Many people have turned to online sales as a way to earn extra income or as a way to support their family in this depressed economy.  Unfortunately, the Internal Revenue Service expects you to report your online sales as income on your federal tax return so that you can be taxed on this income.  Even items you make as a hobby then sell them may be taxed.  There are a few exceptions but not very many.  One exception would be if you sold a used, personal item through an online website (just as if you sold it at your garage sale).

For more about reporting online sales read, “Do You Need to Report Your Online Sales to the IRS?”