View Full Version : To claim or not to claim.

06-29-2006, 09:08 AM
Hello. Jennifer from MD here. I have a question about taxes and small business. I recently began my own side business where I sell items on eBay for people and receive a small percentage of the sale price for doing so. the business is seeming to pick up and I am not sure if this is something I need to file with the IRS and also, if I should apply for a tax ID number, etc.
Any and all help in this area would be appreciated. I have heard that I should file because of the write-off opportunity and I have also heard that I don't have to.
I just want to do what is right and beneficial.
Please advise.
Thanks so much!

01-27-2014, 03:10 PM
I'm pretty sure it has to do with how much you make. If you're making more than $600 a year, you need to file. But, it could be beneficial for you to do so anyway.

If you receive the payments in your PayPal account, there is a good chance that you will have to file anyway. If you make more than $10,000 (which doesn't just include how much YOU make...it's how much the items sell for completely, including shipping charges) and have more than 200 transactions in a year, you will receive a tax form from PayPal.

01-27-2014, 05:25 PM
Erm, this post is from 2006, I doubt he'll be seeing it now.. lol..

01-28-2014, 02:10 AM
Yes, like the above post said, you need to file tax if you have made $600 or more within a year, which then you will need to complete the W-9 form. However, I believe if you have considered it is going to be part of the business, then you are likely to register the business and have to pay the tax. I'm not sure about PayPal, which I would say if you don't constantly receive money, then you don't have to claim and it also depends on the amount of how much money you've received.