Quote Originally Posted by wingzrow View Post
So I got a form today from paypal saying they reported that I made over $20,00 gross in the year.

My question is, what exactly do I have to do from here? Do I need to fill out a tax return form or something?

I'm totally clueless when it comes to this sort of thing.
It's really not tough, you take whatever the gross amount is and you subtract the costs of selling (actual shipping, packaging materials, Paypal and Ebay commissions and the cost of the goods originally) and whatever is left you report on your individual income tax form as income. Be sure to have receipts for the shipping and packaging materials in case of an audit. You can print various reports on Ebay to show what commissions you paid last year. You then pay taxes at your individual rate on this income.