Do you have to pay taxes on money people send to you on your paypal then you transfer that money to your bank?

Question

i was just wondering cause my sister told me that. but to me it doesnt make sense but im not sure.

Answer 1

When you say "people send to you" what do you mean?

Is this money gifts from friends or relatives? Gifts from one person totally less than $11,000 a year are not taxable. And gifts are not ever taxable to the recipient (you).

Or is someone buying something for you. If you are operating a business that sells things than your income may be taxable.

But trust me, the IRS is not going to find out you sold one $20 pair of shoes on Ebay unless you tell them.

Answer 2

It depends on what it's for. If you are selling on ebay as a small business, then yes. If you're selling on ebay just to get rid of some of your old stuff, you're probably selling it for less than you paid for it, so no. And if somebody is just sending you money as a gift or something like that, no.