ive made a bit of money on ebay (we'll say un der 10,000$),must i report this to h&r block?

Question

must i tell the people at h&r block when i go to get my taxes done,also,if ive made 22,000$last year,what kind of tax bracket does this put me in,we it hurt me to tell h&r block about the money i made on ebay when its time to file?

Answer 1

You must report ALL income on your taxes.

To be honest, if you add the 10K to the 22K, you are most likely underwithheld for the year and will be facing some penalties. As a seller on Ebay, you are operating like you are self employed. You are technically supposed to be reporting this income and making estimated tax payments during the year.

If you don't report it but get flagged for an audit, there will be problems. Does anyone know if ebay turns over sales records to the IRS???

Answer 2

yes and yes. If you were just selling a few of your old things on ebay, you probably would not be making a profit so wouldn't be liable for taxes. But if you're talking thousands of dollars, it's a very different story.

I'd suggest going to a CPA this year instead of H&R - they'll be in a much better position to advise you on what you can deduct and what records you have to keep.

And as to the responder who says it's hard to keep track of all the income and expenses - well, that's what businesses have to do.

Answer 3

I know that they once were trying to figure out how to tax people on EBay, but I don't think that they have any concrete tax laws on it yet. It would be hard to figure what someone's actual profit was. In considering travel time, shipping time, packaging time, shopping times, and materials, not to mention personal time taking pictures, listing, and so on....I've never made as much as you have on Ebay, but I figure if I wanted to itemize my time and energy...I'd break even for tax purposes. The government just can't stand us "little" people trying to get ahead in this society without getting their hands on it.