This article explains whether or not a person who sells on Ebay needs to report their
earnings to the IRS. First it goes
into myths that people think are true on the internet (such as money limits.) then it goes on to tell the truth: If you use the site as your version of an online garage sale you do not have to report it UNLESS you are selling appreciating items (items that go up in value over time).If you are using it as a
business (like buying many items for cheap just for the sake of reselling them) you MUST report your
earnings to the IRS. However you''re also eligible to get deductions. If you were using it to sell off items of a dead business you also have to report earnings. The article has direct links to tax forms and info. If you do end up reporting your earnings you would be using the form 1040.