How do I enter income that has no forms from reselling items on platforms such as mercari, marketplace and poshmark? I do not exceed 20,000, so I don’t recieve any 1099.

[bikerchic994]

This is my first year as a reseller. I was told to report even if I don’t exceed 20,000 but I have no idea how to get total amount of what I made from platforms because I have no received any forms.  I also am not sure how to deduct what I initially paid for these items. Please help! Is this worth sitting down with a professional?

[Bsch4477]

You are considered self employed and as a business owner you have the responsibility to track and document your business income and expenses and report them on Sch C. 

[AmyC]

1. You will need to report the income as cash/checks earned as business income.

2. You are required to report the income regardless of the amount since it is self-employment. Enter it like this:

1. Open or continue your return in TurboTax
2. Search for Schedule C and select the Jump to link at the top of the search results
3. Answer Yes on the Did you have any self-employment income or expenses? screen
4. Answer the questions on the following screens until you arrive at Let's enter the income for your work
5. Select Other self-employed income and select Continue
6. On the next page you can enter any cash, personal checks, credit card payments, or cryptocurrency (Form 1099-K) related to your self-employment

3. The items you sold are your inventory or cost of goods sold. Be sure to add how much you paid originally for the item. If you haven't been keeping track of your purchases and sales, you will need to go through your paperwork and create a system. The IRS does expect you to keep track of what you bought and sold.

4.  Sitting down with a professional will not create the system you need before you go in. The program is easy to use, the hard part is tracking down what you paid for the items and the amounts received. However, you should always do what you feel is best for you. Here are some tips to help:

• Tip 1:A spreadsheet tracking the different sellers and items will help you learn which type items sell best where along with your profit margin. You can start simple with just your purchases and sales and work your way up as your business and interest grows. See Publication 583, Starting a Business and Keeping Records
• Tip 2: You will file a Schedule C and must pay both income tax and self-employment tax on the income. When you get a paycheck, work takes out federal tax, Social Security tax and Medicare. Now, you have to pay all the parts instead. See About Schedule C (Form 1040), Profit or Loss from Business and Self-Employment Taxes. If you earn very much through the year, you will need to make estimated payments.
• Tip 3: My favorite link is to the IRS small business center which has videos and help to earn more money and keep more of what you make! See Small Business and Self-Employed Tax Center