Selling your own stuff on ebay and unemployment In California (2024)

FAQs

Selling your own stuff on ebay and unemployment In California? ›

if it`s income, then yes. But deduct all expenses you have: cost of goods sold, ebay fees, shipping fees, storage/rent, utilities, if you drive to post office to ship, your car expenses. shipping supplies, etc etc.

If you make $600 or more in sales on eBay in a year, you'll receive a 1099-K. 1099 forms report the amount of self-employment income you made to the IRS, and it's required for all payers to send an eBay 1099K to them and a copy to you.

You may receive a Form 1099-K from eBay, depending on the gross amount of the payments you received from your sales of goods and services on eBay. You can use this information on your Form 1099-K to help you comply with your tax obligations. If eligible, you'll automatically receive a Form 1099-K in the mail.

So if you're bringing in income through a side hustle, such as by building websites for clients through Fiverr or selling through your Etsy shop, you'll need to include that when you certify your weekly benefits with your state unemployment office. States have their own way of calculating partial unemployment.

You can sell personal items on ebay second hand and as long as you can show that they were personal items and not bought to sell on this is fine within reasonable limits. The Avon stock is different and will be classed as earnings so you would need to tell them plus the tax office.

if it`s income, then yes. But deduct all expenses you have: cost of goods sold, ebay fees, shipping fees, storage/rent, utilities, if you drive to post office to ship, your car expenses. shipping supplies, etc etc.

There are many surprising ways someone can be considered self-employed, such as selling homemade goods, buying and selling items, and taking care of pets. Even if income is earned through unconventional means, it likely needs to be reported for tax purposes and may be subject to self-employment tax.

You may not be running a business and are only selling personal items. However, the IRS considers your sales activities on eBay as a business due to the fact that you sold items and the IRS requires that all income be reported. Follow these steps to enter your Form 1099-K information: 1.

Using eBay to make profits is usually a business

If you sell and buy articles on eBay in order to earn money, the IRS will likely classify your sales activities as a business. This means you will have to report net income from eBay sales.

If we sold more than $600 worth of anything during each year, it will be reported to the IRS and their system will treat it as reportable income. Even if you are selling at a loss, or reselling a used item of yours, and you won't legally be required to pay any tax on it.

What disqualifies you from unemployment in California? ›

"An individual is disqualified for unemployment compensation benefits if the director finds that he or she left his or her most recent work voluntarily without good cause or that he or she has been discharged for misconduct connected with his or her most recent work."

If you work less than full-time, you may still be eligible for partial UI benefits. The first $25 or 25 percent of your gross total earnings for the week (whichever is greater) will not be counted toward your benefit amount. The amount remaining will be deducted from your weekly benefit amount.

Self-employment tax

Generally, you must pay self-employment taxes if your net profits are $400 or more. Self-employment taxes are Social Security and Medicare taxes. Use Schedule SE with your tax return to help you determine how much tax to pay.

You DO NOT lose your Social Security payments if you earn extra income. You are allowed to make up to a certain amount without any adjustments.

Unless I'm misinterpreting the tax code, a seller who doesn't make enough taxable income to owe income tax would still be required to pay self-employment tax if their net earnings from eBay sales exceeds $400.

You owe taxes on your sales whether you receive a Form 1099 or not. The limit for 2024 at the moment is $600 which may change at the whim of the IRS or Congress.

You could use "Sales" or "Retail Sales" as her occupation.

Sole Proprietors: If you own an online business as a sole proprietor, you are considered self-employed for tax purposes.