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K
Katekhet
August 31, 2022
Question

Selling on Mercari

  • August 31, 2022
  • 1 reply
  • 0 views

Hi!  I made more than $600 by selling things from around my house.  How does this impact my taxes?  

      1 reply

      John-H2021
      John-H2021
      August 31, 2022

      You would need to report the income on your tax return and pay the tax on it.

      There are 2 ways to report the income.

      1. If it is a hobby then the income is reported on schedule 1 for the full amount of the 1099 no expenses allowed to be taken

      2. If it is a business then it would be reported on a schedule C (self-employed income). Yu would report the 1099 as income and then deduct the expenses you have against making that income.

       

      Here are a few helpful links

      https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...

      https://turbotax.intuit.com/tax-tips/self-employment-taxes/4-tax-tips-for-money-making-hobbies/L89qz...

      https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

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