1099

novak201 — Tue, 10 Mar 2026 05:42:24 GMT

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?

Re: 1099

John-H2021 — Wed, 31 Aug 2022 20:47:20 GMT

There are 2 ways to report the income.

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.

Here are a few helpful links

https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...

https://turbotax.intuit.com/tax-tips/self-employment-taxes/4-tax-tips-for-money-making-hobbies/L89qz...

https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

topic 1099 in Self employed

1099

Re: 1099