10-12-2021 12:38 PM
I just received a $1,485.00 Income tax notice for 2019 eBay sales of $3,228.00!? Is it me or does this seem a little extreme. Was reported by PayPal, I didn’t even know this was a thing!
Anyone else had a similar situation?
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10-12-2021 12:55 PM - edited 10-12-2021 12:58 PM
I would assume that includes penalties. Doesn't the notice include any details?
You need to file an amended return with schedule C, as already mentioned, where you can calculate your net income - you do not owe tax on the entire 3200. You should also file an amended return for 2020, if appropriate.
You can check both paypal and managed payments for 1099s issued last year, and probably just paypal for 2019.
10-12-2021 12:47 PM
All income must be reported whether tax is due or not. You need to use Schedule C to report the income and subtract your costs and expenses to find out whether you owe any tax.
10-12-2021 12:55 PM - edited 10-12-2021 12:58 PM
I would assume that includes penalties. Doesn't the notice include any details?
You need to file an amended return with schedule C, as already mentioned, where you can calculate your net income - you do not owe tax on the entire 3200. You should also file an amended return for 2020, if appropriate.
You can check both paypal and managed payments for 1099s issued last year, and probably just paypal for 2019.
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