Can you get taxed for things you sell online?

Question

like eBay. Is it considered income?

Answer 1

Any money coming in is income and needs to be reported on your federal and state taxes. You only collect sales tax on sales made in your own state. Say you live in Texas, you sell online and send one item to Virginia, one to Wisconsin and one to Texas. The Texas one you should collect sales tax on. That will be reported as 'taxable' income on the tax forms. If you go out of state, say to Virginia, and do a sales show there, you collect sales tax on those items and pay the sales tax to Virginia when they do their paperwork (could be monthly, could be twice a year, could be once a year, your mobile sellers permit for that state will let you know).

With a business--either a full time one, part time one or hobby business, all income goes on the 'income' line on the tax forms and you'll need a Schedule C for adding to the Federal. It's a one page thingie. A copy of it goes on your state tax form as well. (It's not hard).

If you make less than $500 for the entire year, usually it's not reported (like rummage sales, birthday money, Christmas money from relatives, if it all adds up to less than $500, most people don't report it). But over $500, yes you should put it on the forms as income.

Answer 2

If you were just selling your old stuff, for less than you or your parents originally paid for it, no tax. But if you're buying for resale and make over $400 a year, yes tax is due, from YOU, not your parents although they're responsible for seeing that you file and pay, so you could all end up in trouble. YOU are the one who owes it, and when you get caught, you'll continue to owe it, plus interest and penalties, until you pay, even if it goes until you're an adult and the IRS just comes and takes money from your paycheck or bank account. And by that time you'd owe a lot more from the interest and penalties than if you had just paid it in the first place. If you make less than $400 a year, no tax is due to the feds. Depending on where you live, state or local tax might be due. Being 14 doesn't give you a free pass on tax.

Answer 3

I don't take it you are asking about sales tax, but rather income tax....
If you are selling some of your used things every once in a while then I wouldn't worry about it. If you have an online store or are regularly selling items, then you are probably in the range of it being considered income. I would check with a tax accountant if you are really concerned.

Answer 4

It would depend on your selling volume. The IRS isn't going to come after you unless they can gain a lot from what you would have earned in sales tax. And if you are going to sell a lot, you need a tax resale ID. You only have to charge for the state you're located in, though.