Which Turbotax (Windows) should I use as casual Ebay seller?

[leopardson]

Hi all!

I've been selling on ebay since 2020 due to COVID, very high inflation, and trying to make ends meet so I've been selling Pokemon and Magic cards (some vintage) to earn extra income but I don't have a business and only made about $5,000 last year 2022. However, my Cost of Goods sold (COGS) is probably around $4,000 so my net is $1000 after all ebay fees and shipping. It really wasn't a lot and I actually lost money during several transactions on ebay.

Ebay collected all my required taxes since I live in CA.

My question: Which Turbotax (Windows 11) should I use since I'm not a business and don't have a reseller license? I just bought some collectible cards and resold them later on when they went higher.

I kept all my receipts and I paid all taxes of the items I did purchase on ebay and elsewhere but I don't know which Turbotax allows Cost of Goods sold.

Or should I declare all these cards as Investible Income like gold coins?

Thanks!

[JohnB5677]

No, you should not declare the cards as Investible Income like gold coins.  To be clear, the sale gold coins is taxable.

Although you don't think so, the IRS does consider you a small business, and you should enter your information on a schedule C.  

Please be aware that you will be charged income tax on your profits, and self-employment tax. The self-employment tax rate is 15.3%. That rate is the sum of 12.4% for Social Security and 2.9% for Medicare.

[leopardson]

Thanks JohnB5677 for the reply and clearing up collectibles from gold coins. That really helps.

So which Turbotax version should I get then for self employment?

BTW, I researched some more and found out that since I went thru ebay's transactions system (i.e., 3rd party settlement) to receive payment and not direct payment cards (like Paypal or debit cards), I may not receive a Form 1099K. My transactions were way below 200 as stated and no where near $20,000 for 2022.

From IRS gov site

"Further, for calendar years after 2021, if you accept payments from a third party settlement organization, you may receive Form 1099-K from that organization. A third party settlement organization connects the parties together (for example, an internet sales site). 

You will receive a Form 1099-K if you accepted payments from a third party settlement organization where,

• the total number of your transactions exceeded 200, and
• the aggregate amount of payments you received with respect to any participating payee exceeded $20,000 in the calendar year."