Income Tax over Ebay incomes

Question

How do I pay the taxes over what I've earned on ebay?

will that be automatically reported like my usual income or do I have to get some papers and report it?

Answer 1

It also depends on why you are selling on eBay.  

If you are acting as a business, you report your earnings and related deductions on Schedule C.  

If you are just selling your stuff, any profits would be reported on Schedule D.  Anything sold at a loss would not be reportable.

Answer 2

It depends on what you are selling on e-bay.  If you are selling the prize junk from your garage it is likely that there would not be any income tax consequences.  If on the other hand you are buying widgets for $100 and selling them for $200 you have $100 gross profit for each sale.  Tha income is reportable.  In most cases you would be required to keep records regarding your purchases, sales and expenses.  At some point you would figure your net income using a Schedule C that would be attached to your normal 1040 tax return.

Answer 3

You need to keep your own records, and to report the receipts and expenses on schedule c of the federal income tax.  That is, for sole proprietorship if LLC.