Do people pay taxes when they sell something on eBay?

Answer 1

It depends. If you're just selling some of your old stuff, there are probably no taxes due since you are probably selling them for less than you paid for them, so don't have a profit. If you happen to have say a valuable antique and you make a profit on it, then yes, you are legally required to pay tax on the gain.

If you make a business of it, you buy things to sell on ebay and then sell them, then yes, you are required to pay income tax on any gains.

Answer 2

I have to collect sales tax if I sell to someone from my state, even on Ebay. When I buy something, I have to pay a tax to my state if I bought from a company. If I bought from an individual just trying to earn spending money, I don't have to pay a tax. I got that in writing form my state tax office.

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Answer 3

Some sellers collect sales tax, but most don't. Some states have something called a "use tax", which is the equivalent of the sales tax on something you buy over the internet and don't pay tax on it. You're supposed to include this when you file your state income tax (at least in New York that's how it works). Not sure how high the compliance is on that though!

Answer 4

if you're only promoting your previous stuff, for under you paid for it initially, you do not record it as earnings and do not pay tax on it. if you're attempting to make a earnings off of ebay by technique of shopping for issues for resale, any earnings is taxable earnings. that's earnings although, no longer sales - you would subtract any prices like fee to purchase the products, ebay prices, packing and delivery prices..