How much $$$ before you need to report?

[KBinSATX]

I just opened my Etsy store and I am so excited. I already sold something!
All my items are small/ under $15 and I don't expect to sell more than a few each month.
Really just enough spending money to splurge on new shoes for my baby, etc.
So what's the amount one can earn by selling stuff before it has to be included in family income (on taxes, etc.)?

[mamacatsbaby]

I've been wondering this as well : .

[MyTwoAs]

If you earn $400 or more net in a year then you need to file for taxes.
http://www.irs.gov/businesses/small/...115043,00.html

http://www.irs.gov/businesses/small/...115045,00.html

My freelancing business has gotten busier than I expected so I've been researchin this topic the past few days and sof ar I've found the best information at the IRS website.

[KBinSATX]

Wow, so $400 net per year means as little as about $33 of profit per month is reportable?

[Mama Dragon]

It's rather crappy how greedy our government is with hardworking law income self employed people. You don't have to pay taxes on that $400. Make over that and you need to set aside and send the IRS 15.3% of your net income for self employment taxes.

[brightonwoman]

dang, I guess I will need to keep buying supplies so that my net stays under $400.


Honestly I've never even come close in the past--but this year things have taken off for my etsy shop so THANK YOU for the info, and I'll make sure I've got records of everything!


Here's a question: Do I need to keep all my receipts (supplies, etc) or is it ok if I just have a ledger book showing amounts in and out... I get most of my supplies online so it's through paypal and there's a record there. Also I know I havent' kept receipts for some things : I've got a ledger book but that's all right now...

[Koloe]

Originally Posted by brightonwoman

Here's a question: Do I need to keep all my receipts (supplies, etc) or is it ok if I just have a ledger book showing amounts in and out... I get most of my supplies online so it's through paypal and there's a record there. Also I know I havent' kept receipts for some things : I've got a ledger book but that's all right now...

If the IRS comes calling - you better have proof to back up your claims.