Do I file Hobby Ebay sales with no profit as business or hobby?

[arthurjanet1]

I received a 1099-K from paypal for sales on ebay.  I live in MA and sold over $600 but far less than the federal $20,000.  I did not make a profit on the sales, as they were all my own household items that I bought for more money and no longer use, so I sold for less, like jewelry I don't use, clothes that the kids grew out of, etc.  Do I put this information on Schedule C as a business or under additional income under hobby? 

[VictorA]

Online garage sales are not taxable unless you sold the items at a gain

Link: 
https://www.irs.gov/businesses/small-businesses-self-employed/tax-tips-for-online-auction-sellers

There are new Massachusetts reporting requirements for third party settlement organizations – Form 1099-K, here is a link to the website:

https://www.mass.gov/service-details/new-massachusetts-reporting-requirements-for-third-party-settle... 

Text in question: "Beginning with Forms 1099-K filed for the 2017 calendar year, third party settlement organizations (“TPSOs”) must report the gross amount paid in settlement to a payee with a Massachusetts address when the gross amount paid in settlement in a calendar year is $600 or greater and is subject to taxation under G.L. c. 62, regardless of the number of transactions between the TPSO and the payee."

[arthurjanet1]

I am not clear on what you are saying. Do I report this or do I not report it?  If yes, how?

[Anonymous]

It appears the sale of your personal items falls within the Massachusetts "casual and isolated sales" category.  Please see:  <a rel="nofollow" target="_blank" href="https://www.mass.gov/guides/sales-and-use-tax">https://www.mass.gov/guides/sales-and-use-tax</a>
If so, you don't have to report the sales since they aren't taxed at the federal or state level.  You have two choices:
1)  omit the income and if you hear from the IRS or DOR, reply with an explanation, or
2)  include the income on Form 1040, line 21, Other Income with two entries, first to report the 1099-K income and second to report the 1099-K as a negative number with a brief statement such as "sale of personal items at a loss."
For the second option, select Income & Expenses > Less Common Income > Miscellaneous Income, 1099-A, 1099-C > Other reportable income.  You will enter the income then negative amount separately.