PayPal and taxes
03-17-2011, 07:13 PM
#34
Power Poster
Join Date: Dec 2008
Location: Western Wisconsin
Posts: 12,930
Originally Posted by Rose Ann
Mother always said there was never a dumb question - but, this may be one. I'm thinking of selling on e-bay and/or etsy. Do you need a tax ID to do this?
If you exceed the amounts stated earlier in the thread ($20,000 and more than 200 payments), then you will probably be required to furnish your social security number and or EIN (tax ID for a business) for income tax purposes (in this case, eBay/etsy will report to the IRS how much you sold).
You need a tax ID when you are selling items that must be taxed where you live. You also need a tax ID if you want to buy supplies untaxed from wholesalers.
This article explains it better:
http://reviews.ebay.com/What-About-T...00000000854743
03-17-2011, 07:31 PM
#35
Banned
Join Date: Dec 2009
Location: Enid, OK
Posts: 8,273
If you represent yourself as a business, IS: business cards, bank accounts, etc, then you will need a tax ID and will have to file taxes as biz!
If you make more than $600 a year selling items, be they yard sale, online, craft shows etc, you are to claim it as income!
Under the NEW tax laws small/home based businesses are no longer allowed to claim utilities, mortgages/rent, phone, insurances, etc, etc....there are NO deductions for small home bases businesses any more!
Hence the reason I am closing my ebay store after 9 years!
If you make more than $600 a year selling items, be they yard sale, online, craft shows etc, you are to claim it as income!
Under the NEW tax laws small/home based businesses are no longer allowed to claim utilities, mortgages/rent, phone, insurances, etc, etc....there are NO deductions for small home bases businesses any more!
Hence the reason I am closing my ebay store after 9 years!
03-17-2011, 07:38 PM
#36
Banned
Join Date: Dec 2009
Location: Enid, OK
Posts: 8,273
One must remember that this world of ours includes many that are NOT as legit as we might be! The online banking and electronic payments centers are HUGE in the money laundering business now...
and do you know how many people are selling on Ebay, Etsy and millions of other websites and NOT paying taxes or declaring that income? LOTS of people who claim disablity/ SSI, etc are making more money online that you and I are working the M-F 40hr work week, and WE pay taxes on our income! So it only makes sense that sooner or later the bad guys are going to make it harder on all of us! Think TSA...seriously...when was the last time a guy with NO legs tried to blow up a plane..or a woman with breast implants..yet we ALL have to suffer the injustices at the airport....
Just like avoiding the airports, if you do not want uncle sugar to know what/where/why you get your money, then just do NOT sell online..
and do you know how many people are selling on Ebay, Etsy and millions of other websites and NOT paying taxes or declaring that income? LOTS of people who claim disablity/ SSI, etc are making more money online that you and I are working the M-F 40hr work week, and WE pay taxes on our income! So it only makes sense that sooner or later the bad guys are going to make it harder on all of us! Think TSA...seriously...when was the last time a guy with NO legs tried to blow up a plane..or a woman with breast implants..yet we ALL have to suffer the injustices at the airport....
Just like avoiding the airports, if you do not want uncle sugar to know what/where/why you get your money, then just do NOT sell online..
03-17-2011, 08:36 PM
#37
Senior Member
Join Date: Nov 2010
Location: Merritt Island, FL
Posts: 672
Originally Posted by quilting cat
I prefer not to sell for paypal because I don't know how to get the money out other than to spend it through pp!
Small transactions like many of ours shouldn't be taxable. We're not making any profit selling property for 60% retail!
Do they want to tax what we "earn" having a yard sale?
Small transactions like many of ours shouldn't be taxable. We're not making any profit selling property for 60% retail!
Do they want to tax what we "earn" having a yard sale?
03-17-2011, 09:40 PM
#38
Super Member
Join Date: Mar 2008
Location: AZ and CT
Posts: 4,898
Originally Posted by quilting cat
I prefer not to sell for paypal because I don't know how to get the money out other than to spend it through pp!
Small transactions like many of ours shouldn't be taxable. We're not making any profit selling property for 60% retail!
Do they want to tax what we "earn" having a yard sale?
Small transactions like many of ours shouldn't be taxable. We're not making any profit selling property for 60% retail!
Do they want to tax what we "earn" having a yard sale?
03-17-2011, 10:07 PM
#39
Super Member
Join Date: May 2009
Location: Orchard Park, NY (near Buffalo, which is near Niagara Falls)
Posts: 3,884
I have long thought that it was only a matter of time before the IRS decided to tap into what is surely a big business, overall: eBay and PayPal.
You can run but you cannot hide. Not anymore.
You can run but you cannot hide. Not anymore.
Thread
Thread Starter
Forum
Replies
Last Post
dreamer2009
General Chit-Chat (non-quilting talk)
20
11-20-2010 08:58 AM
Rebecca VLQ
General Chit-Chat (non-quilting talk)
23
03-30-2010 07:08 PM
