Do u have to pay taxes on stuff u sell on ebay?

Question

Ive been getting items from a wholesaler and selling them for a small profit on ebay and was wondering if and how i have to report that when i do my taxes...oh and i dont have a business or any licenses ..i have a full time job and am just doing this on the side ...and i live in cali if that makes any difference..thanks

Answer 1

Yes you do.  That profit is considered income.  Also you need to be collecting sales tax when appropriate.

Answer 2

The answer hasn't changed since you asked this earlier today. Doing it as a part time job along with a full time job, and living in CA, and not having a business license doesn't change anything.

Yes, since you are buying items for resale, so you are presumably selling them for more than you paid for them, you should be showing those amounts on your income tax return. . You'll file a schedule C showing your income and any associated allowable expenses, and a schedule SE to calculate your self-employment tax, and a form 1040.

If your state has a state income tax, you'll owe that also.

You also need to get a state tax id if your state has a sales tax, and charge sales tax to any buyers in your state and remit the amount to your state.