How to calculate taxes on ebay sales?
Tags: Ebay, eBay Sales, Employment Taxes, Estimate Taxes, Pay Taxes, Self Employment, Taxes Sales
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on Friday, February 6th, 2009 at 10:17 am and is filed under eBay Sales.
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February 9th, 2009 at 10:02 am
I understood that ebay was still under the “Garage sale” laws unless you set up and “Ebay Store.”
Perhaps I need to find out more details as well.
February 10th, 2009 at 10:33 pm
If you had a profit of $800 last year, you need to file, and will be responsible for self-employment tax.
If you don’t want to file every quarter, you can pay the whole year’s worth of estimated taxes in the first quarter. Otherwise, you’re subject to penalties.
When someone just sells their own stuff on ebay that they don’t want any more, they usually end up selling for less than the purchase price (same as garage sales) so don’t normally have a profit so there’s nothing to be taxed. People who sell on ebay as a business, making a profit, are subject to tax. If someone sells somethine of their own but makes a big profit on it, maybe an antique or collectible, then that’s taxable.