There are two ways that the income could be reported for the video games sales. One method is reporting as Miscellaneous Income as detailed in the previous answer. Another way is to report the items on Schedule D as Long Term Capital Gains. The long-term capital gains tax rate is 0%, 15%, or 20% depending on your taxable income for the year. This may result in a reduced tax liability and may be the best way to report the sales.
In TurboTax Online:
- Type Collectibles in Search window in the upper right corner
- Click the link to Jump to Collectibles
- Did you sell any of these investments in 2021?, Yes
- Choose Other and Continue
- Who brokered sale?, Type Collectibles
- On the Next page select Collectibles from the Pull-Down menu
- Enter the information, when received, date of sale, proceeds, and amount paid for items, Continue
- Enter sales expenses such as shipping, etc. Continue
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