Does Ebay collect and report sales tax or is that the seller's responsibility?
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I talked to a couple folks who sell lots on Ebay. Much more than any ordinary mortal. Apparently if you sell more than $20k a year, gross, they will send you a 1099.
One other thing to note is that they are now charging tax on Shipping Costs.
-DH-
I talked to a couple folks who sell lots on Ebay. Much more than any ordinary mortal. Apparently if you sell more than $20k a year, gross, they will send you a 1099.
Sell more than $20K and 200 transactions will get you the 1099 and the IRS notified of your “business” income. EBay is required by law at that point. And so are you of course.
Under IRS guidelines you are required by law to file taxes once you hit the $600 mark.....
My understanding is that the $600 threshold has nothing to do with what becomes taxable income or not. It has to do with reporting requirements of someone else. So once PayPal, ebay, someone who pays you, etc. starts reporting something to the IRS (which is often required once you hit the $600 threshold), then the IRS learns of income they wouldn't otherwise know about. That's why you you "need" to start filing/paying taxes at the $600 mark.