Friday, February 05, 2010

Double post

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.


Carrie M said...

Yup, you're supposed to report the income. Fortunately you can deduct your expenses like materials, postage, even portions of the utilities you use to make what you sell (like electricity or internet costs for example). On the downside this requires you to keep your receipts for proof in case you get audited. And they take about 15% of your reported profits, so it's important to find deductions.

With your situation though, it's kind of up to you. It's such a small amount that even if the IRS noticed it (and that's a big if) they probably wouldn't pursue it. I wouldn't worry about it.

craftytokyomama said...

I was reading on that you need to have a net income of 400 dollars before you need to file. You might double check!