illinois taxes with ebay selling and buying?

Question

I just got a audit letter from Illinois department of revenue saying I owe taxes for selling and buying from eBay. Does anybody know anything about this, I'm back on taxes from 2012 to 2013, I never ever did nothing since I get ssi and never filed taxes all this is new to me, have anybody ever had a problem like this or what's the easiest way to go about this? Also why do I have to pay for buying I thought the seller is responsible for this. Let me know thanks

Answer 1

Favorite Answer

I'm sorry you were NOT aware of the law. It's the law in most states. You pay 'use' tax when you make a purchase online when you are NOT charged IL state sales tax or from out of state when you don't pay sales tax or the sales tax you paid was lower. The seller is NOT required to charge sales tax and local option tax if they do NOT have a nexus in your state.

If you don't sell on Ebay - you are being assessed use tax for purchases made online. It could be worse - you could pay both use tax which is the state sales tax 6.25% plus local sales tax. It could be as high as 9.75% depending on where you reside.

See these links

http://tax.illinois.gov/individuals/illinois-use-t...

http://tax.illinois.gov/Publications/PIOs/PIO-36.p...

Since you don't file a tax return - you will have to use this form if you make other taxable purchases

http://www.revenue.state.il.us/taxforms/Sales/ST-4...

http://tax.illinois.gov/taxforms/Sales/ST-44-Instr...

If you bought cigarettes - the tax is even higher

http://tax.illinois.gov/taxforms/Misc/CIG/RC-44.pd...

Good Luck & sorry you had to find out the hard way..

Answer 2

this is self employment income and needs to be reported on Sch C and SE with your 1040, the state usually forwards the 1040 AGI to the state form and you are taxed on the amount you claim on Sch C

for the federal you also owe self employment tax and if you haven't already heard from IRS you will be on this unpaid tax

Answer 3

Did you sell on Ebay? If so, if you had over $400 in sales you had to file a return.

Answer 4

That's an good question, looking forward to reading the responses