Is income from Ebay taxable..?

Question

Hi ...I am a small time trader on Ebay...
I sell mostly used stuff..and make some money out of it.

Is my income taxable..?

If yes..how can I reduce or save money off such taxes...

Answer 1

Yes, your profits are fully taxable.

You figure your profits on Schedule C or C-EZ. You can use any reasonable and necessary business expenses to reduce your taxable profit. You must also file Schedule SE to calculate the Self-Employment tax if your profits exceed $400 in any tax year.

Answer 2

If you are selling your own used stuff, and selling it for less than you paid for it, so it wouldn't be taxable.

If you are selling items for more than you paid for them, then yes, the profit is taxable. You can deduct what you paid for the items, and selling costs like ebay fees. You'll use a schedule C, and a schedule SE to figure your self-employment tax for social security and medicare, and a form 1040.

You probably also have a sales tax issue if you live in a state with a sales tax - if you don't have a sales tax number from your state, you need to get one, and charge sales tax to customers in your state, and remit it to your state on the schedule they give you.

Answer 3

1. Your income will be self-employment income. On your tax return it is to be reported on Schedule C of Form 1040 to figure out your net profit.

2. You must keep track of your gross sales and expenses to figure out net profit. This net profit is subject to Self Employment tax @15.3%. For this you will file schedule SE (Form 1040) with your Form 1040.

3. You must file tax return if your self employment income is $400 or more.

Answer 4

Yes, technically it is taxable.