Does Ebay or Paypal report our sales to IRS?

[janies_bizz]

I just started selling on Ebay and Im a little worried about reporting my extra little income. Its not that much but is there like a certain amount that I have to make for them to report or how does this work? Any help would be appreciated. Tax time is near.

[bostongrammy]

...
That is not exactly true, ebay is REQUIRED to REPORT if you have over $20,000 and over 200 payments,

They MAY report anything and everything and I wouldn't be surprised if they do. ....

If you are going to correct people, then get your own facts straight. eBay is not reporting anything to the IRS. Paypal and other similar financial intermediaries are affected by the new reporting requirement. eBay doesn't handle your money, and has no such reporting requirement.

[stefs_clothing]

Same here, for me. I do not owe anything for my 2010 eBay sales. I didn't have a profit.

Yep. On paper it doesn't look like I made a profit, mostly thanks to the mileage deductions 🙂

[kansas_gal06]

51¢ per mile for 2011

[stefs_clothing]

51¢ per mile for 2011

Awesome, that's 1¢ more than last year! It adds up 🙂

[ladywith380]

you dont have to give them your ssn if you have that limit, i never gave them mine!

[ladywith380]

you dont have to give them your ssn if you have that limit, i never gave them mine!

sorry didnt know it would post this right here it was for way earlier! sry

[komokwa]

sorry didnt know it would post this right here it was for way earlier! sry

Then you should have hit.....reply WITH QUOTE......but it still shows up as the last post entered.

[janies_bizz]

😐 WOW, I started this thread almost 2 years ago and still havent got an answer. Just kidding, lots of good info here but its too little too late. I quit selling and am back on the buying side. Good luck to all of you out there with the new tax stuff going on. If I do decide to sell it wont be much and it will definitely be under 200/20,000
Janie

[pacificnwvintage]

I have a paypal debit card...So yes, they have my social..Bummer on my part...

paypal would not issue me my debit card with out my social..

Without debit card.......you will never need to give them your social..

Unless you pull over thousands of dollars in sales.

Hope this helps..

[komokwa]

😐 WOW, I started this thread almost 2 years ago and still havent got an answer. Just kidding, lots of good info here but its too little too late. I quit selling and am back on the buying side. Good luck to all of you out there with the new tax stuff going on. If I do decide to sell it wont be much and it will definitely be under 200/20,000
Janie

Good luck with your buying.
Stop back in from time to time and see how your post is doing.

[annah6512]

Just a piece of advice to you all

It is good that you are saving reciepts (for those of you who are), however, you can not claim shipping exspenses on your taxes if you are shipping to a "customer"


You can only claim shipping expenses if you paid said fees to have an item sent "to you" to sell

Then it becomes an exspense


I own my business and have a business license in my city and I also do my own taxes.though I'm no expert 🙂

[bostongrammy]

... you can not claim shipping exspenses on your taxes if you are shipping to a "customer"

You can only claim shipping expenses if you paid said fees to have an item sent "to you" to sell

Then it becomes an exspense

I own my business and have a business license in my city and I also do my own taxes.though I'm no expert 🙂

The bolded part is correct.

Shipping merchandise to buyers is a legitimate business expense.

[stefs_clothing]

As applies to eBay sellers, the cost of the items we sell, the packaging materials and the shipping costs are deductible.

Shipping can be listing in Section V of your Schedule C and included in the 'Other expenses' total on line 27.

[kansas_gal06]

Not to put words in your mouth, annah, but did you mean if the buyer pays shipping then sellers can't deduct it as an expense? I'd agree with that.

However, if a seller gives "free" shipping on thier items, they can definitely deduct the cost of shipping as a business expense.

[bostongrammy]

Not to put words in your mouth, annah, but did you mean if the buyer pays shipping then sellers can't deduct it as an expense? I'd agree with that. ....

You'd be wrong.

Even in a listing that doesn't have free shipping, it's the seller who actually physically pays the USPS for the shipping.

The buyer pays for S&H as part of a single PayPal payment, which the seller receives. The seller then uses part of that payment to pay for postage. The IRS sees the whole PayPal payment as income. Then on your taxes (probably Schedule C) you deduct various allowable expenses such as packaging, postage, etc.