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Ebay taxes?

Discussion in 'Ebay' started by jihalliday, Apr 24, 2017.

  1. jihalliday

    jihalliday Registered Member

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    Hey. So I'm selling individual cards on Ebay, personal collection. Only selling a couple a week but for $10ish, so an OK profit for literally no work.

    I heard eBay sends a 1099-K if you make over 20k or 200 sales. If I make below that, can I get away with not reporting the income? Paypal+Ebay fees are already annoying me, taking way a couple bucks a sale, but having to pay taxes on that income would be a LOT of my profit.
     
  2. Old Dog

    Old Dog Newbie

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    It is actually paypal that will send the 1099 for sales of $20,000 or more and 200 sales. I made over 200 sales last year but did not hit the $20,000 mark and I did not get the 1099. Apparently you have to achieve both in order to get the 1099.
    This year I am on track to hit both so I will likely get the form next tax season.
     
  3. toml3030

    toml3030 Elite Member

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    Realistically you will get away with it, but it's not zero chance that IRS will flag you if the funds ever hit your bank account. If they don't give you a 1099, the IRS will not learn from paypal that you have income, but they may question you if the money has been deposited into a bank account or you spend more than your income via checks and cards. If you report $50K a year income and you deposit or spend $70K, IRS is more likely to audit you.