Question

Ebay Reseller

Forum|Forum|3 years ago
August 31, 2022
1 reply
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I sell collectibles on Ebay in my free time as well as on Mercari. How would I file this on my next year's taxes and how can this affect them? Would this affect any financial aid I receive as I am a full-time college student as well.

T

Taxand theCurious

If you sell and buy articles on eBay in order to earn money, the IRS will likely classify your sales activities as a business. This means you will have to report net income from eBay sales. Report your total gross income on Schedule C, then reduce it to net income by subtracting the amounts you spent for allowable business-related expenses. This link should be helpful for you: https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-tax-filing-factsheet-for-ebay-sellers/L7h6uJr0i

In terms of how your business profit will affect financial eligibility, I would suggest you check with your educational institution or FAFSA, as there are numerous factors and various types or aid available.