It probably going to be capital gains if you are not a registed business. We will probably start hearing more about towards the end of the year.
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You can file a Schedule C as a sole proprietorship. I’ve done this as I live in a state (MA) where the $600 reporting level has already been in place for a few years.
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Thanks @ToddW and all you fine peeps of CHU. This definitely helps. I emailed my tax guy, but I know I’m going to get back a convoluted answer that makes things even more confusing. TAXES ARE SO MUCH FUN!!!
I have done that also when I had a spot in an antique mall years ago. I will look at the updated sch c later this year.
I believe it is staring for tax year 2022, but that doesn’t mean eBay won’t send the irs a 1099
“On your behalf” at the conclusion of 2021.
I know of one instance they did this to someone at the end of 202 who didn’t meet the thresholds for 2020…
Past years I made very little and wasn’t worried. Buy 2021 has Been a huge year in sales for me, and I’m keeping very detailed records of what I’ve purchased (expenses) and what I’ve sold. But I’m not sure if I should create an Llc or file a schedule C yet…whichever allows me to claim expenses vs. gross profits with least amount of hassle/risk from the irs.
Just hope you’re not audited, cause then you will have to account for any “deposits” made into your banking accounts. 
You probably have more to worry from your local state taxes than federal.
My state (MA) compared my 1099-K with what I reported and billed me for the difference because I had mistakenly taken out refunds from the top line 1099-K total instead of listing it as a deduction in the Schedule C.
Bottom line, if it’s reported to a government entity, you had better account for it. It’s very simple these days to do a simple comparison and find differences.
I’m really torn about how to proceed. I’ve never been a big reseller, but with a baby on the way I am trying to raise some extra cash that doesn’t require to me get a second job. I don’t want any hassles and want to be above board as well.
I’m also a total noob at reselling. I don’t know what to order, or where from. Need to keep overhead and costs low but need to sell enough at a decent price to make it worth while.
Move to a state with no state income taxes… one thing I love about Texas… but living now in Austin, damn property taxes are starting to get a little crazy…
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I’d recommend just filing a Schedule C especially since you’ve kept detailed records and it’s simple compared to LLC and business inventory rules. You are a single proprietorship by definition doing part-time sales (just yourself, no employees, no office/store)
You enter your 1099-K payments as gross income and then deduct expenses for items sold (cost of goods, refunds, shipping, fees, office/shipping supplies, any storage fees and I even include mileage to buy/ship stuff).
Please note that if you are selling very valuable rare comic books (say an AF15) that you have held for a long time (years) then it actually may be considered an investment and subject to the capital gains taxes on collectibles instead so please consult a tax professional if this is the case.
The only ones really making out on all this extra work are the tax software companies (TurboTax) and accountants because of the extra forms/paperwork that are needed.
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I love being spied on and having my data collected 
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They’re listening too… smartphones made the NSA creme their pants when they started recording everyone…
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Who doesn’t deposit a total of $10,000 over the course of a year into their checking account? This amendment is meaningless.
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And by the way, that’s just for checking accounts. PayPal, eBay, Venmo, Cash App is still $600.
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Guess eBay knew something since they just deposit directly to your checking account now, same with Mercari.
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I’m sure they did. The Dems have been laying the ground work for this for awhile.
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It’s only a requirement for those 3rd parties like eBay, Paypal and such to report to the IRS. It’s meaningless because everyone should be reporting any and all income from sales on their tax returns. This is just a way for the IRS to have the paper trail to see who’s lying and who’s not lying on their taxes.
No it’s not. The Dems want all BANKS to report in and out totals of all bank accounts that exceed $10,000 in annual deposits. This has nothing to do with eBay and PayPal and the rest.
Are you sure it’s a running-total annual amount? I thought is was on a per-deposit basis.