Yes, you are legally obligated to pay income tax for things you sell on eBay, but the IRS tries to make a distinction between those who sell only occasionally and those who sell more regularly. Classen/ullstein bild via Getty Images Do you have to pay income tax on the stuff you sell on eBay? The answer is yes — depending on how you ask the question. If you ask, "Am I legally obligated to pay income tax if I make money selling things on eBay?" the answer is an unequivocal yes. IRS Fact Sheet #FS-2007-23, "Reporting Auction Income and the Tax Gap," states, "all income from auctions, traditional or online, and consignment sales is generally taxable." (There are exceptions — occasional garage or yard sales don't have to be reported.) However, the IRS goes on to qualifying that by stating, "Some people sell a product or service online as a hobby. This income generally must be reported" [source: IRS]. The IRS tries to make a clear distinction between individuals who sell … [Read more...] about Do you have to pay income tax for stuff sold on eBay?
Paying irs back taxes
You save some of your pay after tax ... but the interest you earn is taxed, too. MarkgrafAve/iStockphoto/ThinkStock Whether it's from a financial planner or dear ol' dad, you've probably heard this advice over and over: Save some money for a rainy day. For most folks, savings starts with your paycheck – it's income you've already paid your taxes on, tucked safely away in an interest-bearing account. But after all that responsibility, you may be dismayed to learn that the interest you've earned on your little nest egg is subject to its own tax. Why, you may wonder, should the Internal Revenue Service get another shot at that money? But think about it like this: While it's not exactly the same as standing out on the corner hawking lemonade, interest is still additional money you earned. And any money you earn is money that the government can politely pinch a piece of. The good news is that your interest isn't going to be taxed in any more interesting or complicated a manner … [Read more...] about How does the IRS tax interest income?
From Bartering to Bitcoins When online sales of virtual assets for hundreds and thousands of dollars became commonplace, the U.S. government took notice. When the GAO issued its report in May 2013, it began by comparing virtual currency transactions to another type of cashless transaction, bartering. Bartering is the exchange of goods and services for other goods and services without any actual money changing hands. In the 1970s, small bartering economies sprung up across the U.S. At first, the IRS didn't take notice, but within a decade, the alternative barter economy was doing serious business with transactions valuing in the area of $200 million a year. In the mid-1980s, the IRS decided to add bartering income to its list of taxable transactions. Again, the issue was cash value. If you trade someone an old TV (cash value about $40) for two hours of their window-washing services (worth $60 in the cash-based world), then you've technically earned $20 of taxable income. It … [Read more...] about Can the IRS tax virtual money?
By Kurt Snibbe | [email protected] | Orange County RegisterApril 15, 2018 at 5:37 pm Tax takeaways April is a big month for taxes, since the deadline to file is Tuesday, April 17, and two days later will be Tax Freedom Day, when the nation as a whole has earned enough money to pay its tax bill for the year. Tax Freedom Day takes all federal, state and local taxes and divides them by the nation’s income. This year, Tax Freedom Day falls on April 19, 109 days into 2018. Tax freedom day In 2018, Americans will pay $3.39 trillion in federal taxes and $1.8 trillion in state and local taxes, for a total tax bill of $5.19 trillion, or 30 percent of the national income. Taxes by state The total tax burden across states varies considerably due to differing tax policies. This means that states with higher incomes and higher taxes celebrate Tax Freedom Day later. Federal filing statistics Revenue and deficits Federal gross tax collections in trillions Federal gross tax collections in … [Read more...] about In April we pay our taxes and, by one count, stop paying them
Yesterday’s technology, tomorrow. That fairly sums up the problem with the federal government information technology infrastructure. That, and the cumbersome and antiquated acquisition process to purchase today’s technology sometime in the next three years. Not to mention the dreaded certification process of the 2002 Federal Information Security Management Act (FISMA), which morphed into the 2014 Federal Information Security Modernization Act — the new and improved FISMA . And don’t forget the Federal Risk and Authorization Management Program ( FedRAMP). All catchy acronyms that have failed to solve one of the most perplexing problems for government — how to build and secure a system that works. The latest poster child is the meltdown of the online IRS tax filing system . How many billions of dollars were spent in the name of FISMA, FISMA and FedRAMP? And what we end up with, instead of a working system, is a system that goes down … [Read more...] about IRS Tax Day glitch exposes antiquated tech infrastructure