If your business is a hobby, the IRS won't allow you to deduct any expenses or take any loss for it on your tax return. So, before you say it's a hobby, be sure it is.
This article gives a lot of clarity to the business vs. hobby issue. Tax Tips for Money-Making Hobbies
If you made a profit on your Ebay sales, I recommend that you file as self-employed on a Schedule C.
Be aware that your business income will be subject to income tax and also self-employment tax.
The self-employment tax rate is 15.3%. That rate is the sum of 12.4% for Social Security and 2.9% for Medicare.
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