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Taxes was my husband’s forte until he became ill. This is my first year ever tackling taxes and am so out of my element. It was my (mis)understanding that if I did not sell more than $20,000, I did not have to worry about it. I was hugely relieved and hugely misinformed! I’ve just learned that is NOT true, so am scrambling to gather needed 2017 documentation from eBay and PayPal accounts as it applies to income/expenses.
First of all, do I even need it from both eBay and PayPal? I tried to find documentation on PayPal but the only option I see is printing off every single transaction for a year. Does PayPal have a brief summary with pertinent tax info and, if so, where the heck is it? And if there is a simple summary on eBay, I need that, as well.
I tried following directions from Google, but I never end up in the place it promises I will. So if someone has actual links they would share, they might keep me out of….I dunno…jail, maybe? I will be extraordinarily and eternally grateful!!
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–Yep, if you make more than $600, you need to pay taxes.
https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return–Paypal has your 1099. (You don’t get one from eBay). Just log in and download it from your account. You can call them if you can’t find it.
https://www.paypal.com/us/smarthelp/article/how-do-i-find-my-tax-form-1099k-in-my-paypal-account-faq919–We use a local tax accountant to make all this easier. He/she can help you file an extension if you arent ready to file. You do have to pay the taxes by April 15, based on your best guess of what you owe. But you’ll have more time to get all the info ready and officially do your taxes.
https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return-
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I followed instructions re getting 1017 tax document from PayPal, I received a message stating that I had no tax documents for 2017. I called PayPal and spoke to a customer representative in Ireland. She tried this, that, and a variety of things in an effort to access the document. She finally suggested the problem was my desk top and that I should try locating the document on a different device, which I have done.
I was given the following instructions: Click “Activity”, then click “statements”. On the dropdown menu, click “export”. Then click “financial summary”, then “annual”.
There is no “financial summary” or “annual” coming up for me regardless of what device I am using. I was afraid of that so I asked her if she would email me a link to the document I needed in case it didn’t come up on a different device. She assured me I would have it in my email this morning from PayPal. No email from PayPal.
Does anyone know if this information is available for sellers who earn LESS than $20,000? Could that be the problem? Where on earth are sellers who make less than $20,000 suppose to get the documents they need for filing taxes from PayPal and eBay?!
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Mystery solved!
In my 20+ years of social work I learned you can call the same office 3 X and get three different answers. So I tried calling PayPal again. Sure enough, the CS rep I spoke with explained that the tax document I needed would be available to those with a business account. Mine has been a “personal” account. Within less than five minutes after that two minute conversation, I had my document in hand.
🙂 Keep calling! Just wanted to respond to my own post in case someone else wrestles with the same issue.
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PayPal does provide a tax statement. Once you log in, click on Reports at the top of the page. Once in that page, find “tax documents” on the lefthand side. There are other tools there that will provide you with more detailed information if you need it.
PayPal will give you sales including shipping, shipping expenses, eBay fees, and PayPal fees.
For deductions, you will need to go through all your documentation to find other things that are tax deducible such as any shipping or office supplies, car mileage (whenever you travel to a thrift shop, auction, pickup, etc. you can deduct a standard per mile cost), toll fees, laundry detergent, cost of goods sold, etc.
I will go through my Amazon account a few times a year to find supplies I’ve purchased. I keep track of inventory purchases for my cost of goods. I save receipts if I buy something at a store, and so on.
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A. Lyric,
I would offer that since this is the first time you are doing the taxes on your own that you call a local tax office and ask if they have a check list (or you may want to see if there is one on line) of what you may need to have prepared for the 2017 tax year filiing.
Off the top of my head, questions that come to mind that you may want to ask when speaking with a tax professional or in your research:
if you rent verse own – what paperwork do you need?
if you were in school – what paperwork do you need?
what documentation do you need for selling on ebay?
is there any bank paperwork you may need to bring in?
did you buy or sell a car and what paperwork do you need for that?
did you have any medical expenses? If yes, what paperwork do you need?
did you make any donations and what paperwork do you need for that?Being that I am not an experieced tax person, this short list is by no means exhaustive. A tax professional would be able to provide you with a much more thorough list.
Best Wishes. -
In my opinion, you have 10 days to apply for an extension. There’s no penalty and you do not “set yourself up for an audit” if you do. Then you have until October to find someone to help you with your taxes. Take a deep breath, and go find some help.
On Facebook, there is the Accounting for Online Sellers group. AARP also offers free Tax Assistance.
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Absolutely, file for an extension. I’ve done that routinely for more than 25 years. My accountant (with one of the largest accounting firms in the country) recently told me that the risk of audit for late filers is actually quite a bit less than for those who file by April 15th. The reason is that the IRS hires a lot of seasonal auditors to handle the April returns. Once the bulk of that work is done, a huge number of them are laid off until the next year. By October 15th (the latest extension date), there are FAR fewer auditors working and the percentage of audits they can do is way less than earlier in the year. Avoiding audit risk is not the reason I initially started filing extensions but I have come to regard it as a nice perk of procrastination.
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But I do want to stress that you still have to pay your taxes by April 15, you are simply getting an extension to finish your paperwork.
https://turbotax.intuit.com/tax-tips/tax-extensions/what-to-do-after-youve-filed-an-income-tax-extension/L9jRDNKBN“The standard six-month tax extension allows you to file your tax return after the usual deadline. However, it doesn’t buy you more time to pay any taxes you may owe. That means that if you don’t pay your tax balance by the filing deadline (April 17 in 2018), you’ll get hit with penalty and interest.”
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You may consider subscription to GoDaddy Bookkeeping. The software will import your transaction history from eBay and Paypal (though I am not sure it will import from 2017? – anyone know). It will separate out expenses and make an estimate of taxes. You can then start accounting properly for 2018 (including use of the mobile app to capture mileage and on the fly expenses).
I do not have a relationship with this company. Best wishes, Daniel.
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Jay is right…you do have to pay your taxes by April 15th even if you don’t file your actual return until later. If you don’t know the amount to pay by April 15th and your income is roughly the same as the year before, you can always just pay the same amount of taxes that you paid the year before. I believe the IRS will accept that as a legitimate estimation of taxes owed.
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