Paypal & Taxes

[wingzrow]

Actually it works a little differently. They report you if you have received over $20,000 IN PAYMENTS. That means if you happen to sell something off of eBay for $100 it will be counted on the 1099K. This is why Paypal is reporting instead of eBay itself.

I have all my information on the online program called "outright" (which I highly suggest if you are self-employed and sell online like me), and that program has kept up with all my sales, and my expenditures for shipping and etc. You give them your Paypal and eBay account info and they import all the proper information automatically. You do need to manually put in other expenses like what you paid for things, and the amount you spent on gas if you are driving around specifically to find things.

Ok, i've entered everything into outwrite. What do I do from here? How do I actually report and do my taxes? I have the form paypal sent me, I have outwrite verifying what I made. now what?

I literally have no idea what to do from this point on.

I don't have any physical form to send out.

Is this the right form to print and fill out?

http://www.irs.gov/pub/irs-pdf/f1040sc.pdf