jeffweico | 11-28-2014 10:12 PM | Re: New Paypal account with same Ebay possible? It sounds like you are going way overboard here. Since this is a real account, just add your SSN. If you go over $20,000 AND 200 items, they will report your gross payments to the IRS.
That does NOT mean that you owe the taxes on $20,000. You only owe taxes on your PROFITS. So, if you profit margin is 10%, then you would owe taxes on $2,000 - which is probably $300 or so - I'm GUESSING - based on my estimate of your tax bracket.
The fact is, you owe taxes on your profits whether or not PayPal reports to eBay. To not pay those taxes is tax evasion, which we do not do here on the forums.
Why am I saying all this? Because simply adding a new PayPal account to the same eBay account will likely get BOTH accounts suspended. It will look like you are trying to commit tax fraud and eBay/PayPal will shut you down in a HEARTBEAT!
Seriously, taxes are not as scary as people think. Everyone I have spoken to says the same thing - they thought they would have to pay WAY MORE than they actually ended up paying. One woman even used the earned income credit to get a refund! This is because there are tax deductions that EVERONE gets and also deductions that you MAY qualify for based on your individual circumstances.
The last thing you want, especially at a young age (my assumption, forgive me if it is wrong) is a problem with the IRS. The IRS has been demonized somewhat - they are NOT as evil as people say. But if they think you are committing tax fraud, THEN they turn evil. And trust me, you don't want that. Saving that $300 could land you in jail for 6 months or more. I'm sure if you were in jail, you would WISH that you could pay $300 to get out! |