In 1789 Ben Franklin penned that, “in this world nothing can be said to be certain, except death and taxes,” which still rings true to this day. Some people may think that it is odd to compare death to taxes, but for many, filing taxes can be a very traumatic experience, especially for those running their own business for the very first time.
The pandemic has pushed far more people into the reselling world than in any other time in history, and tax time is fast approaching. For many resellers, this will be their very first time filing as self-employed, or as their own business entity.
One good thing, though, which will be helpful for those reselling on eBay, is the ease of accessing all your needed data. eBay has simplified much of the process and made available simple to follow forms, along with directions on their use. So today, I thought it would be helpful to go over where you can access and download all of your sales, fees, and tax totals that you will need to file your taxes.
Even if you plan on using an accountant you will still need to access these totals. All of your needed information can now be found in your Seller Hub under the Performance tab.
Once you are on the Performance tab, you just need to click Sales on the left side of the screen, and you will be able to select your sales data, based on the length of time you wish to view. It can be searched by the day, week, month, and year, which makes it easy to see your entire yearly figures all at once.
This is a great improvement over prior years, which required you to download many different documents from various places, which may have included the need to download some reports through PayPal as well. Now, thankfully, it is all in one place.
To see the entire prior years’ worth of data, you can simply select Last Year and then click the Generate Report button. This will produce the report, which can also be downloaded into a spreadsheet, such as Microsoft Excel, Google Documents, or any other spreadsheet application you may be using.
One thing everyone should be aware of is that some of the totals shown on eBay may be slightly different from what your downloaded spreadsheets may show. I found a few totals that were off $20 to $30 between the online version, and the downloaded version. From what eBay has stated, the downloaded documents are all correct. The online version simply may have delayed information that was not yet tallied into the report.
Another thing to keep in mind is that the ID names and column titles for some of your totals may have changed since last year. You can find a list of all the changes here on eBays Hub breakdown page under the section Sales and selling costs reports details.
All of the changes should be pretty easy to understand as well, because (in most cases) the new names or titles make far more sense than what eBay used in the past.
eBay’s new sales report does a great job of breaking down all aspects of your sales. It also includes a lot of never-before-seen information, such as repeat buyers’ percentages, so it is much more useful than just for tax purposes.
If you scroll further down the sales report, you will see a breakdown of all of your expenses. The totals are separated by the type of expense, such as shipping labels, store fees, final value fees, and etc. The downloaded version breaks these all down into columns as well, so that you can easily get any total you need. The expense breakdown is a great advancement over eBay’s prior attempts at this.
I did find it odd that some of the breakdowns found in the online version are reported slightly differently on the downloaded version, but it was fairly easy to figure out the information needed. There are two different columns on the downloaded version that you should be careful with.
One column titled: Shipping and handling paid by buyer to you, and another column titled: Shipping labels cost (Amount you paid to buy shipping labels on eBay), can be confusing to some. This is due to eBay showing both what the buyer paid you for their labels, as well as what you yourself paid for labels. Those numbers do not need to match at all. The number that matters for tax purposes will always be the amount you paid for taxes, since that will be total amount of shipping label you actually purchased.
The only other form you should need would be a copy of your 1099-K form, which can easily be found under the Payments tab in your hub. On the Payments tab, you can either click on Taxes on the left side or click on the highlighted header, to instantly pull up the report for down.
So, whether you are paying an accountant to do your taxes, or you plan on doing them yourselves, the process of gathering the required data has never been easier than now.
Disclaimer: The information provided above is to offered in order to help sellers obtain information they may need for tax-filing purposes and is not in any way meant to offer tax or legal advice.