Anybody else get an unexpected 1099K from PayPal in early Feb for 2017 eBay transactions? Like many others I had already filed both fed and state. Old rule was that you would not get a 1099K for something like under $20,000 and hundreds (maybe 200) of transactions. Now in MA and VT, starting tax year 2017, you get a 1099K for anything over $600. Mine was $900 gross amount on 38 transactions, which includes transactions that were refunded and, of course, all the fees and postage. The gross amount minus the expenses and refunds is $405. Um yeah, sort of why I stopped bothering with eBay last summer. NOT SOON ENOUGH!
MA wants you to file the "taxable amount" on Schedule X but has no place to show the deduction of fees, postage and refunds from the 1099K gross amount. Not to mention that the household goods had only depreciated. So the taxable amount is actually 0. But I have no records going back to the original purchase to prove that. IRS says something to the effect of "we don't care about your online yard sales". They did not get the 1099Ks for the new $600 limit.
How are other casual eBayers in the "special" states handling this? Are you going to amend state and federal, which requires entering each individual item sale basis, cost, sale amount and offsetting expense?