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    qrb2000's Avatar
    qrb2000 Posts: 2, Reputation: 1
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    #1

    Feb 20, 2011, 06:54 PM
    How to sell merchandise without paying federal income tax?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Feb 20, 2011, 07:29 PM

    Sorry, no such option.
    It will be yourself employed business. You must file your tax return if yourself employed income is $400 or more. You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 13.3% (this is shown on line 57 of Form 1040). For this you will use schedule SE (Form 1040). Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Feb 20, 2011, 07:33 PM

    Well if they sell it for less than they pay for it, ( operate at a loss) they would not really owe any income tax, since of course they would not have any income, but a loss.

    But I assume you are wanting to actually earn money.

    But selling things for profit is no different than being self employed in many positions, or even earning a pay check. You owe a percentage of your money to taxes.
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