I KNOW ALMOST NOTHING ABOUT TAXES, and just do the basics every year and get it over with.
My question is what’s gonna be the damage when I report the income from my sales? How much will I have to pay if say I did $5k or $10k in sales. Is that a thing? I think Rudy was saying something about this in a video awhile back.
Most my sales are on EBay but some go through PayPal.
Contact a CPA/Tax person.
I’m not a CPA.
Sales - COGS/Expenses = Taxable income.
Check income bracket.
Taxable income * Income tax bracket % = potential owed taxes.
Once again, I’m not a tax preparer or a cpa. Ask your person.
Edit: Please also refer to Tax evasion megathread.
It’s my understanding that this is actually going to apply starting 2022. Ebay’s website and rules currently still reflect the current 20k threshold. I could be wrong.
Ebay won’t automatically provide the form until you hit that threshold, you’re still legally obligated to report any income you’ve earned.
I know but no one doing under 20k is really gonna do it until they get slapped with a 1099, knowing the IRS has it as well. I assume this is why OP is asking.
edit: the rudy video is about hitting people with the $600 and up and it freaked everyone out.