Feeling forced to stop being a small seller and already having withdrawls!!! :)
This week has been a true bummer. I am used to gearing up to visit garage sales, estate sales etc. and get the rush of finding a few treasures to re-sell. I swear it's in my blood. 🙂
Accountant says we owe double what we have already paid in quarterly tax payments!! Seems that my small business on e-Bay, combined with my husbands 1099 has IRS taxing my social security.
Madness at it finest. I have had to make the decision to stop selling (at least for a couple of years when he too can retire) and it is tough. This had me getting out of the house, finding and selling, even if it was not a ton of money I loved it. We intended to use the profits after expenses for a vacation. Now the IRS will get my hard earned money instead.
I had about 350 listings at any given moment and Monday ended over 200 of the low priced items that I will probably just donate and write off. The remaining listings are drastically reduced and will after the markdown sale ends will also be donated.
I just hate this as I just wanted to supplement my retirement earnings since I was a stay at home Mom for years and don't receive a big amount each month. Once again, the little guy looses.
So much of my week was spent checking my account, shipping solds, searching for sales etc. and the routine helped kill my down time while feeding my Entrepeneur spirit. Bummed, just bummed!! Thanks for letting me vent. All the best to all sellers
redlinear
·3 years agoI wish my taxes doubled last year. That would mean my profit doubled.
joels-retrocade
·3 years agoYou should continue to use eBay to make up some of that money lol. You can declare so much on your taxes to reduce your income. Take it as a lesson learned this year and study up for next year!
anasazirose
·3 years agoYes, as nobody's perfect said, deductions. If you drove to yard sales to get items for your business, the mileage is all deductible. If you drove to the post office, that's deductible. The mileage deduction should help a lot.
Printer ink, printer, labels, a portion of electricity(?),
Also, you don't have to be totally done, can you HOST a yard sale ? Also, if you donate what you bought to sell, doesn't that item become a deductible loss?
toomuchstuffagain35
·3 years agoEven if you have pay more taxes than you thought due to SS being taxed, xx% of something is better than 100% of nothing, right? And it's only for a couple of years until he retires?
oldwestcoins
·3 years agoSounds like you are not expensing items against your profits. I am not sure why you would need an accountant as one of the tax software companies such as H&R and Turbo Tax do everything for me. Have you tried using the free app WAVE? It integrates with eBay and tracks your costs and imports all of your eBay transactions, including from a bank account, if you add that option. It's very user-friendly. It will generate end-of-year reports, etc. I believe what you be feeling, as at some point I ran through the same issue, is understanding that you are running a business and not a garage sale. It's okay to have expenses: travel, gas, utilities, office expense, cost of goods, etc. Just some suggestions. I wish you luck.
donsdetour
·3 years agoEverything for you including making sure the tax system was not made simple.
They lobbied against such and won.
19 billion made by folks doing taxes for other of course is the reason they want it complicated.
nobody*s_perfect
·3 years agoOuch, what an unpleasant surprise. Maybe you should get a second opinion: Whoever helped you prepare your quarterlies should have seen this coming.
Social Security has a lot of helpful pages about what gets taxed, in what age brackets. And the IRS has some helpful pages about filing your 1099-K; take a look at Schedule C and its instructions to make sure that you didn't miss any big deductible expenses (fees, postage, mileage, cost of items, etc.).
blingfling123
·3 years ago"Accountant says we owe double what we have already paid in quarterly tax payments!! Seems that my small business on e-Bay, combined with my husband's 1099 has IRS taxing my social security."
Sounds like your and your husbands' businesses are successful then. Why stop?
Adjust what you are paying quarterly and continue to prosper and still go on vacations.