I sold used personal items (clothing, toys, DVDs) on eBay and was paid through PayPal. I just got a 1099-K for the money I took out of my PayPal account. Does this mean I'm self-employed and need to upgrade? I didn't make much money
Form 1099-K reports payments from PayPal and similar Third Party networks. As you have described the transaction, your 1099-K reports the money you withdrew from your PayPal account. It's possible that more income was deposited to your PayPal account, but you withdrew less than you were paid.
The most important information would be the total proceeds you received from the sale of your personal items. The second question would be why you sold the items on eBay.
If selling these items is a business with the intent to earn a profit, then you would report the actual sale proceeds as self-employment income on Schedule C (subject to self-employment income tax).
However, if this is a hobby or occasional income with no profit motive, you may report this as "Hobby/Other Income" on your personal tax return.
This post may help you decide which is most appropriate: What's the difference between self-employment income and other income?
Also note that if this was a one-time sale of used personal items, and you sold the items for less than you paid for them, this would be considered "yard sale" income. If this is the case, you would not be required to report the income at all.
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