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How to file taxes for an ebay seller

Discussion in 'Business & Tax Advice' started by ryanster01, Jun 29, 2011.

  1. ryanster01

    ryanster01 Newbie

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    with the new 1099-K from paypal is going to send me.
    Im goiong to hit the 20000 gross and 200 payments
    I have never claimed anything before.
    do i have to get a business license now?
    so i just collect all my expensives and do a schedule C?

    Any Input would help im in a this and dont know anything about taxes
     
  2. jonnyquest

    jonnyquest Regular Member

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    Yea just do a Schedule C .... one thing you need to remember is the IRS wants their money on a regular basis as in Quarterly Tax Payments ... you will pay a penalty (small amount based on your 20K - less legit expenses) ... in addition you will need to pay to the IRS your self employment tax which is sole and separate issue.

    I am not an accountant nor a lawyer so check with the IRS

    JQ
     
  3. wowhaxor

    wowhaxor Executive VIP Premium Member

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    He is correct in saying you should pay quarterly, technically you're supposed to do so. Although if you pay the correct sum yearly they do not enforce the penalties but they COULD.

    Plus paying quarterly makes it easier than having one huge payment at the end of the year. Also consider dropping $100 (or whatever your state charges) on a LLC and getting an EIN tied to that just to limit your personal finances from that of your business.
     
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