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IRS Form 1099
Received IRS 1099 for 2024 items I sold on eBay. Not happy about that and seriously considering discontinuing selling items on eBay venue. I know this is not eBay fault that we now have to pay taxes on items we already paid taxes on when initially buying. This is over taxation on my opinion. I am retired 75 year old just trying to supplement my social security check by selling items I no longer need. Curious what other sellers have to say about this issue. Seems folks in my position (senior citizen - retired - military veteran) should be exempt from being taxed on this type sales.
4 comments
wooden_flower
Mentor1 year ago@hesston-98
You don’t pay income tax on your sales, you pay income tax on your profit.
If you are selling household goods, you probably sold them for less than you paid, so no profit. If this is the case, you record the 1099k as misc income on schedule 1, and again as misc deduction also on schedule 1.
You need to document how you determine that there was no profit. You might want to have a tax professional help with this.
lady_madonna
Mentor1 year ago@hesston-98
A person's age/working status/military status is not a factor when it comes to income tax payment requirements. Remember you can deduct your expenses from your income. when filing.
golfingaddict
Mentor1 year agoI just want to add. If you have a business, you may be able to be exempt from paying sales tax on some of your purchases for resale purposes. Your business licensing department will be able to help you with that
golfingaddict
Mentor1 year agoYou should understand how income taxes work. You pay on your income. It doesn't matter if you paid sales tax on them before.
The 1099-K indicates income and is filed with your yearly IRs income tax. You made money, the IRs wants you to report it. The 1099-K is required by law and eBay needs to report this if you reach a certain sales metric.
Sales tax and income tax are really two different things.