I sent some items to a particularly active consignment service so they could sell them for me. The gross proceeds of this were more than $600, a limit I see being thrown around often, but the net was slightly less than $600. I asked them about tax forms, but they said that they did not send those out.
I have a record of how much the consignment store paid me for each item, as well as how much each item cost me to obtain to begin with.
How do I report these sales? What form do I use, since I'd be making the form myself? There isn't much info about this, and most pages just say that they should send tax forms.
This income is reported on Schedule C as self-employment business income.
You would enter the gross income that you received and list the expenses including the cost of the items and any expenses from sending the items to the consignment service including mileage or shipping. If you use an area of your home exclusively for your business, you can also take a home office deduction.
To enter this income into your return, follow these steps:
In your return:
Please see this TurboTax Help article about self-employment. This TurboTax Tip has helpful information about the home office.
So I would be required to enter it under a "business", then? I couldn't find the exact section you mentioned, but I did see one for Schedule C that wants me to do that.
Yes. The IRS considers any self-employment income you earn to be a “business” simply because you were not someone’s employee.
Here’s how to set up Schedule C: