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If you sell things that you make...

...how do you do your taxes? Is working that way worth the trouble (with taxes)?

I'm pretty tax-illiterate, so any and all information you can give would be much appreciated.
I'm thinking about selling things that I make (textiles and such), but I don't know what all that is going to entail...

Thanks in advance :)

Answer Question
 
Anonymous

Asked by Anonymous at 5:01 PM on Mar. 6, 2009 in Money & Work

Answers (5)
  • I can guarantee probably 90% of people who make things and sell them don't claim anything and do it under the table. If everyone who made something to sell had to pay taxes, no one would be making things to sell, cause it ain't worth it!
    Anonymous

    Answer by Anonymous at 5:16 PM on Mar. 6, 2009

  • Thanks anon, but I guess I'm talking about something a little more "official," like Etsy. Do people who sell their things on Etsy or ebay have to pay taxes? Does it depend on how much they make? Argh, I'm so bewildered about this stuff, lol.
    Anonymous

    Answer by Anonymous at 5:22 PM on Mar. 6, 2009

  • No. I have an Etsy and Ebay account. The law currently states you can't charge taxes for online transactions like Ebay and Etsy. There are people currently trying to change this law, but being that the internet is "WWW" world wide, it will be hard to determine how to charge taxes especially overseas transactions.
    goinginsane1

    Answer by goinginsane1 at 5:34 PM on Mar. 6, 2009

  • No, goinginsane, I'm not talking about charging taxes, I'm talking about reporting MY [hypothetical] income (from ebay or Etsy, or similar site) and paying taxes to the IRS.

    Anonymous

    Answer by Anonymous at 8:44 PM on Mar. 6, 2009

  • Oh, sorry. I guess I misunderstood. From what I understand, anything you make under $2000 annually does not have to be reported. I am not positive on that though.
    goinginsane1

    Answer by goinginsane1 at 12:28 PM on Mar. 9, 2009

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