If your eBay sales exceed $600 in 2026, eBay will issue a 1099-K to the IRS. Calculate your actual taxable income.
Deductible expenses: eBay fees, shipping costs, item purchase costs, packaging, home office, mileage, supplies.
Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on net profit.
Yes, if your total sales exceed $600 in 2026. eBay reports this to the IRS via 1099-K. You owe tax on net profit (sales minus expenses).