Search results (tags) for: "tax time"

Hey Procrastinators, Get Inspired by the Winner of our Tax-Time Vote

2009-04-13T13:15:00-05:00

diffractionfiber's Alt - Ctrl - Del Three Pillow Set is the winner of our tax-time inspired poll! These ingenious throw pillows set a playful tone for all the banging-head-to-desk we are all doing right now. Thank you, diffractionfiber, for inspiring us and for giving us a chuckle. Thank you to all who voted too. You can see how the votes played out here and look below for the top 21 runners up. You can also fine some of these items in the Gift Guides. Procrastinators, take heart — you have one more day to stuff those tax returns into the mailbox!

I also wanted to mention how moving it was to read all the comments on the post where we called for your votes. Despite so many Etsians' job losses, you are keeping a positive attitude and continuing to support each other in this economy. Share your stories here.

This week's round of voting focuses on eco-friendly items. We had a huge response from the community in terms of suggested items, and we're sad we couldn't include every one. Now it's time for you to VOTE and to get the word out about your favorites!

Want to get involved in next week's round? Post links to your suggestions for Mother's Day jewelry gifts in the comments below. Look for these voting posts every Monday here on Etsy's blog, The Storque.

More Voting Posts | Jewelry for Mothers | Environmentally Friendly

VOTE! Get Your Career in Gear

2009-04-06T13:16:00-05:00

It's tax time and you could cut the tension with a knife. On top of that, many people are losing their jobs. The hope in all of the economic turmoil may be that some of the creative types are turning their layoffs into opportunities to start their own small businesses and pursue their dreams. ("I didn't get laid off — I quit!") But with this economy, it's nothing short of the challenge of a lifetime.

This week's round of voting goes out to you, friends: not only those of you who have lost your jobs and need to get your home offices/studios organized, but also you workin' stiffs who secretly daydream about getting laid off. Keep your chin up!

VOTE and let us know which of these 60 items would get you motivated!

And let us know how your office is doing in the comments below.

Want to get involved in our next round? Suggest your favorite eco-friendly items! You can post links to your suggestions in the comments below.

More Voting Posts | Office Items | Geek Chic

Tax Time for Artists: Give Good Deeds Their Due

2009-04-03T16:00:00-05:00

Chuck from DownToTheWireDesigns checked in with us after his New Year's Resolution to donate a piece of his jewelry every week for the entire year. Committing to a project like that is quite an undertaking for any artist, and Chuck wants to share an important message about a new piece of legislation that would improve the way artists are compensated for their charitable donations. 'Tis tax season after all...

There is currently a proposed change to the tax code pending in the U.S. House of Representatives that could have a profound effect on all U.S. artists if passed. The proposal, H.R. 1126, also known as the Artist-Museum Partnership Act of 2009, seeks to address the issue of artists donating their work to charitable groups and institutions. As the law currently stands, any person in the arts donating their art work is only allowed to deduct the cost of the materials involved in producing the art work. This resolution seeks to change that situation and would allow for a fair market value deduction.

You can follow the progress of the resolution at this site, and you can locate and email your representative through this site.

I would encourage everyone to contact their elected representatives in support of this resolution so that it does not languish without getting a floor vote. Getting this passed is a basic issue of fairness. The tax code as it is now written discourages charitable giving in these hard times and it undervalues the work of artists.

To illustrate the absurdity of the current law, consider the following: If I donate a piece that I could normally sell for $100 but that only costs me $10 in materials, I can only deduct that $10 on my tax return. My time, design abilities, and technical skills are not valued at all in the tax code as it now exists. However, if someone else buys that same piece of work for the $100 that I normally charge, they could then donate it to charity and deduct the full $100 market value irrespective of the cost of the materials used in its creation. This is simply not fair, and it hurts both the artists and the groups which rely on those artists in their fundraising efforts.

Again, if you feel that the current law is unfair, please take a moment to send a quick email to your elected representatives encouraging them to support the resolution. All you need to do is write them a single line saying, “I am writing to encourage you to support H.R. 1126, the Artist-Museum Partnership Act of 2009.” If you feel inspired you can elaborate by telling your elected official how the current law affects you, and how the change would be an improvement. Try to keep it short and be respectful.

Seller Handbook | Tax Season-related Posts

Tax Time Considerations for the Independent

2008-01-29T18:43:00-05:00

It's tax time again — you know, that time of year when indie artists and crafters to weep and tear our hair out. But fear not! SarahSays, who is not an accountant but understands tax law a bit better than many of us, shares some tips below for US-based artists and makers of all things handmade.

While looking through the shops on Etsy, I often muse about the fuzzy boundary between professional and amateur, hobbyist and businessperson. Well, turns out that there are real tax ramifications for this. Read on...

Debits, credits, deductions, it’s enough to make your head spin! It seems that only a genius, the IRS, or a certified public accountant (CPA), can understand the federal tax and state tax muck-a-muck. Although many Etsians may choose to hire qualified tax professionals, some Etsians of seemingly average intellect manage all things taxable in a DIY fashion. Whether you go it alone, or whether you’d prefer to leave your tax matters to an expert, here are some tax time considerations regarding your Etsy business.

Keep accurate records. Save and organize documents, checks, and spreadsheets related to your business and any additional income (such as your Etsy income). Also, if you use an item, for example your cell phone or your computer for both personal and for business uses, then you should document the dates, times and reasons you use the items for your business. Although tedious, this can help you with deductions that reduce your taxable income and save you money. To qualify for a deduction, the expense must be ordinary and necessary (it must help your business in some minor way); related to your business (you must use the item for your business); and the deduction must be reasonable. But be careful, if the amount of deductions is large relative to your income, you may be audited. Common deductions for artists include advertising costs, attorney and accounting fees, banks fees, commissions and fees paid, insurance costs, license fees, office utilities, postage and subscriptions for professional or business publications.
Beware of the "hobby loss rule." The IRS wants to prevent taxpayers from taking advantage of the fact that business deductions reduce taxable income. For example, a teacher has been making jewelry for years and years and has never earned a profit from it. In this case, the IRS would decide that her jewelry making is a hobby, not a business. This year, the teacher spent $1,000 on jewelry supplies but only earned $100 total. She wanted to deduct the travel expenses from summer craft fairs and other receipts and expenses from her taxes. But these expenses would only be deducted from the $100 income. She can't deduct expenses from her teaching salary. The IRS recognizes the goal of her business is to make a profit, but she can only claim a loss for a few years at the most. The goal of a hobby is for personal satisfaction. If the IRS views what you do as a hobby, there will be severe limits on what expenses you can deduct. In general, if you earn a profit in any three of five consecutive years, the IRS will presume that your business is for profit. According to the IRS, a profit is when the gross income from an activity is higher than the deductions for it. Don't try year after year to claim expenses if you're not making a profit; you may want to recognize that you're a hobbyist (there's no shame in that!).
What to leave home (or recycle). Although, you can be audited for six years if you fail to report more than 25% of your gross income and can be audited without time limits if you file a fraudulent return, these are exceptions to the rule. In general, the IRS is prohibited from asking you about returns that are more than three years old.
It’s your tail on the line. The ultimate legal responsibility for your taxes lays with you, even if an accountant files your taxes. So, remember to be truthful and act in good faith!

Take your time, keep organized, and if you have any questions, speak to an expert. To find someone you trust, ask around. Ask a friend, co-worker, or other small business owner for a recommendation.

Please share any tax stories or tips in the comments below! Which are you — hobbyist or businessperson?