Ebay Seller Tax Question

[Yastrzemski Sports]

It depends on what type of tax you are talking about.
Sales tax - do nothing. eBay does all of the work.
Income tax - $10k is a significant number. You should be getting a tax form from PayPal for that amount. You’ll have to claim it on your income taxes but would have to speak to an accountant as to how it affects you in your state.

[Eggoman]

Originally Posted by Yastrzemski Sports

It depends on what type of tax you are talking about.
Sales tax - do nothing. eBay does all of the work.
Income tax - $10k is a significant number. You should be getting a tax form from PayPal for that amount. You’ll have to claim it on your income taxes but would have to speak to an accountant as to how it affects you in your state.

This is NOT QUITE correct.

In NY, ebay started collecting NY Sales Tax on June 1st, I ASSUME that I will still have to file for any and all NY State sales tax owed prior to that date for this tax year, right? Other states were phased in at different times, too.

Or am I missing something???

[Yastrzemski Sports]

Originally Posted by Eggoman

This is NOT QUITE correct.

In NY, ebay started collecting NY Sales Tax on June 1st, I ASSUME that I will still have to file for any and all NY State sales tax owed prior to that date for this tax year, right? Other states were phased in at different times, too.

Or am I missing something???

That’s really a question for an accountant. I have a registered business in ny since 1999 and I have collected sales tax in ny when I sold something here and paid that tax to the state. For out of state sales I have not. So I don’t know your situation - whether you have a registered business, what state you operate in, etc. There are a lot of variables there. I would encourage you to see an accountant so everything is done correctly.

[Eggoman]

Originally Posted by Yastrzemski Sports

That’s really a question for an accountant. I have a registered business in ny since 1999 and I have collected sales tax in ny when I sold something here and paid that tax to the state. For out of state sales I have not. So I don’t know your situation - whether you have a registered business, what state you operate in, etc. There are a lot of variables there. I would encourage you to see an accountant so everything is done correctly.

I am registered in NYS and do have an accountant for those exact reasons.

It just seems to me that because eBay phased collecting NY Sales Tax in mid-Year, I collected sales tax for 5 months and they collected it for the rest.

I will have to file AND pay those first 5 months or so and ebay the balance of 2019-2020 tax year. It's A BIT messy...

[pingman59]

Originally Posted by Yastrzemski Sports

It depends on what type of tax you are talking about.
Sales tax - do nothing. eBay does all of the work.
Income tax - $10k is a significant number. You should be getting a tax form from PayPal for that amount. You’ll have to claim it on your income taxes but would have to speak to an accountant as to how it affects you in your state.

Just experienced a NY state sale where eBay charged the buyer NY state sales tax and then automatically withdrew that sales tax amount from my PayPal account. I was charged the PayPal fee for the entire purchase, which included the sales tax. So, I got stuck with paying the PayPal fee on the NY state sales tax. This really stinks.