Originally Posted by
jatink129
... i did not know that money earned on eBay was taxable...And I did not know that money gotten from a relative or from reselling small amounts of electronics could be taxable. Yes, I earned about $5000 doing this, but a huge chunk of that was my money to begin with
In the context of a business "income" is not the same as "revenue". If you paid $4,000 for goods and sold them for $5,000 your "income" from the business will be only $1,000, but you need to document the revenue and expenses on your tax return. In any event, there are better places to learn about the US tax code, and your state tax code, than Flyertalk.
Has American Express frozen your account, or only asked you to complete a form 4506-T?