topic Reporting Poshmark/Reseller expenses in Business & farm

Reporting Poshmark/Reseller expenses

CrystalM — Fri, 09 Aug 2019 14:46:48 GMT

I'm a seller on Poshmark and Poshmark started taking taxes out from my sales and stated that i didn't have to file my sales in my taxes? Is that true?

Also should I report and file my expenses?

What form should I use for all of this and where can I get one?

Thank you

Re: Reporting Poshmark/Reseller expenses

TomYoung — Fri, 09 Aug 2019 13:04:27 GMT

As far as I can see Poshmark is a site for selling apparel so when you say you are a "reseller" you are buying apparel from others and then attempting to resell those items, at a higher price, on Poshmark?

If that's correct, then the only "taxes"I can think of that Poshmark could possibly be taking out of sales are sales taxes, and sales taxes really aren't a topic of this forum. There's no way that Poshmark could be engaged in income tax "withholding" since your relationship to them is an "independent contractor/sole proprietor", a situation where there's no income tax withholding involved.

From an income tax perspective you certainly can deduct all "ordinary and necessary" expenses you incur in trying to make a profit from your activity.

Re: Reporting Poshmark/Reseller expenses

CrystalM — Fri, 09 Aug 2019 14:49:52 GMT

What forum should I be posting in for sales tax so I can get information on what form to use?

Re: Reporting Poshmark/Reseller expenses

TomYoung — Fri, 09 Aug 2019 15:09:35 GMT

To the best of my knowledge and belief there's no forum within Intuit's site's that addresses sales taxes. Sales tax rules are set by the individual states so you'd want to look at your state's information sources.

Re: Reporting Poshmark/Reseller expenses

Anonymous — Fri, 09 Aug 2019 16:41:49 GMT

in addition to state sales taxes many localities also have a sales tax. i think your best course of action is to sit down with a tax pro that can go over all you tax filing responsibilities - income tax, sales tax possibly other taxes.

Re: Reporting Poshmark/Reseller expenses

CrystalM — Fri, 09 Aug 2019 21:03:29 GMT

Alright, thank you so much!