| Discussion Forum: Thread 317329 |
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| | | Author: | PatrickGroover  | | Posted: | Feb 16, 2022 23:04 | | Subject: | Taxes | | Viewed: | 142 times | | Topic: | Help | |
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| I am a seller. Is bricklink taking out the taxes automatically? or do I need
to pay them?
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| | | | | Author: | wildchicken13 | | Posted: | Feb 16, 2022 23:08 | | Subject: | Re: Taxes | | Viewed: | 62 times | | Topic: | Help | |
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| In Help, PatrickGroover writes:
| | I am a seller. Is bricklink taking out the taxes automatically? or do I need
to pay them?
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Sale Tax: Yes
Income Tax: No
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| | | | | | | Author: | wildchicken13 | | Posted: | Feb 16, 2022 23:23 | | Subject: | Re: Taxes | | Viewed: | 90 times | | Topic: | Help | |
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| In Help, wildchicken13 writes:
| | In Help, PatrickGroover writes:
| | I am a seller. Is bricklink taking out the taxes automatically? or do I need
to pay them?
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Sale Tax: Yes
Income Tax: No
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I should clarify: BrickLink automatically collects sales tax on U.S. orders.
BrickLink does NOT collect income tax. It is up to you whether or not to pay
your income tax. But BrickLink will not do it for you.
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| | | | | | | Author: | PatrickGroover | | Posted: | Feb 22, 2022 23:45 | | Subject: | Re: Taxes | | Viewed: | 52 times | | Topic: | Help | |
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| | Is There an easy way to see how much I've earned the last year? |
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| | | | | | | | | Author: | wildchicken13 | | Posted: | Feb 22, 2022 23:50 | | Subject: | (Cancelled) | | Viewed: | 46 times | | Topic: | Help | |
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| | (Cancelled) |
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| | | | | | | | | Author: | wildchicken13 | | Posted: | Feb 22, 2022 23:51 | | Subject: | Re: Taxes | | Viewed: | 72 times | | Topic: | Help | |
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| In Help, PatrickGroover writes:
| | Is There an easy way to see how much I've earned the last year?
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Scroll to the bottom of your orders received page and click download.
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| | | | | | | | | | | Author: | PatrickGroover | | Posted: | Feb 23, 2022 23:36 | | Subject: | Re: Taxes | | Viewed: | 60 times | | Topic: | Help | |
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| Thank you so much! Should I be reporting my income from my paypal balance?
or would bricklink's "order total" field work? This will be my first time
reporting income earned from bricklink. I didnt make much so reporting it under
personal income seems appropriate to me.
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| | | | | | | | | | | | | Author: | wildchicken13 | | Posted: | Feb 24, 2022 01:43 | | Subject: | (Cancelled) | | Viewed: | 38 times | | Topic: | Help | |
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| | (Cancelled) |
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| | | | | | | | | | | | | Author: | wildchicken13 | | Posted: | Feb 24, 2022 01:44 | | Subject: | Re: Taxes | | Viewed: | 77 times | | Topic: | Help | |
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| In Help, PatrickGroover writes:
| | Thank you so much! Should I be reporting my income from my paypal balance?
or would bricklink's "order total" field work? This will be my first time
reporting income earned from bricklink. I didnt make much so reporting it under
personal income seems appropriate to me.
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Did you receive a Form 1099-K from PayPal? If you are below the 1099-K threshold,
then you may not have to report your income at all… I reported the amount on
my 1099-K as my business income (Schedule 1, Line 3) and then used the cost
of goods sold and expenses to figure out my net profit.
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| | | | | | | | | | | | | | | Author: | peregrinator | | Posted: | Feb 24, 2022 06:49 | | Subject: | Re: Taxes | | Viewed: | 59 times | | Topic: | Help | |
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| In Help, wildchicken13 writes:
| | Did you receive a Form 1099-K from PayPal? If you are below the 1099-K threshold,
then you may not have to report your income at all…
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I'm not an accountant but this seems like bad advice, especially considering
how high the 1099-K threshold was for 2021 (it's $600 now but that's
for 2022 and onward).
Anyway, I would use the total from BrickLink (assuming you didn't sell anywhere
else) while deducting the PayPal fees and "partner fees" (sales tax) as well
as your business expenses (what you spent on Lego, capital expenses, operating
expenses). Also keep in mind that the value of your inventory (which means: what
you spent on your inventory, not what it's currently valued at) needs to
be considered as part of your revenue.
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| | | | | | | | | | | | | | | | | Author: | PatrickGroover | | Posted: | Feb 24, 2022 11:08 | | Subject: | Re: Taxes | | Viewed: | 44 times | | Topic: | Help | |
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| I did not receive a 1099 probably because I just started selling Dec 13th but
I do believe I made enough to in that two week period for the IRS to want to
take a chunk of it lol
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| | | | | | | | | | | | | | | | | | | Author: | Beebs | | Posted: | Feb 24, 2022 11:15 | | Subject: | Re: Taxes | | Viewed: | 54 times | | Topic: | Help | |
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| Ultimately, what and how to report is complicated and it's always advisable
to speak with a tax professional. From my research, it seems there are at least
two options. First is to report as a business, itemizing your income, breaking
down your expenses (supplies, cogs, fees, taxes [yea not exactly an expense,
but comes out of your total income], etc...). There are certain requirements
that can be found online that need to be met to truly qualify as a business.
Otherwise you are reporting sales as "hobby", which over the last few years the
government decided to screw the population on. Unless I'm mistaken, they've
removed expense related deductions from hobby sales, which means you are taxed
fully on your gross income...no deductions for CoGS.
I've heard about shoving everything under capital gains as well, but not
sure how that would work.
I'm not looking forward to next tax season 
In Help, PatrickGroover writes:
| | I did not receive a 1099 probably because I just started selling Dec 13th but
I do believe I made enough to in that two week period for the IRS to want to
take a chunk of it lol
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USA, Pennsylvania
