Friday, February 5, 2010

Tax question

Here's a question for all the people in the US that sell stuff on Etsy: do I have to worry about the income I make from etsy on my taxes? My dad usually helps me with all my tax questions and has said in the past that I don't have to worry about my profit from Etsy, but I was on Etsy today reading this article and it says I have to file a form for my profits on etsy. I know I've made barely over $100 with both of my stores combined, and I sure don't do it full time, so it's not like I'm really investing a lot in it (I know, I should be doing more).

Any comments would (hopefully) be helpful.

5 comments:

Anonymous said...

Sorry can't help you with that one as I'm in the UK. $100 dollars doesn't seem a big enough amount to have to pay taxes on though, does it?

Shirl x

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Laurie said...

I think that whether or not you have to file taxes for Etsy sales is if your income is more than $500 in any year. Also, you should be collecting sales tax for sales in your own home state. But don't quote me -- I'm a novice at this, too!

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Tracy said...

You don't have to pay income tax if you make under $600 a year on your art/crafts. If you sell wholesale you pay nothing in taxes and it is also considered a "hobby", in other words, you put as much money or more into creating your craft than you make.
Hope this helps. Have fun with your taxes! LOL
Tracy

Christine said...

Great question... unfortunately I don't have the answer but would love to learn more about this as I'm also an new-ish Etsy seller.