Etsy U.S. Tax, Bookkeeping, and Business License Topics
Taxes .... ?
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Okay, so I started up my Etsy account about 2 weeks ago. I thought you could just sell your hobby creations on here. Now I keep reading about taxes. My mother even asked about my taxes for here. I did NOT know we had to do anything with taxes? I mean, I am not trying to build some huge multi-million dollar business on here. I just want to sell a little of my old crafts and stuff. I made my first sale yesterday. I really don't want to get in trouble over taxes or anything, but I am completely clueless about this?
Can someone offer me some advice or guidance on whatever it is I am supposed to do?
Posted at 8:45 pm Jun 11, 2012 EDT
Rules vary greatly from state to state, but generally, when you sell your items you will be responsible for income taxes on your income and sales tax on your taxable transactions (some states might have additional taxes).
This first post of this thread should help you find out the sales tax requirements for sellers from your state--be sure to check for city and/or county rules for business registration too:
US: Sales Tax & Business Registration--links to official state websites
You need to keep good records for your income taxes--sole proprietors file federally with personal income taxes on the Schedule C, this will help you understand how to keep the records and fill out the Schedule C:
US Sellers: Help for Filing Income Taxes for Your Small Business
It might seem overwhelming at first, but you'll get it all figured out.
Posted at 2:32 am Jun 12, 2012 EDT