What does the 1099-K mean for me if I sell online?

If you receive a 1099-K, this means that your payment processor, such as PayPal, reported your online sales amounts to the IRS.

The 1099-K reports your "Income" but you are actually required to pay tax on your "Profit".  Without record keeping for any deductions these numbers would be the same and you'll owe income tax on the full amount!  

By using GoDaddy Bookkeeping and importing your data automatically from sources such as eBay, Etsy or your credit card, you'll be recording your expenses to decrease the overall taxable amount. Thereby putting more money into your business, and only paying the money you owe. 

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