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Paying taxes on ebay (or not?)

by apocalypsejay
2 replies
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Okay, I know I should pay my taxes. Fact is, I am a little guy and the government will probably just waste what I give them and give it away to some entitled person.

Anyways, Should I sign up to pay taxes on ebay? I am just starting to catch fire with my sellers account, got many sales and 100% feedback and I am selling almost every day now. My product is sourced from places where sometimes it is free. I prep the item and sell it.

I recently lost my real job and have just started selling on ebay seriously. I also do the pallet thing. Why pay taxes, espescially when the IRS has made it so complicated that I am sure to get audited?

If I read my state's requirements correct, after getting a tax id number, I must collect sales tax quarterly. If sales tax is under 22 dollars, I must pay 22 dollars (which I do not have obviously if sales are that low). Then, on top of that, I send in a quarterly "estimated" tax to fed government on schedule C. I cannot afford an accountant.

What should I do?
#ebay #paying #taxes
  • Profile picture of the author DSGDSG
    Originally Posted by apocalypsejay View Post

    Okay, I know I should pay my taxes. Fact is, I am a little guy and the government will probably just waste what I give them and give it away to some entitled person.

    Anyways, Should I sign up to pay taxes on ebay? I am just starting to catch fire with my sellers account, got many sales and 100% feedback and I am selling almost every day now. My product is sourced from places where sometimes it is free. I prep the item and sell it.

    I recently lost my real job and have just started selling on ebay seriously. I also do the pallet thing. Why pay taxes, espescially when the IRS has made it so complicated that I am sure to get audited?

    If I read my state's requirements correct, after getting a tax id number, I must collect sales tax quarterly. If sales tax is under 22 dollars, I must pay 22 dollars (which I do not have obviously if sales are that low). Then, on top of that, I send in a quarterly "estimated" tax to fed government on schedule C. I cannot afford an accountant.

    What should I do?
    In my state you have to file quarterly taxes even if none are owed or there were no sales. You only owe sales and use tax on items sold(shipped) within your state (as of right now) and for items you purchase and use yourself for business and whatnot that you don't pay tax on when you first buy. For federal my accountant just files my taxes on a c once at the end of the year and my bill is $350 including the electronic filing. Yeah you're a little guy, but the penalties and fees they add on for not filing amount to enough to go after you for. Your vote is the tool you need to use to determine how your government spends the money it collects from you, not arbitrarily deciding since you don't like what they do with it you just won't pay it. You will not win.

    I'm not an accountant. I'm just using my own experiences.
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  • Profile picture of the author Auctiondebteliminator
    Originally Posted by apocalypsejay View Post

    Okay, I know I should pay my taxes. Fact is, I am a little guy and the government will probably just waste what I give them and give it away to some entitled person.

    Anyways, Should I sign up to pay taxes on ebay? I am just starting to catch fire with my sellers account, got many sales and 100% feedback and I am selling almost every day now. My product is sourced from places where sometimes it is free. I prep the item and sell it.

    I recently lost my real job and have just started selling on ebay seriously. I also do the pallet thing. Why pay taxes, espescially when the IRS has made it so complicated that I am sure to get audited?

    If I read my state's requirements correct, after getting a tax id number, I must collect sales tax quarterly. If sales tax is under 22 dollars, I must pay 22 dollars (which I do not have obviously if sales are that low). Then, on top of that, I send in a quarterly "estimated" tax to fed government on schedule C. I cannot afford an accountant.

    What should I do?
    Yes, taxes suck.

    Should you pay them? Yes.

    The success you have now is way better than getting your business shut down and going to jail.

    However, you don't have to collect sales tax, you just have to remit it. And that is generally for people who only buy within your state.

    You need to FILE quarterly, and it doesn't need to be an estimate - it can be exact. Just get Quickbooks - it's a pretty easy program to use.

    Then get an accountant to file your ANNUAL return.


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