I do Garage sales and Resell new items at the same time these year about little over $2500 made by people sending through Zelle
Would that effect my taxes? do i have to report it? im sure i will be getting a 1099-K from Zelle
Thank You!
Hello
There are 2 ways to report the income.
1. 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
2. If it is a business the 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 againist making that income.
Here are a few helpful links
A lot of ebay sellers are just selling old stuff and don't consider it a business, hence falls under "hobby" as you described it. Selling on ebay has fees and shipping costs involved. So if we get a 1099K report with $2000 gross but in reality only netted $1500, how do we account for that on our tax forms if we are not allowed to deduct expenses?