How eBay sellers find total sales to date

As an eBay seller, have you ever wondered what your sales have been since you first started selling on eBay? Do you know the total number of sales? Although a bit hidden, eBay offers this information on the Seller Dashboard for sellers who have a store subscription. To view the total number of transactions and sales to date, do the following:

1.     Click on Seller Dashboard on the left side menu.

2.     Scroll down to the very bottom of the page to view “Your totals to date”. On the bottom of this page, are total number of transaction and sales.

The default is set to USA sales only. To view global sales to date, scroll up to the top of the page and change the region value to global.

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. Visit the Pinterest board, How to Make Money Selling on eBay for more information on what to sell on eBay. For details on what this Mom has sold on eBay, visit the Pinterest board: I sold THIS on eBay!

How Amazon Sellers Generate an Annual Sales Report

It is against the law not to report all income to the IRS. Whether selling on Amazon is your primary source of income, or simply a hobby, all income should be reported. The Annual Sales Report within Amazon may be used to calculate gross receipts as reported on tax form 1099-K. To generate the sales report:

1. Log in to Seller Central
2. Click on Reports, Payments
3. Date Range Reports (far right tab)
4. Click “Generate a Report”
5. Report type = Summary
6. Enter Custom Date Range 01/01/2016 – 12/31/2016
7. Click Generate
8. 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.
9. This annual sales summary is useful in calculating gross receipts:

Seller fulfilled product sales + FBA product sales + Shipping credits + Gift wrap credits + Promotional rebates + Sales Tax

Only online sellers who exceed the IRS thresholds will receive an IRS Form 1099-K from Amazon. To generate a tax form 1099-K from Amazon, visit How Amazon Sellers Find Tax Form 1099-K.

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 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.