Whether you are a career eBay seller in Idaho, or just making some extra cash, taxes can be a very daunting part of your new venture.
Do Idaho eBay Sellers Have to Pay Taxes?
Any profit from your eBay sales is considered when you determine your taxable income. In addition, you may need to pay Idaho self-employment tax if you generate more than $400 in profits.
And don’t forget about the sales tax that you are required to collect from buyers in those states.
PayPal Did Not Send You Form 1099-K on Earnings
PayPal is only required to report payments you receive if the total payments for the year were over $20,000, and more than 200 transactions.
Even if you do not receive a Form 1099-K, you are still required to declare the income and pay the associated taxes. PayPal must disclose these payments to the IRS and most states, so the fact that you got paid didn’t get swept under the rug and forgotten.
Tax Deductions for Your Idaho eBay Business
Every time you make a sale on eBay, you should record the expenses. For instance, how much the item originally cost you, labor, hauling, shipping, advertising, and fees along with any taxes associated.
Making it yourself.
If you are making the product yourself, including the costs of direct materials, tools, and supplies.
Idaho Home office.
You’re only eligible to claim the Home Office Deduction if an area of your home is used exclusively for managing your Idaho eBay business.
This includes the office computer, office chair, and office desk associated with your Idaho business on eBay. You may be able to claim a portion of your router and Internet subscription, as well.
The most common vehicle deduction is done by using the Standard Mileage or Actual Cost method.
Fees associated with Idaho tax preparation and tax-filing are deductible.