K and A asked:
Years prior, I had made roughly $32k and received $5k back but was paying taxes as I received my paychecks. I am head of household and have a son and am single. If I made $47k this year but $10k was on ebay, does that reduce my return?
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2 users responded in this post
How many dependants did you claim to get so much back? What you get back only reflects how badly you screwed up figuring withholding on your job. My guess would be 12% of ebay income. But if you claimed deductions for your home office; you can just ask the IRS when they come to audit you.
Assuming your ebay trading does rise to the level of a business (at a profit of $10K it would appear to) you would report it on Schedule C. The profit would also be subject to self-employment tax, making your combined rate on the profit 29.2%.
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