Yes, you would report your income from selling on Ebay and Amazon.
The IRS rules are clear: you must pay taxes on
all personal and business income and that includes money you make
selling on Ebay and Amazon.
On the
bright side, if you do sell on eBay as a business you can deduct a
number of business expenses, including the cost of inventory, listing
fees, shipping, envelopes, packing materials, etc.
You might also be
able to deduct things like the purchase of a computer for business use,
office space (even if it's a home office), office supplies, and more.
The best TurboTax product for this would be Turbo Tax Self-Employed (Online) or TurboTax Home & Business
(desktop) because these two versions handle the unique situations of independent contractors, freelancers and small business owners like you.
To enter this type of income in TurboTax Self-Employed or TurboTax Home To
enter this in Turbo Tax Self-Employed (0nline) or Turbo Tax Home & Business
(desktop):
- Start under the Business tab
- Click I'll choose
what I'll work on
- In the "Business Income
and Expenses" section, next to "Profit or Loss from
Business", click Start or Update
- The next screen will ask
"Did you have any income and expenses for a business in 2015?".
Answer Yes.
- Follow the interview until
you reach "Let's confirm your business info". Verify everything
is accurate, then Continue
- You will be redirected to
your business page. In the "Business Income" section, click Start or Update
- Next to "General
Income", click Start or Update
- Manually enter a description
and amount for this income here
