posted on July 16, 2001 07:46:46 PM
I usually just lurk around reading everyones great ideas but I have a question and hope someone can help. When I filed my taxes I did what I thought a good citizen should do and filed for my ebay profit. Today I received a letter from the dear old IRS asking about self employment taxes and asking if I should not be paying them also. I am not very happy with that as it is another chunk of my profit to go along with all the other people who get some of it. (ebay, auction watch, paypal, billpoint ) What are your thoughts? Do any or all of you pay self employment taxes? I really have learned a lot from this board and enjoy reading the interesting things on here.
posted on July 16, 2001 08:27:05 PM
I think that the self-employment taxes are "mandatory" if you have more then $400 income from your business -- aren't they? You need to get all the publications and instructions that go with Schedule C and figure it out. I think the IRS even has a small business packet they'll send to you to help you figure out how to file... http://www.irs.gov/smallbiz/index.htm
( http://www.irs.gov/bus_info/sm_bus/smbus-cd.html )
Violetta
(Not known by this nickname anywhere but here.)
posted on July 16, 2001 08:28:54 PM
I fill out a schedule C, and and that form enables me to take deductions, such as what I paid for the items, so in actuality, I pay much less in income tax, than if I just put it under misc income. I pay SE tax.
