eBay

mosmom25-6 · ‎12-29-2021

This is my first year claiming my earnings. I average around $3,000 every 90 days. Is that enough to file? I have 4 kids so im hoping to get unearned income but i cannot qithout claiming an income i believe. I have always let my ex file as head of household but now were divorced, i am trying to di this myself. Any advice? How do i even get the forms from ebay? Sorry, i so new to this!!! Thanks

lamber9347 · ‎12-29-2021

@mosmom25-6 This is not the place for you to get the assistance you require because it is all tax related. You need to contact a company such as H&R Block for your taxes, especially because you have no understanding about how to proceed. They are not high priced and will not only prepare your taxes completely for you, but offer correct advice and do everything. Hopefully you will learn and be able to take over for yourself in time but as this is your first year on your own, you need proper guidance and more than a little hand holding. Best of luck to you....

7606dennis · ‎12-29-2021

My advice is to consult a tax professional. There is no way that we could possibly advise you on these boards.

"It is an intelligent man that is aware of his own ignorance."

nobody*s_perfect · ‎12-29-2021

Oh yes, that's "enough to file." You are supposed to file even if you just clear a few hundred dollars per year.

Your eBay income as reported on Schedule C will make you eligible for the Earned Income credit. You will need to fill out Schedule C and SE as well as whatever they're calling the EITC forms nowadays. The IRS instructions will for all of these forms will help you understand how they see your allowable deductible expenses and what credit you will get. If you have dependent children that you declare as your dependents, then your credit is increased per child.

You get the tax forms from the IRS web site, not from eBay.

IRS has a lot of useful Help pages.

https://www.eitc.irs.gov/partner-toolkit/basic-marketing-communication-materials/eitc-fast-facts/eit...

nobody*s_perfect · ‎12-29-2021

Don't use H&R Block. Many of their staff are not well-trained, and are clueless about helping self-employed individuals. There must be better-quality help out there. Start with the IRS's own Help pages.

jayjaspersgarage · ‎12-29-2021

Yes, $12,000 per year is $11,999 above the amount when you are supposed to include on-line sales with your taxes.

#1 - Sell your rings to a jeweler. They will most likely still take your information but you will have cash in hand.

#2 Have a tax preparer handle this and go early so you can gather up the information they ask for.

#3 Be careful to watch who gets tax credits for any minor children. Another reason you want to hire a competent tax preparer.

bearswatching · ‎12-29-2021

Listen to @ nobody’s perfect . Do not use H&R Block. Total amateurs. Find a CPA or an Enrolled Agent. The fact that you are making $3,000 every 90 days and had no idea you needed to file means you are already in trouble!

nobody*s_perfect · ‎12-29-2021

Good advice. I was audited by the IRS the first year that I declared my daughter as a dependent back in the 70's, but one glance at the separation agreement was enough to satisfy the auditor because it specified that I would be the parent who declared her as a dependent. (Pretty sure arrogant ex didn't even read it.)

12345jamesstamps · ‎12-29-2021

When you have high sales you always need an accountant...I do H&R Block..

Keep all receipts and do a small business platform.

Deductions in a business plan will 0 what you owe.

Deductions can be a lot of things.

I did it for 3 years.

Key is having a paper trail for accountant.

It doesn't cost more.

nobody*s_perfect · ‎12-29-2021

@12345jamesstamps wrote: ... Deductions in a business plan will 0 what you owe....

An individual who is eligible for the EITC might end up with more $ in their pocket if they deduct less than their full allowable expenses, since the EITC credit is based on their net earnings.

Now that I have seen two recommendations in this thread for H&R Bloc, I might have to re-think the negative anecdotes that I have heard about them. I have always just used TurboTax, which I find very user-friendly.

iart · ‎12-29-2021

Consult an accountant, YES!

$300 or $3000 (X4), you are supposed to pay taxes on your profit.

I suggest that you go to an accountant this year. Do it early before the April rush. Explain exactly what you do, ask a lot of questions, study the forms they fill out. Become confident enough in what they did that you can do it on your own next time. (You might find that you prefer going to a professional - most will represent you if you are audited).

You should be aware of a couple things. First, you might be able to write off gas mileage, use of your home, utilities, etc. You might also get a penalty this year (not sure) as you probably should have been paying taxes quarterly. (These are among the questions to ask an accountant).