You will also need to file a Schedule SE (self employment tax) if you net $400. Message >>>Archived Message
Posted by Trish at dollymall on May 1, 2022, 6:38 pm, in reply to "1099K's from e-Bay"
On your Schedule C you can deduct many things to offset your earnings, even all the way to declaring a Loss. However, if you have $400 in earnings AFTER expenses and Cost of Goods, you will need to file a Schedule SE and PAY THE APPROPRIATE TAXES.
You can deduct things like the shipping, etc., of course. You can also deduct advertising, internet fees, computer related expenses, office supplies and more. See a Schedule C for the list of deductions.
If you file Schedule C, you now also need to file Schedule 1 - Additional Income and Adjustments to Income - it will very likely be all zeros except Line 3 (Business Income or Loss)