I'm selling on ebay but not set up as a business. Will I have to pay any self employment taxes ? Can I use packing supplies and cost of goods to defray any taxes I might owe?
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
If it is a business then it would be reported on a schedule C (self-employed income). You would report the 1099 as income and then deduct the expenses you have against making that income. You would pay self-employment tax on the net profit.
