Ebay and taxes

[treason]

If i receive money from my paypal account but never withdraw it through my bank acc, will i still need to file my taxes?

what i'll do with the money in my account is spend it on virtual goods or what not.

any help would be appreciated, thanks.

 

[zigzag911]

I have never filed any pp for taxes , try and get most of your money "donated" to your or payment for a product i belive you are only to pay taxes on the income that you made through selling services I belive but i could be on crack and completly wrong

 

[treason]

well if i receive money from ebay, am i obligated to file my taxes even though i won't be transferring the money to my bank account?

 

[zigzag911]

just who cares spend it , i really doubt if it never hits your account buy a tv or something

 

[doombot1]

well if i receive money from ebay, am i obligated to file my taxes even though i won't be transferring the money to my bank account?

yes. you are obligated to pay taxes on it. keeping money n paypal account is not a factor. but most people do not even calculate ebay income in their taxable income - unless their making a real business out of it. If you didnt make a lot of money, dont worry about it.

 

[treason]

just who cares spend it , i really doubt if it never hits your account buy a tv or something

are you on the same boat as me? are you on the ebay network as well?

yes. you are obligated to pay taxes on it. keeping money n paypal account is not a factor. but most people do not even calculate ebay income in their taxable income - unless their making a real business out of it. If you didnt make a lot of money, dont worry about it.

so how much money is safe to have without getting in trouble with the irs?

 

[mrgoodbytes]

are you on the same boat as me? are you on the ebay network as well?



so how much money is safe to have without getting in trouble with the irs?

Legally, you're supposed to report ALL income...even as small as $1. But of course, that's not enforced. As a practical point, most places will file a 1099 if you make over $600...meaning that, if you make that much, the IRS will know about it. And if you don't report, you'll be in trouble.

 

[RichUser]

I know an accounting friend, and lately, every week he has had a client come in saying that IRS caught him for not filing money on his paypal earnings. So yea, I would def report it.

 

[innocent]

If I could somehow monetize how many times this question has been asked...well, I'd be frickin rich...

Yes, if you earn a dollar, you are required to pay taxes on it whether you get it via Paypal, cash, whatever.

Whether you report the income and pay your tax that's your business but the answer is that YES YOU OWE TAX ON THAT MONEY.

I shit you not...just watch...someone else will ask this same question within the next 7 days.

 

[sandycat]

EPN definitely files your income to the IRS after $600.