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I exceeded the $600.00 selling amount on eBay.
I exceeded the $600.00 selling amount on EBay. I was asked to provide my SS number and I did. I sell less than $1000.00 a year on EBay. Should I have done this? What are the tax ramifications for doing this?
1 comment
mr_lincoln
Mentor2 years agoHi @mazh
Yes you are required to do that. With regard to ALL internet sales venues and the IRS 1099K form, the $ 600 may get bumped up to $ 5000 sometime this year but at the end of the day you need to report your sales and pay taxes on the actual income from those sales (if there is any).
I use the IRS Schedule C which allows me to use deductions against the gross income from internet and other sales. This helps to reduce the tax burden on profits and the actual amount of reportable income.
If you use an accountant or tax professional to prepare your tax returns you should be in contact with them and take their advice on how to file based on the amount of sales you wind up making.