<prompt> Human: Hello! Looking for some advice! Someone told me it would be better to post here and I dont know very much about taxes. So I had my ebay account for a while selling stuff casually. I had a lot of reviews and my sister thought we should try buying and reselling stuff on my ebay account.I didnt think wed make much but we made about 5000 in 3 months, most of it is her profit and her stuff though. I dont know much about taxes but I feel like this will effect my fafsa and how much I get taxed at the end of the year since Im currently at university not making much with my part time job.Does anyone happen to know if ebay will file taxes on this thank you! If so I plan to delete the stuff on my account immediately and have my sister make her own.Assistant: Read it and learn. Basically, it depends if you are buying or making and reselling or if you are selling stuff you have sitting around. Technically eBayPayPal will report a 1099 -k for transactions over 200 and 20K in sales. You get a copy, the IRS gets one. You subtract your costs, fees and expenses, thats your net profit, which gets taxed. The rate it gets taxed with depends on whether its a hobby, a business, or a capital gain. If your sister is responsible for some of it, I believe you have to 1099 her to pass through the income, and she is responsible for her own records. Keep good records and you should be good to go. Human: okay I think altogether invested 1000 and got 4000 profit out of it. And thank you for the link! Ill make sure to read it!  <response>: There is a way for you to split off your profit from your sisters. You can formally create and send her a Form 1099 that passes her earnings on to her using her SSN as a subcontractor, and then on your Schedule C or C-EZ you treat that amount as an expense. Then your profit would be the smaller number, and sister creates her own Schedule C with the larger number and pays her taxes on that. Since each of you has profit over 400, youd each fill out Schedule SE also, to pay social security and Medicare taxes. They would be about 141 for every 1000 of profit. If youre in the 10 tax bracket youd also have about 93 in income tax for every 1000 of profit. Your specific income tax would depend on how much you earned at your part-time work.Form 1040 lines 12, 27, and 57 would be important in your taxes. 