The Etsy Blog

Often Missed Tax Deductions for Small Businesses handmade and vintage goods

As a US-based Etsy seller, you’re probably aware of some of the common tax deductible expenses — things like material costs and various shipping and bank fees associated with doing business online. However, there are additional tax deductions that most Etsy sellers are eligible for that don’t necessarily show up as part of your cash-based income and expenses. Read on to learn more about how, as an Etsy seller, you can maximize your tax deductions this year.

First, some of the common taxable expenses that most Etsy sellers are aware of:

Cost of Goods Sold
This might sound like a big business manufacturing term, but cost of goods sold certainly applies to all Etsy sellers. Anything you are selling on Etsy has product costs, from the fabric and thread used to create clothing, down to every last bead on handmade jewelry. Be sure to include all of those costs for any items you sold last year when it’s time to file your taxes. They are all considered cost of goods sold and should offset your sales of each item.

PayPal and Other Bank Fees
Every time you receive money through PayPal, a small percentage of that transaction is kept by PayPal — this expense is generally known as a bank fee, and it is a tax-deductible expense. If you collect sales through other payment methods, like credit cards, those merchant or bank fees are also deductible.

Listing and Advertising Fees
As a seller on Etsy, you pay a small fee for each listing and sold item, both on a per transaction basis as well as a percentage of the selling price. Those fees are certainly tax deductible, and you might have other advertising fees that you should include as well. Did you pay for Promoted Listings or keywords on Google? Did you have business cards or brochures made? All of those are marketing expenses that should be deducted from your taxable income.

Postage and Shipping
All of your shipping and related fees should be included in your expenses as well. This includes postage and any packaging materials (even the tape on your boxes!). If you drive to the post office to drop off your goods, that mileage can be deducted as well. I’ll explain this below as we venture into some more frequently missed deductions.

Be sure to consider these commonly overlooked tax deductions:

Home Office Deduction
Many of you sell on Etsy out of your home, but very few take a home office deduction.

The rules for qualifying for a home office deduction are pretty straightforward. A good rule of thumb is that as long as you are using a portion of your home exclusively for business (even if it’s just the area around your desk) and you handle administrative tasks from that location, then you qualify for a home office deduction. You should consider either taking a deduction this year or setting up your home office so that you are eligible for a home office deduction next year.

Vehicle Expenses
Remember those costs of goods sold we mentioned earlier? While some of those goods may show up on your doorstep, the odds are that you also venture out beyond your stoop to find arts and craft supplies. The miles you drive to drop off packages at the local post office of shipping center qualify as well. Check with the IRS for the most up-to-date rate you can deduct per mile.

Accounting and Taxes
Whether you used tax software or an accountant, you probably incurred some type of fees to get your taxes filed last year. Those fees were likely incurred last year and are a tax deduction. Similarly, any tax preparation or filing fees you incur this year will be deductible when you do your taxes the following year. If you’ve set up an LLC for your business, those setup fees paid to an attorney or an online legal service are tax deductible as well.

It’s very easy to overlook opportunities for tax deductions, or to shy away from potential deductions for fear of a dreaded IRS audit notification. However, if you keep good records of your business transactions  and follow the IRS guidelines for what is deductible, you’re doing yourself a disservice and taking money out of your own pocket by not maximizing your tax deductions.

Seller Handbook Best-of Archive | More Tax Posts

  • tastesorangey

    tastesorangey says:

    Awesome info! Thanks so much for bringing to light all the deductibles.

    5 years ago

  • Ayca

    Ayca says:

    Great info!Thanks for sharing!

    5 years ago

  • abacusbeadcreations

    abacusbeadcreations says:

    I may be an accountant, but taxes are SO complicated. If in doubt, check with a CPA or other tax certified individual. Getting it right the first time is much easier than fixing it later! Great article, eetzee!

    5 years ago

  • StudioZen

    StudioZen says:

    Good information!

    5 years ago

  • FrucciDesign

    FrucciDesign says:

    Thanks for the remainder...filing taxes are such a pain!!!

    5 years ago

  • HarrietsHaven

    HarrietsHaven says:

    Thanks for posting! I already knew about most of these deductions, but it's important to meet with an accountant to help you find as many deductions as possible. And to keep very good records too.

    5 years ago

  • DapperPaper

    DapperPaper says:

    thanks for the information! We definitely have an accountant but this info helps out. we just signed up for outright!

    5 years ago

  • grandmamarievintage

    grandmamarievintage says:

    So helpful! Thanks for this info! Also, I'm in love with that Victor vintage calculator!

    5 years ago

  • candacejean

    candacejean says:

    Hate tax time. Love outright's integration here! Thanks for the tips, too. PS. Lots of items above are calling my name. “Candace.. buy me…”

    5 years ago

  • boutiqueseragun

    boutiqueseragun says:

    Thank you for this info

    5 years ago

  • BetaBoutique

    BetaBoutique says:

    wow, so great we don't have such a complicated system in Europe :)

    5 years ago

  • paramountvintage

    paramountvintage says:

    extremely helpful. thanks!!!

    5 years ago

  • MinceCo

    MinceCo says:

    eerrghh, yuk, hope you all get through it unscathed.

    5 years ago

  • bethtastic

    bethtastic says:

    "Duh" on the deductable things. :) Things you should also considering deducting: computers, label makers, printers, anything you buy (in the fiscal year) that is used to ship (like organza bags), etc. Also-don't torture yourself over the stuff that you might have "left in stock." You cannot count every last bead, piece of wire, etc., if you know why I mean. Last year I thought to myself, "I have half a jug of resin left,should I only deduct half?" No. Just be as honest as you can. This has always worked for me. I also have someone doing my taxes for me. I give them a basic Excel spreadsheet of total earnings, then deduct the obvious stuff- Etsy fees, Paypal fees, and Shipping. Wow, do those add up over time. This year alone, I paid about $2000 in those alone. Like I said, don't torture yourself or get flummoxed. Even though I have a larger business, and another job, it's pretty straight-forward. Deduct what you can, be as honest as possible, but don't worry about the pennies. Also--If anyone wants a copy of my excel spreadsheet, please feel free to convo me. :)

    5 years ago

  • NoMoreTwistHandmade

    NoMoreTwistHandmade says:

    thanks for this article. i am self-employed for my "day job," so service tax deductions are always on my mind throughout the year. thanks for the heads up on good-related deductions and the reminder that i need to find out more about all this stuff for my growing etsy business.

    5 years ago

  • EvenAndy

    EvenAndy says:

    Thank you so much for this article. I had no idea that I could deduct for having a home office. I will mention this to the accountant preparing my taxes. Thank you again.

    5 years ago

  • TessaKim

    TessaKim says:

    Good to know!

    5 years ago

  • akaCINDERS

    akaCINDERS says:

    Great info. I do taxes for myself and poppyswickedgarden. I think a lot of sellers aren't aware of what they need for sales to claim and deductions. If you haven't kept track of these you should. If you only accept and ship with paypal, most of the information is fairly easy to get. The hardest part is gathering the information. Using a small business software instead of paying an accountant (sorry abacusbeadcreations) is a snap once you've gotten everything together.

    5 years ago

  • kristimcmurry

    kristimcmurry says:

    Just filed yesterday...*sigh* Well at least I'll know for next year! Thanks!

    5 years ago

  • craftscafe

    craftscafe says:

    Thanks for all the tips! I've filed 2009 but definitely collecting info for next year!

    5 years ago

  • NaturalVibesJewelry

    NaturalVibesJewelry says:

    This is really great info. Taxes can get so confusing with small businesses and this helped shed some light on deductions that I missed. Thank you so much etsy!

    5 years ago

  • tamaragarvey

    tamaragarvey says:

    i LOVE outright and its graphs showing you how much you are making/spending each month! so much fun to dig around in. :)

    5 years ago

  • battysbath

    battysbath says:

    Thanks for this! I've already filled but I'm bookmarking this for next year.

    5 years ago

  • OneClayBead

    OneClayBead says:

    I have found it best to consult a professional regarding taxes. One thing that I would never do again is take a home office deduction. When you sell your home, you have to pay capital gains taxes on any appreciation, for that portion of the house. It wound up costing me ten times what I saved by taking the deduction through the years.

    5 years ago

  • voleurdebijoux

    voleurdebijoux says:

    Great info! Here's the link to IRS Small Business and what you can deduct. It is very helpful. :),,id=109807,00.html

    5 years ago

  • YouAreYou

    YouAreYou says:

    Nice! Thanks for the info!

    5 years ago

  • jolinne

    jolinne says:

    Thanks for the great info!

    5 years ago

  • craftpile

    craftpile says:

    Thank you!

    5 years ago

  • bethtastic

    bethtastic says:

    OneClayBead--totally agree! Also--you can be subjected to more scrutiny when you have a "home office." For some reason, to deduct part of your house is just not worth it anymore (my tax guy said that in the past, the deductions were higher for H.O.'s, but now it's just a headache). My entire basement/downstairs is a dedicated area, but I just don't mess with it. Too much involved with that for little benefit. As I said before, try to keep it as simple for yourself as possible. Don't let the idea of it overwhelm you. Go month by month, add up all of your totals for things you spent, check out your monthly etsy fees, and paypal has a WONDERFUL printout of all the fees they collect from you. All of this makes it a piece of cake. Or pie. Whichever you prefer.

    5 years ago

  • nomadcraftsetc

    nomadcraftsetc says:

    This is a great list. We have already done our taxes-wish this would have been up sooner! Will bookmark for future reference! Thanks!

    5 years ago

  • bethtastic

    bethtastic says:

    Oh! More more random thing: If you buy supplies for your shop, and you have access to online banking, I suggest using one debit or credit card specifically for your purchases, so you can go back to your bank statements and highlight what you've spent for your shop. My bank allows me to go back an entire year--super helpful when you are too busy to keep every receipt! Also--if you buy supplies and stuff from etsy or ebay--check your paypal and your etsy/ebay accounts just to double check you didn't miss any key deductions! :)

    5 years ago

  • emcaven

    emcaven says:

    Thanks for this informative post!

    5 years ago

  • hulagirlsoapco

    hulagirlsoapco says:

    All the deductions will be utilized by me this year. Including deduction of my space I work in. It lowers my rent per year cannot beat that!!

    5 years ago

  • hulagirlsoapco

    hulagirlsoapco says:

    Oh I have an accountant, I could not do this myself. He figures out all the deductions. I just have to save all my receipts! (That's the challenge)!

    5 years ago

  • RetrospectPhoto

    RetrospectPhoto says:

    Great article! I recently downloaded an iPhone app to help keep track of the mileage... works great.

    5 years ago

  • WonderTurtleSoaps

    WonderTurtleSoaps says:

    Really great advice! Already did my taxes for last year and found out that I need to keep better track of these kinds of things for this year. Thanks for this handy article!

    5 years ago

  • baconsquarefarm

    baconsquarefarm says:

    Thanks, have most of my bases covered except the home office deduction, making a note of this after I click add your comment.

    5 years ago

  • rainpeople

    rainpeople says:

    thank you for the informative article! gotta get practical sometimes...LOVE the header photo by funkyjunkyart xoxo

    5 years ago

  • kadlubik

    kadlubik says:

    your input is much appreciated! thanks

    5 years ago

  • breadandroses2

    breadandroses2 says:

    The home office deduction is worthwhile if you are a renter but be careful if you're a homeowner. When home is sold, that deduction may have to be repaid. It's a odd quirk but one that can cost a lot cumulatively after house is sold. This was true in years past; will have to check out the most current rules.

    5 years ago

  • JennCaen

    JennCaen says:

    Please run this again next year~ Hopefully by then I will really need it. Awesome!!

    5 years ago

  • thecrochetloft

    thecrochetloft says:

    Good information this helps alot.

    5 years ago

  • girltuesdayjewelry

    girltuesdayjewelry says:

    great advice! thank you!

    5 years ago

  • saintesmariesjewelry

    saintesmariesjewelry says:

    great info thanks!

    5 years ago

  • OpulentOddities

    OpulentOddities says:

    Can't think. Hates taxes.

    5 years ago

  • lulubugjewelry

    lulubugjewelry says:

    This is my first time dealing with the self-employment tax. It is horrendous! Save your receipts and deduct every penny that you can. A good CPA is invaluable at tax time, and nowhere near as expensive as I thought it would be.

    5 years ago

  • JanesGemCreations

    JanesGemCreations says:

    Thanks for the info.

    5 years ago

  • risamay

    risamay says:

    Great article. Priceless advice. Thank you!

    5 years ago

  • BambuEarth

    BambuEarth says:

    Sooooooo helpful. Thank you so much.

    5 years ago

  • opendoorstudio

    opendoorstudio says:

    thank you for this great information!

    5 years ago

  • carlossantiago

    carlossantiago says:

    thanks for the tips! great 2 know. PARK

    5 years ago

  • polkadotmagpie

    polkadotmagpie says:

    I hate this time of the year! Great indie biz basics. Thanks for bringing up a subject so well, I didn't mind. :-)

    5 years ago

  • bhangtiez

    bhangtiez says:

    great info

    5 years ago

  • artofjane

    artofjane says:

    Thanks for the tips, even though I hate accounting, numbers, taxes, etc.

    5 years ago

  • MWNaturesAntiquities

    MWNaturesAntiquities says:

    TAX breaks are what everyone needs,Thanks!

    5 years ago

  • GiantJewels

    GiantJewels says:

    And don't forget to pay yourself, too! Great info, thanks!

    5 years ago

  • AntiGenre

    AntiGenre says:

    Great information - thank you! Feeling a bit queasey about the whole tax thing now, but this advice should help:)

    5 years ago

  • twoinspireyou

    twoinspireyou says:

    Thanks so much for the tax info. Seems easy to read and understand... much needed and much appreciated! Thanks Etsy and!!!

    5 years ago

  • lovelygifts

    lovelygifts says:

    Thank's for the info!

    5 years ago

  • nookiejars

    nookiejars says:

    Thanks for the tips about deductions related to Paypal and credit card fees etc. I already filed and used at the recommendation of a friend who is a web site designer. Really helpful. Federal returns are free, state is about $8 or you can spend $17.95 and be able to use a tax tutor, preview filled in forms and schedules, as well as file both state and federal electronically. Fortunately I had tracked income and expenses in an Excel spreadsheet so the filing took two sessions for a total of about 5 hrs.My friend said always yields the highest return for him. I could never be an accountant.

    5 years ago

  • TheCraftyDragonfly

    TheCraftyDragonfly says:

    Any advice on finding a good accountant?

    5 years ago

  • searchandrescue
  • patspottery

    patspottery says:

    I do all of the above:>)

    5 years ago

  • vitamini

    vitamini says:

    Thanks for the tips!

    5 years ago

  • AntoinettesWhims

    AntoinettesWhims says:

    Great info ~ Thank You!

    5 years ago

  • RenataandJonathan

    RenataandJonathan says:

    Great info .Thank you !

    5 years ago

  • infusion

    infusion says:

    Thanks for the input. I am hiring a CPA this year!

    5 years ago

  • KristenVonHohen

    KristenVonHohen says:

    luckily my taxes are done and I did hit up all of those tips. hello refund :)

    5 years ago

  • LayneyDasher

    LayneyDasher says:

    Thanks for the info, I am printing this to make sure I haven't missed anything!

    5 years ago

  • birchbeerboutique

    birchbeerboutique says:

    thank you for these tips. for the first year ever i am enjoying tax time preparations...I'm sniffing deductions out like a ferret. Don't forget to deduct your photo props, models and any gallery fees or travel expenses incurred getting to said galleries. You can qualify for a 50% deduction for business related hotel expenses as well in Canada. Good luck all!

    5 years ago

  • birchbeerboutique

    birchbeerboutique says:

    Oh yes and for the Canadians worried about business taxes, we don't have to officially apply for a business license until we make $30,000.00 or more. Which means no messing with the GST/HST until that point. Phew.

    5 years ago

  • JL67

    JL67 says:

    WOW! Who knew...thanks for the informative info! :)

    5 years ago

  • BenandJess

    BenandJess says:

    Make sure you keep all your receipts incase the tax man comes knocking on your door to check what you've been up to.

    5 years ago

  • diannek

    diannek says:

    My husband is an accountant so I just hand everything over to him...........thank goodness

    5 years ago

  • CuriousSparrow

    CuriousSparrow says:

    Great tips!

    5 years ago

  • whphotography

    whphotography says:

    My accountant has schooled me on most of these, but it's so helpful that Etsy's support ranges widely. I've known business owners to stretch what they claim to books (for information) and music (for inspiration) and, yes, waxing bills.

    5 years ago

  • styleforlife

    styleforlife says:

    This is fantastic information for planning next years taxes. Thank you Etsy and Outright! Emily at EL Vintage follow my blog:

    5 years ago

  • ElasVintageFinds

    ElasVintageFinds says:

    Thank you for this article. A lot of this I was not aware of.

    5 years ago

  • bertiescloset

    bertiescloset says:

    thank you...head hurts

    5 years ago

  • rarebeasts

    rarebeasts says:

    Lots of these ideas good for Australian tax time as well, thanks for that.

    5 years ago

  • Iammie

    Iammie says:

    Thank you.

    5 years ago

  • danielabesso

    danielabesso says:

    thank you

    5 years ago

  • madebyferdy

    madebyferdy says:

    thank you

    5 years ago

  • danielabesso

    danielabesso says:


    5 years ago

  • danielabesso

    danielabesso says:


    5 years ago

  • SimplyCutebyKarin

    SimplyCutebyKarin says:

    This is excellent. Thanks!

    5 years ago

  • maggiemaevintage

    maggiemaevintage says:

    thanks for the great info.

    5 years ago

  • pasin

    pasin says:

    Thanks for the post

    5 years ago

  • MyJunkyTrunk

    MyJunkyTrunk says:

    Really helpful...thanks!

    5 years ago

  • BellaLili

    BellaLili says:

    Great tips! Sometimes breaking a big task into small manageable steps really helps alleviate most of the stress. Thx!

    5 years ago

  • art2theextreme

    art2theextreme says:

    WOW! Thanks for the great tips!

    5 years ago

  • Floreal

    Floreal says:

    very very helpful information.. thanks..:)

    5 years ago

  • litapsilverj

    litapsilverj says:

    Great tips! count down .....

    5 years ago

  • oldcrowfarm

    oldcrowfarm says:

    Great article, thank you so much!!!

    5 years ago

  • worksandfinds

    worksandfinds says:

    I just finished my taxes. Thanks.

    5 years ago

  • beadsbloomsbeyond

    beadsbloomsbeyond says:

    great info, thanks etsy

    5 years ago

  • julessabjewelry

    julessabjewelry says:

    This is great information for those of us who are just getting our shops up and running! Thank you for sharing!

    5 years ago

  • DornickDesigns

    DornickDesigns says:


    5 years ago

  • funkyjunkyart

    funkyjunkyart says:

    Very helpful, thank you!

    5 years ago

  • ArtisticIntentions

    ArtisticIntentions says:

    This is great info. Thank you!!

    5 years ago

  • beatknits

    beatknits says:

    Thanks so much. I didn't think of all of the deductions. Will you publish this again next year?

    5 years ago

  • jimmypickles

    jimmypickles says:

    Good info. Another tip, always remember to keep your reciepts!

    5 years ago

  • moosomething

    moosomething says:

    Such an awesome resource. Thank you for always helping us!!

    5 years ago

  • TheLoudLion

    TheLoudLion says:

    THANK YOU!!! :)

    5 years ago

  • EGmanor

    EGmanor says:

    Thanks for the tips things change every year and its hard to keep up with everything, thanks deb

    5 years ago

  • SewMerry

    SewMerry says:

    Great information. I needed this. Thank you!

    5 years ago

  • beadingheartco

    beadingheartco says:

    Excellent! Thank you!!

    5 years ago

  • beadingheartco

    beadingheartco says:

    Excellent! Thank you!!!

    5 years ago

  • RockArtiste

    RockArtiste says:

    A wealth of information! Thanks Etsy.

    5 years ago

  • VibrantStyles

    VibrantStyles says:

    Thanks great information for a newby!

    5 years ago

  • OsoVictoria

    OsoVictoria says:

    Thanks so much for this needed information. Both my tax deductions (children) will no longer be so for 2010 taxes.

    5 years ago

  • zueeuz

    zueeuz says:

    Good list, btw, thank you etsy for keeping my billing info on line, one less thing I need to do for myself. No keeping track of receipts, no adding, no double checking my math. Sorry to have taken you for-grated.

    5 years ago

  • jewelsbyjaime

    jewelsbyjaime says:

    Thanks for the info!

    5 years ago

  • QuiltSewCover

    QuiltSewCover says:

    Great article. Good reminders of common but easy to forget deductions. AND, it's really fun to see one of my checkbook covers in the related items! Thanks!

    5 years ago

  • MaryFosterCreative

    MaryFosterCreative says:

    Very informative article. Thank you to the sellers who commented about the downside of taking a home office deduction.

    5 years ago

  • RubyStudios

    RubyStudios says:

    I thought I had covered all my deductions, but you just pointed out even more!! Please repeat this post or one like it in the future to help others out. To Etsy and everyone else who chimed in with helpful info--thank you!

    5 years ago

  • GetLathered

    GetLathered says:

    What worthwhile information--thanks for telling us!

    5 years ago

  • ConservationClothing

    ConservationClothing says:

    Thanks for this helpful information.

    5 years ago

  • saylorrose

    saylorrose says:

    Thank god you wrote this artical! I had all these questions brewing in my head and so many were answered here! Thank you!

    5 years ago

  • janetdesigns

    janetdesigns says:

    Thanks a lot for all the info. Good time to go over all of it. The bookkeeping is last thing on my mind, but now it is bookmarked.

    5 years ago

  • HighlandBeads

    HighlandBeads says:

    Thank you!

    5 years ago

  • NewBagsByAnOldBag
  • NewBagsByAnOldBag
  • ConcordSoap

    ConcordSoap says:

    Great info!

    5 years ago

  • ShadowCutter

    ShadowCutter says:

    my odometer doesn't work, how do I deduct car expenses without mileage?

    5 years ago

  • honeysweet

    honeysweet says:

    so helpful. great motivation to start keeping SUPER organized records.

    5 years ago

  • Zahour

    Zahour says:

    YIKES!!! Oneclaybead! How could I be so stupid? I had no idea about that capital gains on your home office! Our house has doubled over the years, looks like I am in big trouble when we sell... so if I stop claiming the home office now, then sell in a year or two, what then? Must go call an accountant.

    5 years ago

  • pinkpolkaDotties

    pinkpolkaDotties says:

    Thanks for the informative tips. Very helpful!!!!

    5 years ago

  • bethtastic

    bethtastic says:

    Hey guys, I've given out my simple Excel spreadsheet to a quite a few people. If you want it, please include your email addy in the convo so I can attach it for ya. Zahour and OCB--the capital gains thing is why I don't claim my office--hardly seems worth it, right? I'd hate to pay 1000's if and when we do decide to sell it! :) Also--It's great to keep good "online" records, honeysweet, so you don't give yourself a headache pulling random receipts out of a coffee bin. :)

    5 years ago

  • bethtastic

    bethtastic says:

    Oh, yes, and Paypal + Etsy have fantastic tools for printing out records of what you sold + your fees. SO much easier than going through every sale-(I made that mistake 2 years ago). Ah well, you learn by doing, right?

    5 years ago

  • outright

    outright says:

    RubyStudios, beatknits, and everyone else; thanks so much for the wonderful support! Rest assured, we have more tips under way and you can always get answers to pressing tax questions on Zahour, OneClayBead and bethastic, the home office deduction is a mess with complications. We've covered the issue of capital gains upon the sale of a home in more detail here: ShadowCutter, though the IRS recommends using the odometer, that's not the only means of figuring it out. On we have a link to Google Maps to plot a course and figure out miles. You only need to record a trip taken for business purposes and miles therein. Under your expenses tab you can record those miles (we'll figure out the deductible value at the rate for the period). Best to get in the habit of simply jotting it down. TheCraftyDragonfly, give us about a week, we'll have a fantastic way to find a good accountant. :)

    5 years ago

  • OrientalCultureHmong

    OrientalCultureHmong says:

    Great article!Thanks for sharing! (^o^)

    5 years ago

  • BeadedTail

    BeadedTail says:

    Great information! I'm a CPA and I know there is so much false information out there about taxes so it's nice to see Etsy helping the community in understanding it.

    5 years ago

  • StirDesigns

    StirDesigns says:

    Thanks Etsy and Outright, We'll be checking for the updates!

    5 years ago

  • RevolvingDor

    RevolvingDor says:

    Ooh, I'm signing up for Outright today! Looks like it will certainly beat my homemade (and poorly organized) spreadsheet! Thanks!!

    5 years ago

  • evelynwhite

    evelynwhite says:

    I signed up for Outright and it is so easy to use. Thank you so much! I needed a program that would make my bookkeeping easy and let me spend more time in the studio and less on my computer!

    5 years ago

  • LowlaBug

    LowlaBug says:

    Thank your for this perfectly timed Post!

    5 years ago

  • earthnskystudio

    earthnskystudio says:

    Thank you! Invaluable info.

    5 years ago

  • GracefullyGirly

    GracefullyGirly says:

    Thanks for the suggestions! It's nice that now I don't have to go and look up the mileage amount. But, it means I do have to get down to business soon and work on those taxes. This is my first year doing taxes for a business so every bit of help is appreciated!!! It's SO much more involved than a personal return. I think I can, I think I can...

    5 years ago

  • ReADressedResale

    ReADressedResale says:

    Hi, Thank you for this article. I am new to etsy and stilling figuring out the tax side of a small business. I actually signed up for outright immediately but had some trouble importing my data.This article has been a great start to my research!

    5 years ago

  • etincellestudio

    etincellestudio says:

    I am saving that one for sure! no9t living in the US but many advices can actually apply in many other countries! Thanks

    5 years ago

  • elemegibere

    elemegibere says:

    Thanks for the info!

    5 years ago

  • jguilddesigns

    jguilddesigns says:

    soo helpful! I agree w/ others, please post next February!!

    5 years ago

  • sihaya09

    sihaya09 says:

    Dangit. I remembered ETSY fees but not PAYPAL. I will bookmark this for next year!

    5 years ago

  • Ophiana62

    Ophiana62 says:

    I've started making jewellery and some other items fairly recently and have been wondering how selling these actually works on Etsy. Haven't had any sale so far.

    5 years ago

  • TwinTreeCrafts

    TwinTreeCrafts says:

    I'm a new seller and won't be doing taxes this year. But I wonder how much you need to sell before you need to file business taxes? Is there a rule about this?

    5 years ago

  • herie7

    herie7 says:

    Thanks for the info I just set up my shop so it is nice to get ideas on what to start to compile for the tax season.

    5 years ago

  • squeakydingo

    squeakydingo says:

    wow - thank you, this is terrific. :)

    5 years ago

  • MargalitRosanoff

    MargalitRosanoff says:

    Just in time! Thank you for the help!

    4 years ago

  • NinisTinyTreasures

    NinisTinyTreasures says:

    I have a question. When are you considered a crafter and when does it become a need to get a business license and a EIN number and start all the tax stuff. I just started this as a hobby, but I know there is some rule of thumb about an amount of profit at which time you need to make it more of an official business. Can anyone help me in locating these guidelines? I would really appreciate it. Thanks!

    4 years ago

  • avecamourbybeth

    Elizabeth Baird from avecamourbybeth says:

    do you have to be an LLC or have an EIN to write off expenses on your taxes? I didn't make enough to get a 1099; from my understanding you have to make at least 20,000? I'm confused about this whole tax thing still, and the deadline's tonight.

    3 years ago

  • tain53

    Jeannette from LittleBuddhaDogCoats says:

    Any thoughts on Canadian taxes? Also checking your sight on customs as I know nothing! Just listed my first coat so looking for all the help I can get.

    3 years ago

  • TheYarnMarm

    Margaret Trousdale from TheYarnMarm says: looks good to me! Although at the top bar, once I finished downloading and looking around, it said: "Free access until December 31,2012" . I'm wondering how much $ they want from a very small business person? Hopefully, they have a sliding scale based on income produced.

    3 years ago

  • trishnajewelry

    Kate from trishnajewelry says:

    It seemed fine, except that they also want to have permission to EDIT my shop info. Why would I give them the ability to edit my shop banners, info, etc.? Why do they want it? I don't trust them at all. This is a very odd thing. I thought about emailing etsy but etsy doesn't own outright so they won't have the answers. Did anyone else fine this odd? Convo me if you have any info! Thanks -- Kate

    2 years ago

  • berniceslp

    Bernice Decker from NooksAndGrannys says:

    Thank you for the information. I am not interested in I am in process of setting up books on excel, and can add these items. Additionally, my bank provides a tool to keep track of expenses. I agree with Kate from trishnajewelry, there is no reason for anyone to edit shop information.

    2 years ago

  • MargiesNaturalJewels

    Margie Becknell from MargiesNaturalJewels says:

    Thanks so much for the info on deducting small stuff like mileage . This info has been so helpful . I'm going to start doing craft fairs and now I'll be able to deduct my mileage for that ! Thanks so much !!! Thanks to all the people who commented with additional info on deductions and easy ways to save time on obtaining deductions on items bought thru Etsy and Ebay and I'd forgot Paypal keeps track of purchases . This all will help !

    1 year ago

  • No pierdas: Deducciones fiscales para vendedores a menudo olvidadas | Etsy habla Español says:

    […] de Don’t Miss Out: Often Missed Tax Deductions for Sellers de eetzee, por Paula […]

    1 year ago

  • Small Business Tips & Know Hows | SimplistiCreations says:

    […] And of course- be constantly inspired by others who are there to share with you their journey via Etsy’s Featured Shops and take note of what makes them successful. Eventually, you’ll pick up a pattern! **Additional business talks like Taxes we don’t really think about. Etsy provides a detailed list of items you could tax deduct from! You can see that list here. […]

    303 days ago

  • careyclaire

    Claire Hedley from TheRuffledFeatherBou says:

    Hello, I'm relatively new to selling on Etsy and I'm still trying to get my head aroud how to represent my income and expenditure. I just want to check something.... hope someone can help! 1) When I make a sale through direct checkout, there is a credit card fee. Do I represent this as a cost deducted from my profit? 2) If I do, how do I record proof of this cost? i.e. a receipt of it being paid? Where can I get paper proof from in case I get audited? I know I can download records from Etsy, but this is just a spreadsheet that I could have created myself. Many thanks!

    214 days ago

  • myscap

    Pat Norton from myscap says:

    If the seller spends the night away from home such as for a craft fair or to purchases supplies, can't the hotel and meals be deduced.

    54 days ago

  • sifrimania

    Ana Caputo from Sifrimania says:

    Great information, thank you!!

    54 days ago