No one is too rich or too poor to pay something based on their actual earnings from profit.

I think everyone should pay their taxes and their fair share of taxes from the bottom to the top. The total figures from the Schedule C and SE forms are then added to the appropriate boxes of your 1040 Individual Income Tax Return.Īside from being far cheaper than an accounting firm, online services such as TaxAct make filling out and filing a return fast and fairly easy. Once you have totaled up all of your sales, expenses, and purchase costs, as Ina and lessthanthreerecords have already indicated, you simply need to enter the various figures into an IRS Schedule C and complete a Schedule SE for any additional self-employment (i.e., social security) tax that may be due. If you calculate and enter all of your sales, expenses, and purchase costs by yourself and utilize an online filing service such as TaxAct, your cost to file is less than $100.00.

Stating that you are/were simply engaged in a hobby may end up costing you more in IRS penalties, because, should the agency feel that you were not compliant with the existing tax laws, it can audit as many previous years of returns as is deemed necessary for compliance. While everyone likes to complain about the wealthiest 1% who do not pay enough taxes, it is the middle class who tend to illegally evade tax payments, because their under the radar investments are typically not subject to audits and/or annual IRS document filings.

Given that the $600.00 threshold has been on the books for decades, filing enforcement has been long over due. Tax Debate Creates Deep Divide Among Online Sellers

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