I am getting conflicting responses to this questions so im here to ask it on the forum. Will i need to deduct the refunds issued throughout the year and also paypal fees? My numbers arnt matching up with outright. I wasnt sure if the gross amount that is listed on the 1099k already deducted refunds and paypal fees.
Refunds are not factored in, nor are paypal fees, ebay fees, shipping costs. Those are ALL included in gross payments on the 1099K. You're required to deduct all those on your own.
Could anyone tell me how to duduct the tax by myself? When we are running business there's many expenses, how to report them to paypal and IRS? Can I report them to Paypal directly before I receive the 1099K form? Or I have to Work it out with IRS about tax return after I paid the tax? Thanks! And, I saw two statements on Paypal website, and that make me confused about the requirements to receive the 1099K form. The customer service doesn't reply. One said it just needs 200 transactions and the other says both 200 transactions and 20000 gross are required. Which is true? Thanks!
