Paying taxes as a 16-year-old using his parent's account - help! | Payments

Paying taxes as a 16-year-old using his parent's account - help!

Hello, my name is Timothy, and I'm a 16-year-old coin dealer who's been using his parent's eBay store to sell for the past several years. I have always found selling on eBay to be a smooth process, that is, until the threshold for the 1099-K tax form dropped to $600. I want to continue and grow my business on eBay, and to do so I'm willing to file my own taxes. Here's the issue: my parents don't want my sales taxes to get entangled with their taxes, so I would have to file them all under my name. I don't know how to do this, because I'm a minor using my parent's eBay account. Could somebody help me or at least point me in the right direction to finding out how to do this? If it helps, I do have my own bank account that my payouts get sent to.

If that was too confusing, here's my question in short: how can I (a minor) file my sales taxes from the 1099-K under my name when I'm using my parent's account?

Any help is greatly appreciated!

palmettonumismatics

115 View listings

Posted 3 years ago·Last reply 3 years ago

7 comments

simba6

·3 years ago

2315 View listings

The fact you were not receiving a 1099-K did NOT mean taxes were not owed.

Unavailable member

·3 years ago

Their profile isn't available.

If you are using your parents account and since you are a minor your parents are responsible for those taxes.

You do realize you have to be 18 years old to sell on ebay.

Underage user policy | eBay

Underage user policy overview

You must be at least 18 years old to be an eBay member.

A person under 18 can use an adult's account with the permission of the account holder. However, the account holder is responsible for everything done with that account.

Make sure you follow these guidelines. If you donâ€™t, you may be subject to a range of actions, including limits of your buying and selling privileges and suspension of your account.

mybigsale

·3 years ago

1110 View listings

@palmettonumismatics

A person under 18 can use an adult's account with the permission of the account holder. However, the account holder is responsible for everything done with that account.

Good for you. Don't quit. First and foremost, follow eBays rules so the account doesn't get permanently suspended. Which it sounds like you are doing. According to eBay's rules. You might need to change the bank account to whichever parent owns the account - whatever eBay requires. They should open another account just for eBay (if necessary). Once suspended by eBay I believe it is for a lifetime.

For the tax question, I would take the time to check with a Tax accountant for the correct solution.

Ask your tax professional:

1. As a child, can I claim the 1099 income on my taxes and my parents not claim it but document that I am paying the taxes on their tax form.

2. Can I just have my parents pay and I reimburse them for my portion of the tax? Your parents may not be able to claim you as a dependent on their taxes if you file a separate tax return and claim yourself. Your parents maybe in a higher tax bracket, meaning they may have to pay more tax on the 1099 income then you would if you filed separately.

3. Can my parents pay the 1099 income (be sure to include all expenses) and pay me any earnings (another expense) as a child doing the work, and then I file a return on what I earned?

I am not a tax expert and do not know which if any is the best legal solution. Just some ideas ... check with a tax expert for the best legal solution.

Good luck!