The $600 is NOT a threshold for reporting your on-line income for your taxes! So tired of tax cheats thinking they never had to report their gross sales less expenses all these years. The 20K limit was the amount third party companies had to use to determine whether to send out a 1099K to the sellers. It never had anything to do with you owing taxes. Now the payment processors have to send out 1099Ks to anyone selling over $600 in cumulative sales across all platforms.
This is not as bad as it seems to many people who have never filed legitimate tax returns while selling on-line and at flea markets. Once you deduct your expenses from the sales and the net sales are added to your gross adjusted income you might pay $100 extra in taxes. The amount could actually drop your tax liability.
People are over-reacting to this new requirement. Just save every receipt for supplies, deduct the percentage of your home used exclusively for ebay and be sure to include the $1,500 you donate to church each year. My church never gives receipts according to my accountant. And yes, you get to deduct the same percentage of your utility bill as for your home office. Hint: Use the largest room in the house for your ebay office. Don't use a niche or hall closet. Just be sure to use it ONLY for the business. I have tall ceilings so I base my percentage of space on cubic footage because it takes more energy to heat and cool it.
