<prompt> Human: Hello all! First time posting on this subreddit, but Ive been reading a bit here and there ever since Ive had my problem.So here is a little bit of background information: I am a recent college graduate going into post-graduate studies. During my undergraduate career FY 2014, I started and maintained an eBay where I would buy and sell Pokemon Cards as well as clothing. Being completely ignorant to tax laws and I mean completely - Never took a personal finance class or anything, I didnt file my taxes for 2014 even after receiving a 1099 from paypal! Anyways, fast-forward 1.5 years until today... I received a nice little letter in the mail from the FTB Franchise Tax Board of CA stating I owed 1,200 or so in state taxes for 2014. Having filed my 2015 taxes, I was a little shocked but wasnt really too worried because I had a better grasp on how taxes worked. I just thought, Alright! If this is what I owe, then I will not contest and just put this all behind me!!!So, initially I just planned to pay what they were asking and planned to get on with my life. Luckily, I was able to talk to a tax professional on the TurboTax hotline who actually walked me through the whole situation...He was very surprised I hadnt received a similar letter from the IRS and said that NO, do not pay everything, COMPLETE YOUR TAXES and file a SCHEDULE C and show deductions. I had no idea that I was supposed to pay additional tax to the IRS on top of the FTB tax Federal and State taxes, very clear now, but I had thought the FTB bill was for my IRS taxes.This is when I got a little scared. I went through all of my taxes for 2014 and turbotax said I would have owed the federal government around 10,000 dollars before any deductions... This of course, would not include any penalties or late fees.However, after going through ALL of my receipts and CC statements I got down my tax debt to around 2,000 for both state and federal before any late fees and penalties. Two things Im extremely thankful for...1 That my girlfriend at the time insisted I keep all of my receipts and that I kept them all in a file.2 That I called turbotax and they convinced me to go through their service to fill out a 1040 to submit to both the FTB AND the IRS.Since then: I have mailed the IRS as well as the FTB my proper 2014 returns and am waiting for a bill in the mail! I am happy to pay what taxes I owe, but this COULD HAVE BEEN an EXTREMELY costly lesson it will still probably be since I will have to pay late fees and possibly penalties.So for all of you eBay etsy Amazon sellers... Even if youre ignorant like I was, report your taxes. If you dont know how, or dont know where to start, look up CPAs in your area. One may happily talk to you on the phone for 5-10 minutes about what you should do, and may even help you file for 40-100 bucks. Or just do turbotax cost me 100. For one, you shouldnt not have to pay taxes while people working full time jobs do. And secondly, its not worth the headache and stress of getting mail from your states FTB or from the IRS.Anyways, its nice reading the advice from everyone on this board, hope someone can take something away from this post. I will update in the upcoming months with what the FTB and the IRS has to say! --Edit 1--Just to make it super clear, as some have posted it here: you owe taxes if you profit from any eBay sales if you were selling with the intent to profit and if you have made over 400 or so dollars TOTAL for the year. Just because you dont receive a 1099 does not mean you dont owe taxes.  <response>: eBay will file the 1099K for 200 transactions and 20000 in a single year. If you are selling some old used items here and there, you wont be hearing from the tax authorities. 