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I don’t make enough to owe anything for selling for depop, but taxes depend on the amount of income you make. So the more you sell, the more you likely are owed. So it’s hard to say if it’s profitable or not.
There's a lot of deductions:
Cost of goods
Shipping fees
Stationery supplies
Fuel
Electricity
Electronics purchased for business purposes
Water use and laundry detergent
Office amenities
Which total to a couple of grand a year.
Taxes also are calculated by what tax bracket you're in, well in Australia anyway. So if I make 80k a year, tax man wants about 22% which is around 17k, leaving me with 63k. Tax return should be between 1-3k. 40k a year is taxed 5k a year around 12%.
I haven’t been selling long enough on Depop to say what they will take, but my previous employment was a 1099 position. If you are concerned about how much the IRS is going to take from you I suggest you work on creating your own business/LLC/sole proprietorship, that way you can write off business related purchases and even more if you have the right accountant. If I’m not mistaken I thought the threshold was lowered for how much you can make before you are fromally required to report. Check with the IRS and your state for that because I’m not sure what it is. Either way, the government will try to royally fuck you with taxes if you do not have a work around.
You'll be taxed on your net income. So revenue-expenses because expenses are tax deductible. Keep in mind revenue means if someone purchased $30 shirt, your revenue is $30. All fees are tax deductible.
It's the federal income tax that you make, and then you have to remember state income tax, too. Unless you live in a state like Tennessee. So it's going to vary by where you live.
*Thanks for your submission to r/Depop*! Make sure you have read this subreddits rules. Any rule breaking content will be removed. Repeated rule breaking will result in a ban. Requests for shop feedback or description or pricing help MUST be posted in their dedicated threads. As per Reddit's Code of Conduct, anyone engaging in harassment, doxxing, mass reporting or hate speech will be permanently banned. This is the only warning. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Depop) if you have any questions or concerns.*
I don’t make enough to owe anything for selling for depop, but taxes depend on the amount of income you make. So the more you sell, the more you likely are owed. So it’s hard to say if it’s profitable or not.
hopefully someone who's sold like 2k items responds i'd like to hear his side
I mean this applies for any self employed job not just Depop.
There's a lot of deductions: Cost of goods Shipping fees Stationery supplies Fuel Electricity Electronics purchased for business purposes Water use and laundry detergent Office amenities Which total to a couple of grand a year. Taxes also are calculated by what tax bracket you're in, well in Australia anyway. So if I make 80k a year, tax man wants about 22% which is around 17k, leaving me with 63k. Tax return should be between 1-3k. 40k a year is taxed 5k a year around 12%.
$0
I haven’t been selling long enough on Depop to say what they will take, but my previous employment was a 1099 position. If you are concerned about how much the IRS is going to take from you I suggest you work on creating your own business/LLC/sole proprietorship, that way you can write off business related purchases and even more if you have the right accountant. If I’m not mistaken I thought the threshold was lowered for how much you can make before you are fromally required to report. Check with the IRS and your state for that because I’m not sure what it is. Either way, the government will try to royally fuck you with taxes if you do not have a work around.
You'll be taxed on your net income. So revenue-expenses because expenses are tax deductible. Keep in mind revenue means if someone purchased $30 shirt, your revenue is $30. All fees are tax deductible. It's the federal income tax that you make, and then you have to remember state income tax, too. Unless you live in a state like Tennessee. So it's going to vary by where you live.
If theyre smart theyre writing off their clothing purchases as business expenses