New Ebay User - I have a couple questions regarding taxes and sales

[auslar-51]

Hello, 

     Please forgive me for my ignorance. so I have a couple questions regarding selling on Ebay and Taxes. 

I live in CA and I made around $800 total with less than 200 sales.  I am a private seller, who only sells to individuals in the US. I sell books (after reading them), leftover pieces from a hobby I partake in (sculpted plastic bits and sometimes magnets), and random junk I find in my home.

1) I never received a 1099-K.  So do I just report the $800 as income on my 1040 and 540 forms?

2) From what I have read, Ebay collects sales tax for me and sends it to the appropriate tax collectors. Assuming I have paid all of my Ebay and Paypal fees, do I need to worry about paying the state or Fed more?

Thank you for your time, 

- A

[luckythewinner]

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@auslar-51 wrote:

I live in CA and I made around $800 total

I never received a 1099-K.  So do I just report the $800 as income on my 1040 and 540 forms?

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When you say you "made $800"? What exactly do you mean? 

Are you saying that your gross sales were $800, or that after calculating all your costs and expenes you made $800 in profit? 

[rock.star]

You only need to report as income any profit you made .

It seems most of what you sold was sold at a loss.

[brya_fonta]

If you buy a book for 10.00 & sell it for 9.00 you made zero profit.

If you buy a book for 10.00 & sell it for 20.00 you've made a profit.

[auslar-51]

Gross sales. 

[creativecrisis]

Here's a fact sheet from TurboTax that offers some guidance. https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-tax-filing-factsheet-for-ebay-sellers/L...

In addition, it's probably a good idea to check with a tax professional or CPA about whether your online sales should be reported as income. If you have a California sales tax permit, you're required to report (to the state) the CA taxes eBay collected and remitted on your behalf. 

[auslar-51]

Gross sales. 

[auslar-51]

Thanks I'll take a look at this. That brings up another question. Do I need a sellers permit to sell on ebay in my city? Oh man, what a can of worms I have opened. 

Thank you again, 

- A 

[creativecrisis]

When you say "seller's permit," are you talking about a sales tax permit? Here's a link from the California tax department that explains who is required to have one: https://www.cdtfa.ca.gov/taxes-and-fees/faqseller.htm

If you plan to keep selling on eBay, it would be a good idea to sit down with a CPA and find out how to properly set up your business, and what records you need to keep, and all that .. or whether your eBay sales even need to be treated as a business for tax purposes. A CPA can clarify all that for you.