Is it possible the $75,000 gross sale also included buyers tax and shipping and your $25,000 counting only was the money in your hand? Either way, even if was $25,000, you would get 1099. Suggest you hire an accountant to file tax.
Does anyone use Poshmark?
- Thread starter kenzibray
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Thank you! Yes, your right the $75,000 is gross. I had my accountant just e-file my taxes yesterday. I didn't receive my PM 1099K form until today. I emailed him and he told me to send him the 1099K and he will look it over. I just don't want to be audited.
I never start my taxes until March because the paperwork might change before then. 1099s don't have be released until January 31 and K1s aren't sent until March. On top of that, often there are adjusted documents sent out later. This is one of the reasons accountants get slammed.
Yes, I normally don't start my taxes until March too, but someone got my SSN and DL in a security. I was told it's better to file asap, before someone tries to use my SSN and submit taxes under my name.
I know I'm so upset! Yes I put a lockdown on my SSN and credit freeze on all three credit sites. I'm not worried about my financial reports. I worry about Identity theft.
1099-K includes all crazy cancellations, you know when someone buys and cancels at the end of the day before the item is shipped.
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Yes, it's so confusing. I sure hope my accountant can take care of this. He had just filed my taxes on Wed. I did not receive my 1099-K until yesterday. I sent it to him last night and he said he would look into this.
I also had over 10 cancelled sales in 2023 and it shows those sales are included in my 1099K. This is not right! I was never paid, since the sale was cancelled. I email PM CS, but I'm sure they will not be able to fix this.
I don't think they can fix it. AFAIK every selling site does it the same way. Cancelled sales are considered part of the gross. If you file as a business, you can deduct cancellations and expenses.
Even if you don't file as a business but rather report it as a sale of personal property (it is more time consuming though as you will have enter every sale transaction separately on the tax return - similar to stock sales), you can also deduct your cancellations and your selling expenses (aka Posh commission, sales taxes that Posh pays on your behalf). You are taxed on the profit your make on your sales - not the gross amount (provided you can substantiate your cost with appropriate documentation/receipts). You will pay capital gains tax on the profit that you generate in such case. If you report it as a business, then it would be part of the ordinary income.
I had tons of those, my Chanel bag was purchased and cancelled multiple times, like a cancel magnet, maybe because it's expensive. One lady was buying Fendi watch last Summer but she asked to cancel 3 times because of the wrong payment method and repurchased each time. So it's like 4x sales gross that month, but in fact it was the only 1 order that was shipped.
Selling platforms send 1099-K to IRS only if's over 200 sales AND over $20000 for 2023 tax year. For 2024 it will be any amount of sales over $5000, that is unless they change again.
The 1099K reporting is also based upon different states requirements, and there are states that impose lower reporting limits. For example, those residing in DC, MA, MD, MS, VA, VT, IL, AR, NJ will receive 1099 even though their gross sales were lower than 20K/200 tranactions required for federal reporting (as different thresholds will apply). Having said that, it is best to check all of your sales platforms to see if you were issued 1099K and consult a tax expert.