I sold 10K worth of items last year through both ebay and Amazon (9k on Ebay and 1k on Amazon). After expenses my earned income is around 5K. Do I have to report this income to the IRS?
10K sales, required to report to the IRS?
Matthew Jackson
Dylan Sanchez
What happens if you don't
Daniel Moore
when you do a tax return, yes.
James Harris
>10k
Did you take all payments through paypal? If so then its likely they've already reported your income to the IRS and you should receive some paperwork from paypal soon. Paypal reports income at $10k and up. However it's possible that you are under the reporting limit if you were rounding up the sales to $10k.
Levi Phillips
So lets say if I don't get any paperwork from Paypal. Should I still report it?
Noah Harris
You only have to report income if you were running your enterprise as a business, not a hobby.
the main things to know are-
did you purchase inventory for resale (biz) or did you get it out of your garage (hobby)?
do you expect to declare a loss during 2 or more of the next several years (hobby)?
if you bought inventory to sell AND don't anticipate regular future losses AND NETTED more than $10,300 FROM ALL SOURCES then you need to report it. If any of those things aren't true then you don't.
Christian Smith
One doesn't make money off their "hobbies"
Oliver Young
Depends on your deductions I think.
If your deductions would have taken more than 5k of your taxable income (I'm almost certain it would have), then there is no need to file an income tax return.
Normal individual poor man deductions are like 9k, so you only have to pay income taxes if you make more than that, unless you have the misfortune of having dependents.
Then it's different.
Daniel Gonzalez
>did you purchase inventory for resale (biz) or did you get it out of your garage (hobby)?
I got it out of my garage after purchasing it
>do you expect to declare a loss during 2 or more of the next several years (hobby)?
I donated anything that I didn't want
James Martin
educate yourself.
irs.gov
Anthony Rogers
I literally just typed this in to google and got the answer.
google.com
>Generally, if your total income for the year doesn't exceed the standard deduction plus one exemption and you aren't a dependent to another taxpayer, then you don't need to file a federal tax return.
The standard deduction is like 9k for an individual.
Bentley Nelson
>I got it out of my garage after purchasing it
that argument is no good.
your donations might reduce your income.
so you were operating a business,
the only real question now is did you NET more than $10,300 from all sources last year?
If yes you need to claim it. If no, no.
Carson Walker
>that argument is no good.
Well how did you expect it to get INTO my garage in the first place?
Do you even have proof that I bought this stuff? I could just have a very large garage.
Gabriel Davis
With eBay and Amazon, they take the fees out before they pay you your cut, so if what he's saying is correct, he NETTED 5K, and his standard personal deduction was well above that, making an income tax return unnecessary.
Colton Mitchell
It'll depend on what you sold.
if you sold 200 of the same thing brand new in the box the IRS will probably see that as business inventory.
If everything you sold is used and you only have one of it, you're probably in hobby territory.
Luis Campbell
>making an income tax return unnecessary.
unless he had income from other sources.
which he hasn't answered.
Zachary Clark
Make sure you find out if you can count eBay and Amazon fees as business expenses, those may make your deductions even higher and make your 5k income even more unworthy of an income tax declaration
Jason Walker
Good point. Doesn't sound like it though.
Justin Johnson
I technically have a W2 from a job
Its 200 of income
Zachary White
>if you can
it has to count, shits at least a good 12% of my sold income
Charles Ross
if that's all you had you don't need to even file a return.
Ryan Miller
Frankly my advice is: I wouldn't bother filing an income tax return if I were you. You wouldn't have to pay any taxes anyway because of the personal deduction
Chase Price
>it has to count
yeah, it does.
Easton Smith
This is far from Wesley Snipes territory. Worst they can do to you if they audit you is make you pay back taxes, which, at your income level, would come out to a few thousand dollars a year. I'm pretty sure the IRS has payment plans for stuff like that.
As long as your negligence isn't criminal you should be ok. Just plead stupidity. And like I said you're probably right to not even file an income tax return since you would never have to pay taxes on such little income, even as a single man with no wife or children.
You're fiine.
Jack Sanchez
Oh yeah I forgot to ask if you live in a state with income tax.
Never do that. Big mistake. Unless you're a liberal scumbag or hipster fag move to a state with no income tax like Nevada, Texas, or Florida.
Xavier James
I live in New York, kinda hard to move anywhere with no money
Owen Bennett
It is threads like this that make me realize /biz is a bunch of teens and unemployed adults pretending to have knowledge about investing/business.
Here is your answer.
Do you need to file a tax return?
You are not required to file a tax return for 2016
You are not required to file a tax return because your income does not equal or exceed $10,350, nor do you owe any special taxes or have any special situations that require you to file.
irs.gov
Robert Bennett
>Don't listen to the majority of other people on this thread they don't have a clue what they are talking about.
>repeats what everyone else said
>tells op not to listen to everyone else
Luke Cox
State income tax isn't a big deal because they're generally small and I don't mind paying taxes at the state level.
It's federal taxes and FICO that fuck everyone over.
Ryan Long
You are an immature child.
Dominic Reed
save yourself some embarrassment in future and actually read the comments you're trying to criticize, kiddo.
Anthony Stewart
PayPal doesn't report until you hit $20,000.