How do you pay taxes on an eBay sale?

Discussion in 'General Discussion' started by VictoryLeo19, Feb 2, 2020.

  1. VictoryLeo19

    VictoryLeo19 Well-Known Member

    Joined:
    Mar 10, 2008
    Posts:
    5,217
    Trophy Points:
    287
    Likes:
    +875
    I know this might sound stupid, but what’s your process? Say I buy a transformer for $10 and sell it for $20. The shipping is $10. So I get paid $30. eBay and PayPal feed kick in and I probably end up with $15 bucks back to myself after I ship it.

    so am I being taxed on $15 or $30? Is this a case where the government doesn’t know about the eBay and PayPal fees and shipping costs?

    do you screenshot the purchase for evidence you paid $10 originally?
     
  2. Sunstorm9119

    Sunstorm9119 RC 1136

    Joined:
    Mar 16, 2005
    Posts:
    4,209
    News Credits:
    1
    Trophy Points:
    332
    Location:
    Williamsburg, Virginia
    Likes:
    +1,337
    Ebay:
    Facebook:
    Twitter:
    Google+:
    Instagram:
    YouTube:
    Seems like ebay charges the buyer the tax when they pay you, and then collects it automatically. . Screenshot_2020-02-02-08-03-21.png
     
  3. VictoryLeo19

    VictoryLeo19 Well-Known Member

    Joined:
    Mar 10, 2008
    Posts:
    5,217
    Trophy Points:
    287
    Likes:
    +875
    So there should be some kind of tax sheet eBay provides then that says how much sales income tax was deducted from the sale?
     
  4. Drangleic

    Drangleic A funerary dirge for humanity

    Joined:
    Feb 3, 2015
    Posts:
    8,207
    Trophy Points:
    242
    Location:
    Midgard
    Likes:
    +10,564
    Pretty sure they only collect the mandatory state tax for states that require it. Technically you would still need to declare it for federal and have it calculated in your earnings.

    Unless you're selling a lot though I think an audit risk over ebay sales is low, if you catch my drift.
     
  5. Sunstorm9119

    Sunstorm9119 RC 1136

    Joined:
    Mar 16, 2005
    Posts:
    4,209
    News Credits:
    1
    Trophy Points:
    332
    Location:
    Williamsburg, Virginia
    Likes:
    +1,337
    Ebay:
    Facebook:
    Twitter:
    Google+:
    Instagram:
    YouTube:
    I think I've misunderstood your question.... As far as income taxes go I've no idea.... I don't sell enough on eBay to have to worry about that.
     
  6. Laser_Optimus

    Laser_Optimus I can do this all day! TFW2005 Supporter

    Joined:
    Aug 27, 2004
    Posts:
    23,713
    News Credits:
    3
    Trophy Points:
    452
    Location:
    Brandon, Florida
    Likes:
    +17,613
    Ebay:
    Facebook:
    Google+:
    eBay collects the taxes for you in the state your selling in. As someone else mentioned they essentially handle it for you. They will send you a 1099 self-employment form (I think it's 1099 anyway) if you make over a certain amount in a year.

    eBay and Form 1099-K

    Here's a link to the relevant eBay page. If you don't fit the criteria there you don't have to worry about it I believe.
     
    • Like Like x 1