One of the biggest worries people have about eBay selling as a career is the taxes. I'm here to tell you it's not that bad! I filed when I sold years ago and I've filed as a self-employed seller the last 2 years. I am thinking about getting an accountant this year because I worry I am missing some deductions.
My tip for the day: Save your receipts and track your mileage! (All those trips to the thrift store add up!)
I am not a tax professional but I will share a few resources/tips that I use to make tax time easier.
- Save your receipts! From the thrift store, from that roll of tape you got at Wal-Mart, from the Post Office...save them all! I have an envelope I keep by the computer and stick them all in there when I come home from a shopping trip. If I have purchased items for personal use, I note the cost of those on the bottom. Example: "-6.99 Steph shoes"
- Remember, you can only deduct the cost of items that have sold. Inventory purchased but not yet sold cannot be written off.
- If you purchase supplies on Amazon you can access your orders (and print receipts out) for at least a year after. I like that.
- I pay for Go Daddy bookkeeping through the eBay site. It is amazing software and I love it. Makes entering receipts and mileage so simple!
- Get a notebook to write things down that may be important later.
- If you purchase clothing at a by-the-pound store, jot down the weight when that item sells. That info should be right in your listing and it will make things much easier at tax time.
- Speaking of mileage, there are lots of mileage apps on android and iTunes.
- You can write off a percentage of your mortgage/rent/utilities if you have a dedicated area in your home that is used only for eBay
- I always file on average1040.com
- I really wish I could think of one more but I can't right now. :)
THIS is my landing post...you can click here to see a list of every post this month!
See all the Nester's 31 Days participants HERE!