Assuming that they all sold at that amount , would be in good shape. But I know better than to assume that and we will work on listing about the same amount tomorrow.
Took about 2 to 3 hours to take pictures, research, weigh the packaging, and enter all the details in Ebay to get them listed.
If we do that everyday it will amount to a 15 hour a week job. Now if only it pays like one.
We are putting the work in, now if we can just make some money.
I hope that I did not list stuff at too high prices and stuff doesnt sell. don’t just want to give it away either , though.
I won’t use ebay because the benefits people look at it when its money going into your bank account? But im in UK so it may be different where you are
Yes, you generally have to report and pay taxes on eBay sales if you make a profit
, according to the IRS (.gov). While occasional sales of personal items at a loss may not be taxable, regular, profit-driven sales are considered income. A 1099-K form is issued if sales exceed certain thresholds (e.g., $600+), but taxes may be owed even without a form.
Key considerations:
Taxable Profit: Taxes are based on profit (selling price minus cost of item), not just total revenue.
Business vs. Hobby: Regular sales for profit are considered a business, requiring taxes on net earnings, usually if they are $400 or more, notes 1800Accountant.
Form 1099-K:
As of 2024, the threshold is $5,000, reducing to $600 in 2026, says Watter CPA.
Sales Tax:eBay generally handles sales tax collection for most states, according to eBay.
It is recommended to keep records of all sales and expenses.
, but rules differ significantly between selling personal items and running a business. Occasional sales of personal, pre-owned items usually don’t affect benefits, but regular buying/selling for profit (trading) must be reported to the DWP as self-employment income, reducing Universal Credit by 55p for every £1 earned.
Key Rules and Guidelines
Selling Personal Items (Decluttering): Selling your own unwanted clothes, furniture, or toys does not need to be declared as income. However, if the proceeds are large, they may count toward your capital/savings limits.
Trading (Business): If you buy items to resell, make items to sell, or sell for profit regularly, this is considered a business. You must report this to the DWP and HMRC.
Income Thresholds: The HMRC “Trading Allowance” allows you to earn up to £1,000 per tax year without declaring it. However, if you are on Universal Credit, you may still need to report this activity.
Platform Reporting: As of 2024, eBay is required to report to HMRC if you sell 30 or more items or make over roughly ÂŁ1,700 (euro 2,000) in a year.
Impact on Benefits
Universal Credit (UC): If you are trading, you must report income and expenses monthly. Your benefit is reduced by 55p for every ÂŁ1 of net profit.
Contribution-based ESA/JSA: These can be affected if you are deemed to be working, depending on hours and earnings.
Steps to Take
Notify the DWP: If you are buying to sell, report a “change of circumstances” in your UC account (work and earnings).
Keep Records: Track all income and allowable expenses (e.g., postage, packing materials) for your monthly reporting.
Check Capital Limits: If you sell high-value items, ensure your savings do not exceed the ÂŁ6,000 or ÂŁ16,000 thresholds for UC.
Regardless, I dont think its going to affect me as far as SSDI goes. The profits will be well below the ticket to work threshhold. There is no way in hell I’m going to be able to sell 1200 dollars a month in used items. and certainly not make a profit of that much. I’m sorry that you are unable to do it, but I should be fine as long as we watch the income tax issue at the end of next year.
I’m just hoping to be able to pick up a few hundred a month.