Reseller Tax Estimator
Estimate your self-employment tax liability from reselling income. Calculate how much to set aside per sale and plan your quarterly estimated payments.
Understanding Reseller Taxes
As a reseller, you are considered self-employed by the IRS. This means you are responsible for tracking your income, claiming deductions, and making tax payments.
Self-Employment Tax (15.3%)
Covers Social Security and Medicare. You pay both halves but can deduct half on your return.
Federal Income Tax
Net profit is taxed at your marginal rate. 2024 brackets range from 10% to 37%.
Quarterly Estimated Payments
If you owe $1,000+ in taxes, make quarterly payments to avoid penalties.
Record Keeping Tips
- Keep receipts for all inventory purchases
- Track mileage for sourcing trips
- Save receipts for shipping supplies
- Document platform fees from statements
- Use accounting software throughout the year
Frequently Asked Questions
Do I have to pay taxes on reselling income?
Yes. If your net self-employment income exceeds $400 per year, you must file a tax return and pay self-employment tax. This applies regardless of whether you receive a 1099 form. All income from eBay, Etsy, Poshmark, and other platforms is taxable.
What is self-employment tax?
Self-employment tax is 15.3% of your net profit (12.4% for Social Security + 2.9% for Medicare). This is in addition to your regular federal income tax. As an employee, your employer pays half; as self-employed, you pay both halves.
Do I need to make quarterly tax payments?
Generally, if you expect to owe $1,000 or more in taxes for the year, you should make quarterly estimated payments to avoid underpayment penalties. Due dates are April 15, June 15, September 15, and January 15.
What expenses can I deduct as a reseller?
Common deductions include: cost of goods sold (what you paid for items), shipping costs, packaging supplies, platform fees, mileage for sourcing (67 cents/mile in 2024), home office expenses, phone/internet (business portion), and business-related software subscriptions.
Will I get a 1099 from selling platforms?
Starting in 2024, platforms must send 1099-K forms if your sales exceed $5,000. However, you must report all income regardless of whether you receive a 1099. Keep your own records of all sales and expenses.
Important: This calculator provides estimates for educational purposes only. It is not tax advice. Tax laws are complex and vary by situation. Consult a licensed CPA or tax professional for personalized advice. For official tax information, visit IRS.gov.