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Taxes
does anyone know if the IRS is going to TAX the ebay community if we sell over $600 a year.
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does anyone know if the IRS is going to TAX the ebay community if we sell over $600 a year.
gosimus
Mentor3 years ago@robertbabcock53
< does anyone know if the IRS is going to TAX the ebay community >
The government passes the laws that require people to pay taxes. The IRS is the agency that the feds use to enforce what they wryly call your voluntary compliance.
You don't owe taxes if you sell $600 worth; that is, not necessarily. The $600 is just the threshold at which your sales get reported to the govt. You owe taxes if you make any profit. You can cancel out income by deducting expenses, and good luck with that if you don't file as a business.
mr_lincoln
Mentor3 years agoHi @robertbabcock53
The IRS does not tax anyone, Federal - State - Local governments do that. Regardless of your gross sales you need to report income from the sales and have the benefit of using deductions to reduce the tax burden if one exists.
We see this a lot where Sellers think if they do not sell above the 1099K threshold they do not have to report their sales on their income tax return. Its possible you would sell for a loss with deductions which only means you don't owe tax on your sales ...
Knowledge is power my friend, you can get some by downloading the IRS Schedule C and Instructions and learning what you can and cannot deduct on your income tax when reporting your sales.