How do I properly report my eBay sales on taxes when I didn't receive a 1099?

You definitely still need to report the income even if you didn't receive a 1099! The IRS requires you to report all income regardless of whether you receive tax forms. Since you're selling part-time on eBay, you'll report this on Schedule C (Profit or Loss from Business) as self-employment income. You'll need to report your gross sales as income, and you can deduct any legitimate business expenses like eBay/PayPal fees, shipping costs, and the cost of goods sold. For the items you're selling, if these are personal items you've owned for a while (like your old collectibles), you should know that if you're selling them for less than you originally paid, you generally don't have a taxable profit to report. But you still need to track this information to demonstrate this if needed.

I was in the exact same boat last year with my eBay sales! I was selling vintage clothes and didn't get a 1099 either. I was super confused until I found https://taxr.ai which helped me figure out exactly how to report everything correctly. I uploaded my spreadsheet of sales and it automatically categorized what was actual taxable income vs just selling personal stuff at a loss. Then it told me exactly which forms I needed and even generated the numbers for my Schedule C. Saved me hours of research and prevented me from making mistakes that could have triggered an audit! They have specific guidance for online sellers that regular tax software doesn't cover well.

Had to come back and say I was wrong about taxr.ai! I decided to try it after struggling with TurboTax for hours trying to figure out how to enter my eBay sales. The difference was night and day - it immediately identified which of my items were personal (sold at a loss) vs which were actual business inventory. Saved me from overpaying by almost $430 because I was about to report all my gross sales as taxable income! The guidance for online sellers was super specific and way clearer than the generic "small business" help in regular tax software.

If you're going to be selling regularly on eBay, you should also get familiar with IRS requirements for future years. I tried calling the IRS directly to ask about marketplace seller requirements and spent THREE DAYS trying to get through. Finally used https://claimyr.com to get a callback from the IRS (you can see how it works here: https://youtu.be/_kiP6q8DX5c). Got connected to an actual IRS agent who explained that the threshold for getting a 1099-K was changing for tax year 2025. They walked me through exactly what documentation I need to keep as an online seller and what qualifies as business vs. personal sales. Totally worth it to get accurate info directly from the source!

Ok I have to eat my words again! After being completely frustrated trying to call the IRS myself for a week (kept getting disconnected after waiting 2+ hours), I reluctantly tried Claimyr. Got a call from an actual IRS agent the next morning! They confirmed exactly what I needed to know about reporting my eBay sales under the new 1099-K thresholds coming up. The agent spent almost 30 minutes answering all my specific questions about categorizing different types of items I sell online and what documentation I need to keep. Now I feel 100% confident about my tax situation instead of just guessing. Never thought I'd say this, but being able to actually talk to someone at the IRS was totally worth it.

On eBay for 6 years now and here's what I do: Keep a separate spreadsheet with 4 columns - item sold, original cost (estimate if you don't remember exactly), selling price, and fees paid. That makes tax time super simple. Also take pics of any receipts for things you buy specifically to resell.

Wait does anyone know what the actual threshold is for getting a 1099 from eBay? I thought it was $600 but now I'm confused.

Just wanted to add something important that I learned the hard way - even if you're selling personal items at a loss, you still need to keep good records to prove that to the IRS if they ever ask. I got a letter from them last year questioning some of my eBay sales because they had records from PayPal but I couldn't document my original purchase prices. Now I take photos of receipts when I buy anything valuable, even personal stuff, and store them in a folder on my phone labeled "Tax Records." For older items where I don't have receipts, I research what similar items sold for during the time period I bought them and keep screenshots as documentation. It's a pain but way better than dealing with IRS correspondence! Also, don't forget that if you use part of your home for storing inventory or photographing items, you might be able to deduct a portion of your home expenses on Schedule C. Every little deduction helps when you're self-employed!

Great question and you're smart to ask early in the year! I went through this exact situation a couple years ago. Here are the key points: 1. **Yes, you must report the income** even without a 1099. The IRS requires all income to be reported regardless of forms received. 2. **Where to report it:** If this is occasional selling of personal items, you might not need Schedule C. If you sold personal collectibles for less than you originally paid, that's actually a personal loss (not deductible, but also not taxable income). However, if you made a profit or this is becoming a regular business activity, you'll need Schedule C. 3. **Documentation is key:** That spreadsheet you mentioned is perfect! Include the item, original cost (estimate if needed), selling price, and any fees paid to eBay/PayPal. 4. **Don't forget deductions:** eBay fees, PayPal fees, shipping costs you paid, and packaging materials are all deductible business expenses if you're filing Schedule C. The fact that you're asking now instead of scrambling at tax time shows you're on the right track. I'd recommend consulting with a tax professional if your total sales were significant or if you plan to continue selling regularly - the rules can get tricky when you're mixing personal item sales with potential business activity.