How to report tax on ebay selling income?

Question

I am starting to sell on ebay this year, I earn about 2000 per month. when the tax year come, how should i report my tax? if in the future, each month i can earn is about 4000-6000 per month, is it better if i register for a business license?

Thanks

Thanks

Answer 1

this may not be a direct answer to your question but ebay.com does have the resources and answers to your questions. Especially if you join the blogs area. they are very eager to answer your questions pertaining to your tax in doing business with ebay.  Good luck if your ebay business

Answer 2

Read about self employed tax filing and payment of estimated taxes: http://taxipay.blogspot.com/2008/04/tax-...

Answer 3

Report the income Schedule SE and on either Schedule C or Schedule C-EZ (C-EZ is simpler, but C also more deductions).

Answer 4

You will need to file a Schedule C with your federal and state returns. This forms lists all your income and expense. If you make enough, you will also have to start sending in estimated taxes with form 1040-ES and your state's estimated form as well. Figure about 30% of your net income to go toward taxes, 15.3% for self-employment tax and another 15% or so for state & federal income taxes.

Make sure to keep detailed records of all your income and expenses. You will need documentation in the event of an audit.