Hello Everyone, I need a kind of help here.

[BonDragon]

I am a new seller in online business and its been 6 month and PayPal is asking for Tax ID Number. So, I don't know how much tax I have to Pay? Like how much percentage% I have to Pay of my Sell Revenue?

[sharpiemarker · Accepted solution]

@BonDragon 

PayPal ask for tax ID to report your transactions to the IRS and sends you the 1099-K form early next year to do your taxes for 2021 of total goods and services payments received, if you meet the reporting thresholds. You may be allowed to deduct any applicable refunds, expenses, fees, self employment taxes, etc from the total and that will be your taxable income from PayPal and same for any other third party payment processors you use besides PayPal.

PayPal does not charge or do taxes for you so, no one knows how much taxes you will pay exactly.

Please consult tax advisor to figure this out.