Why does the Flipwise tax report show a different amount for gross sales than eBay's 1099-K?
Flipwise simplifies tax preparation by helping you log and track your reselling data, but it is not a substitute for dedicated tax software or professional advice. This article is for informational purposes only and should not be considered tax advice. We strongly encourage you to consult a qualified tax advisor when preparing your tax return to ensure accuracy and compliance.
Flipwise uses the exact same formula to calculate its annual gross sale amount that eBay uses for its annual tax reporting. That formula is:
- Total sale amount plus buyer paid shipping and handling for each order
- All revenue from non-canceled orders is included, even for orders that were partially or fully refunded
- Revenue from canceled orders that were refunded is excluded
- Buyer paid sales tax is excluded
eBay calculates your 1099-K annual gross sales amount using an internal “payment processing date” for each order—the date when eBay processes the order payment. This date may differ slightly from the actual order date or the associated transaction date. Notably, this “internal processing date” is specific to eBay and is not shared with third-party applications like Flipwise via the eBay API.
In contrast, Flipwise determines your gross eBay sales based on the actual order date and tracks all other revenue and expenses using the exact date of the transaction (these dates are based on your local time zone, which can be configured via your Flipwise account page).
As a result, some orders placed near the end of a tax year may be included in the following year’s 1099-K report from eBay, while others from the previous year may roll into the current report. Because of this, the gross sales figure reported by eBay on the 1099-K might not exactly match the “gross eBay sales” figure on your Flipwise tax report. However, small differences are not a cause for concern. As long as you use a consistent tax reporting method each year, all sales will be properly accounted for over time.