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Do I need a Tax ID?

I plan to buy things and flip them for a few dollars and sell on craigslist, and maybe at craft booths in the state of Oklahoma. I will be in charge of my own expenses, but more or less, this will be a hobby thing for the weekends, and should not be a huge profit. It would be nice, but I plan to flip these items because I love doing it. : )

Sales tax? Income tax? Sole proprietorship?

Answer Question
 
matobe

Asked by matobe at 8:38 PM on Nov. 11, 2013 in Money & Work

Level 21 (10,174 Credits)
Answers (2)
  • You may be required to have some kind of business license for those craft booths, so make some calls tomorrow. Usually your SSN is sufficient as a tax ID.
    gdiamante

    Answer by gdiamante at 8:41 PM on Nov. 11, 2013

  • If you are making a profit and you are doing it more than once or twice you probably need a business tax ID. Call and ask the IRS which is where you would get one.
    They will ask you questions. Tell them about how much you feel you will make in a quarter. and how regularly you intend to do it.
    If you sell something for and make $10.00 off the item and do it two or three times in a month and do that (or expect to) for the year. You will realize a total of about $120.00 a year. You may not need to file for that amount but will be told to put it on your income taxes and additional income.
    If you are getting any kind of assistance you MUST report it to your case worker ( or you could lose your benefits)
    The good thing about a tax ID is that you do not pay the tax when you purchase the item. You also have to report what was purchased.
    A tax lawyer is a good idea, if only once.
    Dardenella

    Answer by Dardenella at 11:34 PM on Nov. 11, 2013

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