Let's start with reselling, whether it's furniture, old clothes, or concert tickets. What does that mean for your taxes? We asked Phyllis Joe Cuy, an enrolled agent, to find out. You're not going to owe tax unless you have *** profit. So if you're selling for more than you paid, like flipping concert tickets for profit, that's taxable. But if you're selling off your old stuff for less than you originally bought it for, you're fine unless you. It's something super valuable in most cases you're not going to be making money on those transactions. Next, picking up *** side hustle from freelancing to driving for *** rideshare company to pet sitting. The IRS considers you self-employed, which triggers *** lower filing threshold. If you're going to have *** net profit of 400 or more, you have to report because that's the threshold for self-employment taxes. The good news, since you're self-employed, you could qualify for more tax deductions, things like phone costs used specifically for business calls, the cost of gas mileage for business travel, or the cost to maintain *** home office if you use it regularly and exclusively for business purposes. Finally, gambling and sports betting. Yes, your winnings are taxable, but you can actually deduct those gambling losses to the. of the gambling winnings. To do that, you'll have to itemize your deduction, so make sure you keep detailed records. Phyllis says that's important regardless. One of the most common mistakes she sees is people not reporting all of their income correctly. There are things that you're apt to forget, you know, you might have *** small bank account with some interest income, and that's one of the reasons it's important to keep your own records. Still need help? The IRS has detailed information for individual and business fiers at IRS.gov. Reporting in Washington, I'm Amy Lou.
How selling online, side gigs, and gambling affect your taxes
![vlog logo]()
Updated: 1:33 PM CDT Mar 25, 2025
Tax season is here, and understanding how selling items online, side gigs, and gambling winnings affect your taxes is crucial.We asked Phyllis Jo Kubey, an enrolled agent and member of the National Association of Enrolled Agents, what each of these common things can mean for your taxes.ResellingReselling items only becomes taxable if you sell for a profit, like flipping concert tickets or furniture for more than you initially paid. Selling old items for less than you paid typically isn’t taxable. “Unless you've got something super valuable, in most cases, you're not going to be making money on those transactions,” says Phyllis.Side hustlesFor those with side hustles, such as freelancing or rideshare driving, the IRS considers you self-employed, requiring you to report net profits of $400 or more. Self-employment also opens the door to potential deductions, including business-related phone costs, gas mileage, and home office expenses.GamblingWhen it comes to gambling, winnings are taxable, but losses can be deducted up to the amount of your winnings if you itemize deductions. Keeping detailed records of all income and deductions is key, as failing to report everything is a common mistake.For more guidance, visit IRS.gov for detailed resources.
Tax season is here, and understanding how selling items online, side gigs, and gambling winnings affect your taxes is crucial.
We asked Phyllis Jo Kubey, an enrolled agent and member of the , what each of these common things can mean for your taxes.
Reselling
Reselling items only becomes taxable if you sell for a profit, like flipping concert tickets or furniture for more than you initially paid. Selling old items for less than you paid typically isn’t taxable. “Unless you've got something super valuable, in most cases, you're not going to be making money on those transactions,” says Phyllis.
Side hustles
For those with side hustles, such as freelancing or rideshare driving, the IRS considers you self-employed, requiring you to report net profits of $400 or more. Self-employment also opens the door to potential deductions, including business-related phone costs, gas mileage, and home office expenses.
Gambling
When it comes to gambling, winnings are taxable, but losses can be deducted up to the amount of your winnings if you itemize deductions. Keeping detailed records of all income and deductions is key, as failing to report everything is a common mistake.
For more guidance, visit for detailed resources.
