Taxation on income out of Rsgold

How are all the big sold sellers doing this when receiving payments through PayPal for example

 

paying taxes you mean? most likely pay them as you would for business income

 

If I was a private seller making over $20k/year from online sales, would that have to be reported as income or is it like poker winnings?

 

income, probably designated as "income from another source" and then some sort of miscellaneous category depending on your state/country of residence's tax laws

 

Luckily we dont have such thing in my country... If the government wants a piece of my income, they gotta come and get it !

 

Well if you create an LLC business, etc you can do your taxes through the schedule C, but you're more likely to be audited. The obvious advantage is that your liability is limited in case you're sued, but you'd have to hire an accountant or me.

However, most sellers are young and don't have a lot of assets. In the US, you can just claim it as personal income similar "self employment" like you'd do for any other job.

Also note that Paypal reports payments to the IRS if you've received over $20,000 per calendar year.

 

It depends where are you form, obviously different countries, different laws.

 

They pay fees and taxes on their trades but with the amount of money they make a year, given that there business succeeds, it doesn't even matter at that point.