I'm selling on eBay just as a habbit. However, I earned more than $1500 a year. Do I need to put it in my tax?

Question

Also, how can I pay sales tax if I sell on eBay

Answer 1

If selling on eBay is a business activity, then you have to report income and expenses on Schedule C. Business activity is that you are buying items at cheaper prices and selling at a profit.

If you are selling your personal goods on eBay, then you don't need to report this.

In order to collect Sales Tax you need to first register with the Sales Tax office and get a Sales Tax registration number. Without this if you are collecting sales tax, then it is not legal.
If you don't have sales tax number, you can still sell but without adding sales tax.
(What I said about the sales tax, I am not 100% sure, so check from other sources).

Answer 2

That depends. If you are selling stuff from around the house, and paid more for the items you sold than you sold them for, then no, you don't owe any income tax. But if you are buying items for resale and are making a profit on them, then it's a business and you do owe taxes.

As to sales tax, if you are selling on ebay as a business and are selling to anyone in your state, then you need to contact the proper department in your state to get a license to collect the tax - you can find the info on your state's website. You would not collect sales tax on items that you sell out of state.

Answer 3

Whether you have to pay income tax or not depends on what you sell on eBay.

If you are only selling your personal items, then you may need to pay tax if there is a gain on the sale compared to the original purchase price. These would be capital gains reported on Schedule D.

If you are actually running a business, then you would have to report all sales and related expenses on Schedule C.

You would be subject to collecting sales tax in the states that you physically conduct business. For example, if you live (and likely run your business) in CA, then you would be required to collect CA sales tax. If you personally make deliveries in NV, then you would also be required to collect NV sales tax. However, if have the USPS, UPS, FedEx, or DHL make all of your deliveries to NV, then you don't need to collect NV sales tax.

Answer 4

Yes you do have to pay taxes on money earned through eBay. It would behoove you to keep a record of your postage costs, office supplies needed, supplies like packaging, products you bought specifically to sell so that you can deduct these against income earned.

Answer 5

Since you made a profit, you should file a federal tax form Schedule C in addition to your 1040. You may be required to file the "long form" because of the Schedule C.

Sales tax is another issue. I know it comes before Congress every so often, I am not current on the issue. There was an exemption period.

Answer 6

calculate the net profit and during tax time let your tax person know what about this...