Is selling stuff on ebay taxable or considered 'earned income'?

Question

I just recently started selling stuff of mine on ebay and I was wondering if it was considered an 'earned income' or do I have to pay taxes on it and report it? One person told me no.. its your personal stuff no one can tell you what you can and cannot sell. As the other one told me that if you sell something thru a paypal account its considered an earned income that should be taxed. I'm confused and getting nervous. Any help?

Answer 1

its not taxable... it's more like a hobby

Answer 2

IF YOU MAKE  $12,000 OR HIGHER U MUST PAY INCOME TAX.  

Answer 3

If you are selling your personal stuff for less than you paid for it originally, you don't have a profit so don't have any taxable income, so don't have to report the sales or pay tax on them.

But if you are selling on ebay and making a profit, it IS taxable income and you are legally required to report it.

Answer 4

yes its taxable... let me get those receipts for you... oh wait I don't know where they are... sorry.

Answer 5

Add up what you've made selling on ebay.  Now add up the expense of it including the cost of the items themselves, the listing fees, transaction fees, the packaging, postage, insurance, etc.  Now subtract the two.  If you've made a profit, then it is taxable.

Answer 6

Any income derived from such sales is subject to income tax. Your "income" would be the difference between what you paid for the item and the price you sold it for. You will, however, be able to deduct actual expenses if you file a Schedule C with your return.

Regarding paypal, the IRS is now requiring paypal to send out 1099s for accounts that receive income over $600 in a year, so if you have sales through paypal that exceed that amount, it will be reported to the IRS, so your tax returns need to include that income.

Answer 7

i dont believe that it is taxable

Answer 8

Any time you sell something or even have someone give you money as a gift it is considered taxable. All states are greedy & want to tax you off every dime you get.  

Answer 9

don't need to pay any tax cause they use it all over the world ebay nor paypal USgoverment dont own them

Answer 10

I think it is taxable

Answer 11

There are an astounding number of wrong answers here! So far I think Judy is the only one who's got it right.

If you are selling your own personal property that you've already bought and paid for and used, you do NOT need to pay taxes on what you sell it for, unless you sell it at a profit (for example, if you're selling something that's highly collectible).

If you're buying items specifically for resale at a profit on eBay, then you need to pay tax on the PROFIT that you make (the price you sell it for, less the price that you pay for the item).

Whether the money comes to you via Paypal or any other method has nothing to do with whether you have to pay taxes or not.