Do i need to file taxes?
I was working at a job until the end of February. I made about $2000 for the year from that job. I started to buy things from thrift stores, yard sales, etc. and resell on eBay. I havent really made much of a profit (although I am working at making it more profitable) after you factor in the cost of the shipping the item, eBay and Paypal fees, the original cost of the item, etc. It varies every month the amount of money I make. I have kept almost all of my receipts for all of my expenses. For the most part my fiancee has been supporting my daughter and me. I want to be able to claim the earned income credit but I dont really know if I can. Could I use my eBay store as a source of income? How would I go about doing this?
I should clarify that the $2000 I made was at a different job. Not the eBay business. I have probably averaged about $500/month income since February.
- StephenWeinsteinLv 77 years agoFavorite Answer
If you made $400 or more in the eBay business, then you must file.
If you file, then you must use both the eBay business and the other job as sources of income. You are not allowed to use only one or the other.
The eBay stuff goes on Schedule C or Schedule C-EZ, and on Schedule SE, and on the business income line of Form 1040.
The other job goes on the salaries, wages, and tips line of Form 1040.
- NALv 77 years ago
Be prepared to prove the income and expenses. The IRS can easily come back and say that your eBay activies are a hobby and not income for EIC purposes.
- BobbieLv 77 years ago
Required by the local taxing authority in your local area for you to contact your local taxing authority and let them register you for this purpose and get copy of that form so that you can make copies when you are going to buy items to for you to resell out to the public and show you how to and explain to you that you do have to be a registered sales and use tax collector for them and what forms and schedule that you will have to use to correctly send to them the amount of sales and use taxes that you did collect for them during each period of time as you are required to do OK.
Federal taxes social security, medicare taxes plus your federal income tax amount that you will owe and need to make the quarterly estimated taxes during each tax year for this purpose and time in your life.
Self employed independent contractor sole proprietor using your name and your SSN as your TIN number for this purpose of your own business operation at his time.
Self employed independent contractor using your daily written receipt book records to report your gross income or loss on the schedule C or CEZ along with the SE to determine your NET PROFIT or LOSS from your business income during the tax year for this purpose.
SE your social security medicare tax amounts that you would OWE on your NET profit amount that would end up the page 1 line 12 from the schedule C and any SE tax owed page 2 line 56 and page 1 line 27 Deductible part of self employment tax attach schedule SE line 27 $$$ amount.
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- SlickterpLv 77 years ago
Yes, you must file. Hope you kept records. EIC with self employment income is an audit waiting to happen, make sure you are 100% accurate.
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- troLv 77 years ago
your $2000 is earned income as well as your self employment business of selling on ebay which you report on Sch C and possibly Sch SE, included in your 1040
if the b/f is not the father of your child he is not able to claim her, she is your dependent and you are the one to claim her
- JudyLv 77 years ago
Yes you need to file. You need to show the amount of money you took in, and also what your expenses were. To collect EIC, you'll have to prove the income to the IRS and that you claimed all of your expenses