Selling on Mercari

[Katekhet]

Hi!  I made more than $600 by selling things from around my house.  How does this impact my taxes?  

[John-H2021]

You would need to report the income on your tax return and pay the tax on it.

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 then it would be reported on a schedule C (self-employed income). Yu would report the 1099 as income and then deduct the expenses you have against making that income.

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...