Q:  What is the difference between investing in stocks and investing in mutual funds?

A:  When you invest in stock, you only have ownership in one company.  A mutual fund is a collective of various stocks that allows you to have ownership in several companies.  Because mutual funds are diverse, they are generally less risky than owning individual stocks.  For first-time or novice investors, mutual funds can be a safer alternative to stocks.

Q:  I sometimes sell items on eBay for extra money.  Do I have to pay taxes on this money?

A:  The answer is…it depends.  If you sell items for more than their original retail value (for example, vintage toys), you’re supposed to declare that income.  If you’re merely selling clothing or household items for less than what you paid for them, you’re in the clear.   While a lot of people don’t declare or underreport this type of income, it’s better to be safe than sorry.  If the IRS comes calling, more than just your current year’s income tax return will fall under scrutiny.