Doing Your TAXES For Poshmark & Other Online Resell Apps

TAX SEASON IS COMING UP!!! I know what you’re thinking, what do I do if I made money one Poshmark? Do I need to file taxes? How do I do it? WHAT DO I DO?!?!?! Short of having a panic attack, we are here to help and guide you to some basic answers to get you on your way to staying in the clear when it comes down to tax time! Just as a note, this blog post is just BASIC info. This isn’t going to go into too much depth, because everyone’s situation is different, and unique. But if you’re looking to get more specific questions answered, there will be info at the end of this post!

This has been one of the most asked questions and requested blog posts as of late. So I was able to compile a small questionnaire featuring Kreithchele Barnard (@krangele on Poshmark) who was a workshop speaker at this past 2016 Poshfest, she is also a CPA (inactive) with an MBA and elective studies in Taxes and Business Strategy. Currently she is teaching accounting at Santa Ana College in Santa Ana, CA and is working on her online course Accounting For Your Fashion Resale / Boutique. Her workshop was the most sought after at Poshfest but unfortunately was cut rather short due to delays. So thankfully, I have her here with me answering a few basic questions that I have accumulated from other users to help you decide what to do come tax season.

Poshmark Taxes.jpg
Tax season is up ahead, and you need to know how to file if you are making money on Poshmark.
HGF – The BIG question everyone is asking around this time is: Should I be filing taxes to include my Poshmark sales?
KB – Yes.  Anytime you have income from any source you should include in your income. However, if you have a loss be careful.  The IRS doesn’t like to see losses on a schedule C to offset income.
Basic Definitions:
Formula –>  Sales – Expenses = Income / Loss
  • Sales (what you sell items for)
  • Expenses (what you spend for your items and everything for your business)
  • Income is when you sell more than you spend
  • Loss is when you sell less than you spend
  • For Example: Sales $5000 – Expenses $6000 = loss $1000

HGF – Without going too much into detail, what are some basic things people should be tracking if they do plan on writing things off?
KB – Pretty much everything – anything you buy that goes into your business.  Office / shipping supplies, cell phone bill, gas, etc.  If you go to an event that is Poshmark related such as a Meetup, or Poshfest – registration fees, hotel, travel, etc.
HGF – How important is keeping track of your sales, profit, and investments for newbies?
KB – Depends on where you’re at -if you’re doing it as a hobby, for fun or don’t care what you make, then it’s not important.  But if your activities are headed towards business, then it’s important so that you know what to report for income taxes and sales taxes.  If you’re selling stuff from your own closet and basically selling it at less than you bought it for then it’s really a hobby. But if you start buying stuff with the intention of selling it for profit, then you’re going into business mode.  This includes thrifting.  If you go to Goodwill and buy something with the intent to resell then you’re really into business mode.
What forms do you need if you are filing your Poshmark income for your taxes?
HGF – At what point should someone get a business license?
KB – If you are conducting ANY type of business you need a business license.  So get one when it’s no longer a hobby and when you’re buying stuff to resell/flip.
HGF – How would someone file their taxes if they are going to claim their earnings from Poshmark?

KB- Depends on the type of entity your activities or business is – if it’s a sole proprietorship, LLC, or S-Corp.

  • Sole Proprietorship – schedule C on personal tax return
  • LLC – depends on how many members – single member LLC? Then it’d be on your personal tax return
  • S-Corp – income flows through to personal tax return
HGF- Items above aren’t covered here in detail at but if you’d like to know more, then you can pre-purchase Kreithchele’s Accounting For Your Fashion Resale / Boutique Online Course.
HGF – Where can I go to take your Online Course?

KB – The course will be available in May and already has an active private Facebook Group.

HGF – For those who have purchased the course, they can ask questions, have discussions, etc. She also does a Facebook livestream for any questions that anyone in the group has.  The course is $147 + $25 for Facebook Group access, but currently taking pre-orders for $62 (Course & FB Group) with full access to the Facebook group and discussions NOW. The pre-order price of $62 will be available until March 2017 so book now!

  1. To secure the $62 price, make a payment of $62 to and put HealthyGirlFashion + Your email in the notes
  2. Once Kreithchele receives the PayPal confirmation, she will:
    1.  Add you to the Facebook group (if you’re already Facebook friends with her)
    2. Invite you to the group (if you’re not Facebook friends with her)
  3. When the course is ready, you will receive a code to grant you access to the course at no additional charge (since you  are pre-paying now).

HGF – There you have it ladies! Sign up as soon as you can to get that course, because we all know you’re thrifting and selling, and making some big cash! Don’t neglect your taxes! I personally have already signed up for the course and am ready to go, so I hope you sign up too! I mean, where can you get someone readily available to answer your accounting/tax/business questions, get a quick answer right away, with a set course, Facebook group & discussions + is a Posher herself?!

I personally would like to thank Kreithchele for answering a few questions for us here are HGF. If you have some burning questions, put them down below in the comments I’ll get them answered as quick as I can!

Also- please put down your closet name below! We love checking out your closets!

Stay Healthy,


Ediza Ferris

Ediza has been a Poshmark user since 2013 and is a fashion enthusiast with a insatiable hunger for designer bags. She has completed numerous trips around the world using points and miles as her choice of currency and chronicles those adventures here at HealthyGirlFashion.

  1. Thank you both so much for sharing this with us! I, for one, am a little clueless when it comes to this side of the business and found this very helpful. There you go again Ediza bringing us another awesome & relevant post! 💕

  2. Thank you for another great informational post Ediza. My closet is @flippinfabulous. I have a question. Occasionally I will see someone offering FREE shipping in their closet. Just wondering how can you do that if the shipping automatically comes up when you sell something?

    1. When a buyer asks you for free shipping, then they’re asking you to lower the price of your listing to subtract the cost of shipping. It’s up to you to do that, but I would just have them make an offer of that price. Otherwise they may not buy after you lower.

  3. Thank you SO much for this information!! My closet on Poshmark is @stevensonkatie. I do have a tax question – do you know if Poshmark is collecting and remitting sales taxes?

  4. Ediza- I just stumbled upon your blog a few weeks ago as I am starting to sell on Posh. Congrats on your success and lending a helpful hand in giving other Posh sellers advice. However, I have to wonder if Ms. Barnard is an ex-IRS officer or she just has a knack for smacking fear into people who are trying to earn some income legally and off-line. Folks who are selling on Poshmark (I cannot speak for Boutique sellers) whether it be used clothes from their closet or taking weekly trips to Goodwill to make their $1 turn to $2, the IRS is the last group of people you need to be advertising this to!! Why would someone willingly hand over money to the IRS when they technically do not have to?? This is just one more way for them to reach their hands into your hard earned money. It’s used clothing for Christ sake! Unless you are making some spectacular 6-figure income from doing this, the IRS will never know about your income from doing this. Do you get what I am saying? It baffles me that small-business people are not more savvy and anti-IRS/establishment. Please do not be fooled into thinking you owe these crooks (IRS) a dime from your Posh sales! Sorry if I sound harsh, but I am a protector of the little guy and small business owners. I work with them on a day to day basis and when they don’t have to pay the IRS, my God they are not going to pay the IRS.
    A Libertarian Posher

  5. Hello!! Long time reader, first time commenter….😊
    My question is, if I buy something wholesale (from an outside wholesaler where I do not pay tax) and then resell it on poshmark, how do we collect taxes from that to report? Or does poshmark collect taxes and the seller does not need to worry? If you know of any articles to read that would be great!! Thank you!
    You can check out my closet at @ashleyvarga 😘

    1. Ashley-

      Thanks so much for reading! The taxes you would claim would be on the profit of the items you sell. So you bought 100 shirts at $5 each = $500. Then you sold them all for $20 each making a total gross at $2000. You would claim taxes for the $1500 profit unless you would have deductions, and figure that into your net profit and file those earnings.

      1. Hello Ediza,

        On Poshmark, if a shirt cost $5/ea for 100, total $500, shouldn’t we also deduct the profit of 20% fees to Poshmark, instead of gross profit $1500, shouldn’t that be $1200?

  6. You shared excellent information on about calculating the tax returns of a successful business easily by using online system software , I read this post and remember the best points especially ” customer service management ” mentioned in this article which help me for running a business successfully with the help of professional accounting .If you want to start a business successfully then you must read this article carefully and keep it in your mind all the best points of a great article which help you to running a business successfully with the professional accountant .

  7. If I am consulting and getting clothes from people to sell and splitting the profit how does that work with taxes? I am not getting all the profits but splitting with the owner of the clothing. Im just in the beginning phases and haven’t started but want to have all my ducks in a row before I move forward and would like to include the information in my contract.

  8. Wow..Yeah u people really need to be careful bc you are going to end up owing the IRS..I also believe that poshmark down at actually want u to report on the other hand..Something isn’t adding up here..Posh keeps alot of our money when we sell so are they reporting that on their taxes? Absolutely not individually for sure so it just doesn’t make any sense whatsoever

    1. Poshmark does do their own taxes, but they don’t do your taxes for you. It would be too complicated if they did because there are a lot of unanswered questions. If you take the course it’s states in black and white when you should and when you shouldn’t report. I think that everyone should do their own research when it comes to this and figure out what works best for them. Thanks for reading!

  9. Hey! I recently cleaned out my closet and found some stuff that has never been worn and wanted to sell them online. I was wondering, when going into an app like this, do we have to file taxes as a self-employed person, or do I include it with the income I earned from any other job I had throughout the year? I’d be making a small amount of sales on the side while I’m in school. Thanks for the article!

  10. Hello,
    Thanks for sharing this. quick question, if I am selling soley selling from my closet and SOME from buying clearances at nordstrom rack or tj maxx and have less than 300 listings at poshmark, do I still have to file the tax? i’m a little confused because im sure you have a ton of listings and a ton of earnings monthly.

  11. Generally speaking, there are 2 types of posh sellers, the business and the unloader. If you are an unloader, you are losing the shirts off your backs, literally. If you are a business, then treat your posh account as a business, regardless of selling used or new, because the IRS is interested in your income. If you you are generating an income, then yes, include it in your filing. If you are generating a loss, go on right ahead, file that too. The catch is this… if your posh income is below a particular threshold, you can treat it as negligible if you do not have another income. But if you do have other incomes, and added up gross income puts you over that threshold number, you better include it in your filing. For this year, it is $12,000 , single under 65 years of age. Married under 65, $24,000 joint income. Hope this helps. Below those thresholds, you don’t have to file.

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February 2017
Blog Schedule
  • Make Up Monday – Product Reviews, New Trends, Etc.
  • Posh Tip-Tuesday – Quick Weekly Poshmark Tips
  • Weight Loss Wednesday – Workouts, Diets, Healthy Living
  • Travel Thursday – Wanna stowaway in my bags?
  • Fashion Friday – Shopping, Clothes, and Eveything Fashion
  • Saturday/Sunday – Misc. Fun Stuff.