I have an opportunity to work with a company shipping product. Basically, I would be the person responsible for going out and purchasing customer orders and then packaging and shipping them. The company will transmit the money for the items via direct deposit. I was wondering if, in this case, I would be responsible for paying taxes on the money that flows through my bank account. Does anyone know? I’m in Idaho if that changes anything.
Update:
While we’re on the talk of scams…I am kind of iffy. The opportunity seems like it could be legit. Basically, the guy runs an eBay shop and he needs someone to purchase and ship laptops. My job would be to go to Best Buy, purchase the items with funds he deposits via direct deposit, then package and ship them to the customers. My scam alert did indeed go off, but if he’s depositing the money and I’m physically using the money to purchase the products…I just am trying to find where the scam occurs….
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Two Issues:
1) Yes, any income made this way would be taxable.
However……
2) The “opportunity” may actually be a scam. Scammers try and recruit people to ship packages all of the time. Thye purchase items with stolen credit card numbers and have them shipped to your house. You are to forward them on somewhere else. Eventually, when the scam unravels, the authorities only have one address to go to: Yours.
Also…….some scammers have disguised the typical fake check scam as “purchasing agent”. They sent you a check that looks real. You are supposed to cash it and send most of the money via Western Union to a “supplier”. Then 10-14 days later, the check bounces. This leaves you on the hook for the bad check and possibly even facing criminal fraud charges yourself.
Chances are, if you found this “opportunity” online, it is a scam. Be careful.
Edit: Direct deposits of money can be reversed within 60 days. In that way, they are actually more risky than checks. My gut says that this is a scam.
I would run away from this as fast as I could. If you found this opportunity online, I’d argue it’s a scam.
For expensive items, buyers generally remember to do their research and they aren’t going to overpay for something they themselves can buy at Best Buy.
Unless the orders are being shipped to a foreign address, he doesn’t need you. He can just enter the order at the Best Buy site, give the shipping destination and he’s done. If the order *is* being shipped to a foreign address, he could still order the item online, pay for it, designate you as the person picking up the order, then have you ship the item being liable for ONLY the postage. (Not an insignificant amount, but much less than the product and the shipping.)
But, no this guy claims he’s going to list the same items Best Buy has on eBay, pay 9% to eBay for the winning bid, pay 3% to Paypal to process the money, pay you to ship it, that he can clear a profit and does this so many times a week that he needs help. Riiight.
As for something going wrong. Your name is going to be the one on the package. Your name is going to be the one supposedly receving the money. Let’s say he gets arrested for using stolen credit cards and the money trail leads directly to you. The police knock on your door and say they’ll not press charges for money laundering if you reimburse 1% of the money. If each laptop costs $5, it only takes a few to leave you in serious hurt.
Alternately, he’ll say something is wrong with the direct deposit (which can be reversed, by the way) and he’ll be sending you a cashier’s check, but the laptops have to go out immediately. He would be counting on you not knowing that your bank is merely giving you a courtesy credit until the check actually clears. When it bounces, they too will want 1% of their money back.
Yes anything you make would be taxable. But the bigger issue is the issue of scams. Just because he has made a deposit in your bank and they’ve let you take the money out does not mean it won’t bounce or turn out to be fraudulent later, leaving you holding the bag when your bank wants their money back – from you. Odds are VERY high this is a scam. Think about it – why does he need you when he could just order the PC directly online to be shipped to the customer – the vendor would take care of the packaging and shipping.
Where’s the scam? When his deposits bounce, and they will. You will have shipped out the laptops, and YOU will have to repay your bank for the bounced deposit.
Scam on this one as you are being used as a “mule” to physically handle items probably being purchased with stolen cards and ID; using you cuts the prime suspect out of the picture and you take the fall when caught. If it was legit you would owe taxes on any profits made.
wow! this is really scary—
why would anyone buy thru this guy when they can just go to Best Buy themselves and get any lap top they want
and you are going to pay full price for this and ship it to the customer?—–walk away, and don’t look back
You pay taxes on your income. You will need to keep very detailed records to show in and out flow to show what is actually income.
Why would he need you to do this? This is some sort of scam.