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”
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
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!
