all account activity and total the amounts for "Payments Received". Visit How Online Sellers Find Total Shipping Costs Via Paypal for Tax Filing as an example.

Sellers should have an organized bookkeeping system to store receipts. A simple and inexpensive solution is a bankers box. More sophisticated sellers may choose to store receipts digitally using a receipt scanner. Online sellers who have experience completing a tax return can file online for free using the IRS free file program. Visit How to File Federal Taxes Online for Free. Less experienced tax filers may use TurboTax which offers a guided, step-by-step questionnaire tailored to your personal income tax situation. For further information on tax laws relating to online selling, The Complete Tax Guide for E-commerce Retailers including Amazon and eBay Sellers is a great read!

How to File Federal Taxes Online for Free

Tax time is upon us. Entrepreneurs including eBay and Amazon sellers can file the Federal Tax Return online using IRS freefile. The software is available via the Internal Revenue Service IRS website: www.irs.gov
 

One must know how to prepare taxes as the software is not as user friendly as others (TaxAct, TurboTax). The tax forms are fillable and can be sent electronically, but the software lacks the interview type questionnaire available in other tax preparation software. It does, however, perform math calculations and provides basic guidance with help screens per form.

To begin, direct the browser to http://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free

Each user will need to create a new account for every year as the information is not carried over from year to year. To complete the process more easily, I recommend the user have the following documentation available:

1. Copy of last year’s tax return. Last year’s Adjusted Gross Income (AGI) is required to e-file this year.

2. Total expenses to be used on Schedule C Profit or Loss from Business. Find out how to determine total shipping costs and transaction fees via Paypal.

3. Total sales for last year. Sellers meeting the IRS thresholds will receive a 1099-K from Paypal. See how to find the 1099-K from Paypal.

4. Amount of refunds / returns for the year. Returns and allowances as well as other expenses are available on the Annual Financial Summary Report. See how to download your copy at Taxes-made-easy-with-paypal-annual-financial-summary-report

As always, research the new tax laws and consult a professional if needed.

How to research an accepted Best Offer price on eBay

One of the biggest questions for experienced and newbie eBay sellers alike is, “How much should I sell this for?” While there are numerous ways to research selling prices for items listed on eBay, I will discuss a very specific one: after searching completed items on eBay, the price accepted was via Best Offer. What is the best offer accepted price?

To learn how to search completed listings for similar items on eBay, visit How to research what price to sell an item for on eBay If an item has sold with a Best Offer, the asking price is crossed out. To see the accepted Best Offer price, do the following:

1. Click to view the complete item auction detail page
2. Click the link near the top of the item description page “see original listing”
3. On the original listing page, scroll down to where the auction item number is stated
4. Just above the item number, is a link to Print the page
5. Click the Print link.

The print item page will display the accepted Best Offer price. Continue to research other sold items by returning to the Advanced Search Results and repeating the steps above to identify the selling price of a Best Offer acceptance.

How to research what price to sell an item for on eBay

One of the biggest questions for experienced and newbie eBay sellers alike is, “How much should I sell this item for?”. While there are numerous ways to research selling prices for items listed on eBay, I will discuss just one: search completed items on eBay for similar items or exactly the same item. 

To see how I search for completed comps (comparative solds) on eBay, watch this video on an eBay BOLO that sold for over $100! 

eBay also offers a FREE Terapeak Research tool. I use this tool when pricing rare BOLO items, including this one that sold for nearly $200! Watch how to use Terapeak Research Tool

To search completed listings for similar or exactly the same item on eBay:
1. Click the Advanced Find link in the upper right hand corner of most any eBay page.
2. On the Advanced Find page, enter the keyword search term (very generically).
3. Check the appropriate box for Condition (New or Used).
4. Then, scroll further down the page and select the box for Sold Items.
Optional: On the left side, click the box to search US only listings
5. Click the button to Search Now.
6. On the search results pages, the completed and sold listings appear. In the Sort drop down box, select the option to sort by “Highest price plus shipping”

Optional: The date of sale may be important if an item was once hard to find or just released. Newly released items will initially fetch a higher price until the item is readily available nationwide (rules of supply vs. demand)

Using the steps above, click here for an example of completed eBay listings for "cashmere sweater"

A seller can see what similar items are selling for by looking at these completed search results listings. If desired, click one of the completed listings to see the item auction description to verify the item is exactly you think it is.

If an item sells quickly at the Buy It Now price, some sellers may think that they let the item go at too low of a price. In fact, some sellers may think they could have received more for the item and greed sets in. Second guessing the price of an item that has already sold is easy to do, but not healthy. As long as a seller had made money on the item (after all fees, of course), then selling the item was a success and the overall store inventory turnover ratio has been improved.

If an item sells via Best Offer acceptance, the price is crossed out. To see the actual price accepted, visit How to Research an Accepted Best Offer Price on eBay

Swing into Summer Sale at Piece of Scrap on eBay

Swing into Summer Sale at piece-of-scrap on eBay for huge savings on many items. Name brand clothing includes: Ralph Lauren, Talbots, Harley-Davidson, Chico's, Lacoste, Tommy Bahama and more! Shop for Back to School, Halloween, Christmas in July or any day by browsing our variety of homemade costumes, designer shirts for boys & girls and winter / snow pants. As always, if you don't like my price, make a reasonable offer!

What to Sell on eBay: Halloween Costumes

Halloween costumes are a popular item to sell on eBay. Hard to find costumes and hand crafted outfits for men, women, children and groups may fetch a pretty penny on eBay. For example, costumes relating to the hit Disney movie, Frozen, have been sold out in retail stores for weeks prior to Halloween.

Crafty moms (and dads) can create a unique, one-of-kind, queen cape by visiting How to Make a No Sew Princess Elsa Cape. To create the friendliest snowman to walk the mountains above Arendelle, Olaf, follow the instructions available at How to Make an Olaf the Snowman Halloween Costume. Not crafty? No worries … one can purchase the pre-made Princess Elsa and Olaf the Snowman costumes in my eBay store, piece-of-scrap.

Cartoon character costumes including those from video games and animated television series are always popular. Purchase a Mario Bros costume in my eBay store, or hand craft your own by following the instructions How to Make a Mario Bros Halloween Costume. Mickey Mouse and Scooby Doo are other choices popular with young trick or treaters.

Subscribe to my YouTube channel: Piece Of Scrap for more last minute DIY Halloween costume ideas.

Think outside of the box for Thomas the Trains young fanatics. Instead of purchasing the standard Thomas the Train conductor uniform, available here, one can create a very unique Railroad Crossing Halloween costume. Or, create your own little conductor outfit with bib overalls available online.

Making a Halloween costume that is unique is not only creative but can be profitable. One can make these simple costumes for their own children and in the process, make a duplicate to sell on eBay.

Shipping on eBay with Free Insurance using USPS Priority Mail

eBay Top Rated Sellers and Platinum and Titanium PowerSellers who us

e eBay Labels for Priority Mail services will now receive $100 worth of FREE insurance. This is in addition to the special USPS shipping discounts sellers already receive—up to 35%—because of stellar seller status! In addition, FREE Delivery Confirmation is uploaded to My eBay when shipping Priority Mail or Priority Mail Express through eBay Labels.

The United States Postal Service offers free priority mail shipping supplies. These supplies include: priority mail poly mailers, flat rate envelopes, flat rate padded envelopes, boxes of all shapes and sizes. One may pick up these free shipping supplies at your local post office or visit www.usps.com and “order” them online with free delivery to your address.

eBay sellers are not automatically given the $100 worth of free insurance. Users must select to add USPS Insurance to the priority package. To do so, do the following:

From the print shipping label screen in eBay:

1. Select United States Postal Service as the Carrier
2. Select a Priority Mail Service from the dropdown list
3. Enter the weight of the package if necessary (Flat rate service does not require weight)
4. Check the option to “Add Insurance” (the page will refresh with ShipCover insurance selected as the default)
5. In the box that says ShipCover Insurance, change it to “USPS Insurance”
6. Package value will default to the price of the item
7. The page will refresh and you will see that insurance has been added for Free
8. Purchase postage and print label.

Should an item arrive damaged, the insurance provided by the USPS will protect you as an eBay seller. Work with the buyer to receive enough information about the broken item (pictures, if possible). Immediately refund the buyer for the damaged item, then submit an insurance claim online by going to www.USPS.com

Cashmere sells on eBay – even with holes!

Making money selling on eBay is not an easy task. New eBay sellers as well as experienced sellers are constantly seeking advice on what to sell on eBay. As an experienced eBay seller, I know that anything cashmere sells. Cashmere sweaters that are new with tags (NWT) can can sell for nearly $1000 depending on the brand name. Used or preowned apparel can easily fetch $50.

Cashmere sweaters for sale on eBay

But, did you know that cashmere, even with holes, sells as well! I recently sold a Burberry cashmere scarf, with holes from normal wear, for $46.95 shipped. I picked the scarf up at a local church sale for $1.

Holey Burberry scarf - $46.95

I was curious why anyone would be interested in a purchasing a holey cashmere piece and quickly discovered that crafters as well as interior decorators love the softness of this costly material. In fact, Pinterest is full of craft project ideas for recycling cashmere including:

·         iPad covers

·         dog sweaters

·         phone case

·         hair band / ear warmer

·         Christmas stockings

·         pot handle covers

·         infant leggings

·         scarves

·         bookmarks

·         doll dress

Search Pinterest for cashmere craft projects

Martha Stewart has many how-to videos on repurposing cashmere, including these: how to make a cashmere skirt and how to make a cashmere hot water bottle cover.

If you happen to have multiple cashmere sweaters with imperfections, you can group them in a lot to sell on eBay. I have successfully sold a crafters' lot of 6 cashmere sweaters in various sizes and styles. The imperfect lot sold for nearly $50 shipped.

Add anything cashmere to your BOLO (Be On Look Out) list while seeking items to resell on eBay. Mens and Womens Sweaters are often easy to identify simply by touch while shopping at a thrift store. You may also find these clothing items at garage sales, church sales and sometimes even Kohl's department store clearance section.

How to make thrift store shopping fun for kids

Some children, especially girls, enjoy shopping. But, do they enjoy shopping thrift stores? As a single mother of two children (son & daughter), I was challenged with staying home to watch the children, or bringing them along to shop thrift stores for items to resell on eBay. To make thrift store shopping (thrifting) fun for children, try these simple techniques:

1. Give the children a few key items to look for. For example, show them a certain name brand logo or a word on the designer label.

2. While in the thrift store, use code words that only your family knows. Instead of the children asking, “Hey Mom, can you sell this on eBay?” have them ask something unrelated to eBay. For example, “Would Grandma like this?” (even if it is a man's necktie).

3. Never, ever call Goodwill, “Goodwill”. Due to the stigma attached to shopping at Goodwill, refer to it as “Macy’s” or “Nordstrom”.

4. Reward children with prizes. For younger children, reward them with a quarter for each item that they found to resell. Pieces of candy (skittles, M&Ms, etc) may be used instead of quarters.

5. Some children are competitive. My children created the “hunting game” to see who could find the most items to resell. Reward the “winner” with a pick of his/her choice: restaurant for lunch, movie, family activity, etc. We all know that, in the end, Mom is the winner with the great thrift store finds!

6. Allow the older children to bring electronic devices to listen to music. My teenage daughter “works” better while listening/singing her favorite songs.

7. Allow children to push their own shopping cart. Or, as my son likes to do, have them hook the clothing in the back of their own collar.

8. Plot the family's thrift store travels with your own version of Flat Stanley. The Flat Stanley project was created to facilitate youngsters letter-writing by documenting the travels of paper cutout, Flat Stanley. Our "Flat Stanley" is a plush stuffed sock monkey, named Ralph. Whether vacationing or taking a mini road trip, we make it a point to stop at a Goodwill ("Macy's") or local thrift store to photograph Ralph, the sock monkey. We document our thrift store travels with Ralph on the Piece Of Scrap Facebook Fan page.

9. Limit the amount of time in the store. While an avid thrift shopper could spend hours browsing clothing racks and shelves filled with toys and household items, limit the time spent thrift shopping with the children to no more than 2 hours.

Enjoying family time is important … even if family time includes shopping thrift stores! To get started making money and selling on eBay, visit How to get started selling on eBay and making money. To get started shopping on eBay and making money, Starting an eBay Business For Dummies by Marsha Collier is a great read and voted one of the Best Books of the Year So Far by the Amazon.com editorial team.

How to get started selling on eBay and making money

Selling on eBay is an art that requires determination, self-control and perseverance. I started on selling on eBay in 2009 as a means of survival. The company I had worked for almost nearly 4 years was purchased by a larger firm. Due to a mass layoff of nearly 70 employees (some of them who had been with the company for nearly 20 years), I was out of work with limited unemployment compensation. As a single mother raising two small children, I knew that I had to persevere to make ends meet. I began selling things around the house. Much to my surprise, nearly everything I listed sold within a matter of months, some items for more than I would have ever imagined. Until eBay, I was one to avoid the local thrift stores for the stigma involved and the thought of shopping there, made me feel ‘dirty’. One afternoon, I finally psyched myself up to enter the Goodwill store. I quickly looked through the men’s shirts and picked out a couple of plus size polo shirts to list on eBay. I hurried home to list the pair of shirts as a plus size lot. Within a day or two, I had a bid. From that point on, I was hooked … eBay was not just a means of survival, it became an addiction.

Now, I am an eBay Top Rated Power Seller having sold over 12000 items worldwide as a single person operation. My children are older and fully support my passion for eBay. Click here for my techniques in making thrift store shopping fun for kids.

To get started selling on eBay, start by selling things from your home. Recently, I cleaned house and sold a few items that were collecting dust:

- Pinwheel quilt $108

- Holy Bible $36

- Outdated Vtech Learning Laptop $45

- Expired Ink Cartridges $31

Selling items you already own will build your confidence, experience and feedback rating on eBay. Once you feel more comfortable with selling on eBay, seek out items to resell including holey cashmere, coffee mugs and Halloween costumes. Check your area for garage sales, thrift stores and estate auctions.

For further guidance on starting to sell on eBay, eBay for Dummies is a great read for beginners!

How to remove permanent marker from thrift store shoes

While shopping for items to sell on eBay, it is clear that thrift stores tag items differently. For footwear including shoes and boots, many stores have a set price and do not price individual pairs. However, stores that mark up shoes based on a designer brand or condition (new in box), will often write the price with a sharpie permanent marker on the bottom of each sole. 

By accident, I discovered that a used a dryer sheet and nail polish remover works wonders in removing permanent marker stains from rubber and leather soles. This combination not only works well on rubber soles, but also on other items including my kitchen table!

Subscribe to my YouTube channel for more What Sold on eBay tips and tricks!

I have tried numerous techniques to remove the permanent marker label from the soles of shoes including: Mr. Clean Magic Eraser, Goof Off and Goo-Gone. More often than not, these household items will remove the stain, but also leave a mark or residue behind that makes the shoe less than marketable. In fact, Goof Off on rubber soles actually melts the material!

To remove permanent marker stains from leather soles, try fine grit sandpaper. This will rub the writing off making the soles appear slightly worn instead of stained by permanent marker. In my experience, I’ve found that the household materials (even nail polish remover) will take off the permanent stain, but may discolor the leather.

If all else fails and the price is still visible on the bottom of the sole, simply write over the price with permanent marker covering up the thrift store sale price. Then, try to wipe off the fresh permanent marker using nail polish remover. Sometimes, the fresh permanent marker will lift the older permanent marker writing with it and a little elbow grease. If that fails, simply add another digit to the front of the thrift store price to make it appear more expensive. For example, add a 2 to the front of the 4.99 price making it appear 24.99.

How to change the payment method for eBay shipping labels

eBay sellers wanting to change the funding source for eBay shipping labels can do so by following these simple steps (as of 7/5/2016). In this example, the seller is changing the payment information from one paypal account (email address) to another.

1.        To begin, log in to the Paypal account currently billed.
2.       Near the top, click the gear to access the user profile.
3.      Select Payments, then preapproved payments.
4.       Change the status from Active to Cancel by clicking on Cancel.
5.      Select Yes, to confirm the cancellation.

The next time a shipping label is printed from eBay, it will prompt you to enter a funding source. At that time, enter the new Paypal account credentials.

For further guidance on starting to sell on eBay, subscribe to my YouTube Channel: Piece of Scrap, for how to sell on eBay, what to sell on eBay, shipping on eBay and much more!