I do not anticipate making any more than $200-300 a year. However, I am a minor and the PayPal account is in my parents' name. So, do I (or my parents) have to report this small income from PayPal as taxable income?
2007-04-28 14:49:33 · 4 answers · asked by brdc 2 in Business & Finance ➔ Taxes ➔ United States
This income would be considered self-employment income. If you make over $400 a year in self-employment income, you have to report it. If you make less than that, and don't have other income that takes you above the filing limit for your filing status, then you don't have to file.
2007-04-28 17:40:02 · answer #1 · answered by Judy 7 · 1⤊ 1⤋
All US citizens must report all income from any source world wide. That said, there are hundreds of thousands of people selling things on E-Bay and the such without reporting that income. For the most part the IRS does not care because it is a very small amount and in reality you would have a lose any way after your expenses. You know about depreciating a portion of your computer for "e-bay business expense".
2007-04-28 23:00:43 · answer #2 · answered by ? 6 · 1⤊ 1⤋
Only if you sell to someone in your state.
But most states pay no attention to Paypal or Ebay unless you have a business set up and a state sales tax license.
2007-04-28 21:58:00 · answer #3 · answered by Anonymous · 1⤊ 1⤋
You don't have to report taxes from Paypal unless it is over $500.00 per year for federal and $1600.00 per year for State, http://www.voteprimous.com
2007-04-28 22:00:38 · answer #4 · answered by Anonymous · 1⤊ 2⤋