PayPal Tax Forms Question for the vets

scatttcat · 2020-07-06T01:08:31.000Z

Hi everyone, So I am by no means a large seller, only Ebay and BrickLink, but with my current numbers this year I am thinking I will break 20k in PayPal for the first time and therefore get a 1099 from PayPal. This leads me to some questions about how that is calculated and about charging tax that I am hoping some Veteran's can help me with! 1) When PayPal tallies up this gross 20k and decides if you get a 1099 or not, are they tallying totals with or without their fee? Also same question with that automated eBay tax that is charged. I see PayPal's fee & Ebay's automated tax immediately deducted on each transaction so I assume what is left of gross income is what is used towards the 20k total? Or am I mistaken? Basically you get $20 in PayPal. eBay deducts their tax and PayPal deducts their fee and you are left with $19.50 (for simplicity sake). Does that mean the $19.50 is used toward your 20k PayPal limit? Or the original $20? 2) For sellers who charge tax via eBay, does the buyer see that as a different tax from eBay's state tax?? Every time I have bought something I really don't think so, but I can't remember forsure. I remember correctly, there is just one line item a buyer sees for tax charges (meaning my tax + eBay's tax are combined). Is this correct? Thanks for the help!