Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Do I have to collect taxes on eBay?

I have been doing ebay for about 6 months now and have about $2,700,00 in sales so far

also i have had 170 selling transactions since then.

Do I have to pay any sort of taxes.

I plan on becoming an ebay top rated seller very soon.

4 Answers

Relevance
  • Anonymous
    10 years ago
    Favorite Answer

    You better have good records because eBay will report the gross sales (new requirement this year) to the IRS and they'll expect you to file a schedule c and se on the earnings. Goggle 1099-K.

    You home state will get that info and demand income taxes and probably ask about sales taxes too.

  • 10 years ago

    Probably.

    1) If you sell to anyone in your own state, then you must collect sales tax. If you sell only to users in other states, then this is not necessary.

    2) If you make a profit by selling things for more than they cost you, then you must pay income tax. If you are only selling your old junk for less than it cost you, then this is not necessary.

    3) If the profit (sales minus what it cost you to get the stuff that you sold) is $400 or more in any one year, then you must pay self-employment tax. If it is less than $400 in each year, then this is not necessary.

  • Judy
    Lv 7
    10 years ago

    If you're doing that much business, sounds like you're not just selling some of your own stuff. If you live in a state with a sales tax, you need to get a sales tax license, and collect sales tax from buyers in your own state and remit it to the state.

    And you need to file and pay income tax on your earnings.

  • Ed Fox
    Lv 7
    10 years ago

    You cannot specifically charge tax as you are not a bona fide retailer

Still have questions? Get your answers by asking now.