Etsy Taxes Explained 2022 For Beginners (Self Employed Taxes For Dummies) What Is Tax Deductible?
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- Äas pĆidĂĄn 21. 07. 2024
- In this video I go over everything I wish I knew when I started my Etsy shop about owning your own small business and filing taxes!
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Finally a video that explains taxes!! This is the #1 thing that intimidates me when starting an Etsy shop
I hope this was so helpful for you!! Thanks for watching!
Im in this exact situation right now. Just paid over $10k then found out I need to be paying quarterly, so I owe another $2k right away. So frustrating. We really get the shaft as small business owners. You would think the government would give us better tax breaks but nooooo, that's reserved for the billionaires.
Thank you for taking the time to explain this. The examples you used were useful as well. Very much appreciated.
Very helpful Cassiy. Thank you very much!
This is the best etsy taxes video I have come across in the last year ! Thank you!!!!!!!
You have literally answered almost every question I have spent weeks and weeks researching and agonizing over before opening my shop. I will be starting my Etsy shop tomorrow now that you have eased all my worries! Thank you so much!!!!!
Amazing explanation. Other people make it so complicated and you think there's something wrong with you until someone breaks down everything for you with an excellent natural languages! Thank you I just subscribed!
Thank you so much for sharing this information Cassiy! This has been my biggest unknown so I am so very grateful for you having shared this with us!
It is a lot to learn without worrying about taxes so I am happy to share my experience
Thank you for being honest I really appreciate the information
Very helpful! I also love your Excel spreadsheet I bought and track everything!
So glad you love it!! It makes it all so much simpler
Just got done listening to your all your videos. They all ROCK!! Thank you!!!
Wow thank you so much Dan!!
Thank you so much for this knowledge!
So helpful! Seriously read my mind! Thanks.
So glad I could help! This is the video I wish I saw when I first started
Oh my, taxes sound so discouraging, but it is, what it is. Many people forget about taxes and only look at the revenue of other creators who have businesses, and claim to make "6 figures" which indeed half of it is taken by IRS. And then get into some problems, or get into trouble. thank you for making a good explanation. âš
Thank you! So, so helpful! Subscribed!
You have a new subscriber! Oh my gosh thank you so much for covering this bit of information, as most people don't! You definitely helped calm my nerves in the tax department. I'd also like to thank you for covering things in a calm step-by-step manner. It is seriously so much more helpful than I can describe!
Thanks for subscribing, so glad you are here
Thank you so much for making this!! So helpful! And all your videos really :)
You are so very welcome, thanks for watching my videos
This was very helpful. Thank you so much!
So glad you found it helpful!!
I am brand new to Etsy and then Iâm also starting to do some pop-up shops and this is very helpful but itâs very confusing. Thank you for sharing tips.
Thank you! I hadn't thought about deducing my POD printify/printful costs as an expense.
Thanks for your tips on taxes, very helpful !
Taxes can be quite the bear, so glad I could help!!
I found you on here yesterday and I literally have watched over 10 videos already and Iâm not disappointed thank you so much for all these great information there is no one out there like you! Thank you againđđœ
Wow you are literally the sweetest!! Glad to have you here on my channel and hope my videos bring you so much value. Thank you so much for the kind words
@@CassiyJohnson Keep it up here you have a subscriber forever! â„ïž
Great informative video! Thank you!
So glad you enjoyed it Amy, thank you!
Thank you for sharing your experience
Thank you! Iâm so excited to get started. My store was suspended on the first day, đąso Iâm working on making lots of designs to be ready when they open it. I just hope itâs as smooth as you explained. Iâm glad you gave us the heads up on this, itâs definitely helping me panic a little less. I been waiting 5 days already and Iâm trying to remind my self you said this would happen, it will get fixed I just need to wait. đ
Oh wow, if you don't mind me asking, why was it suspended? I'm scared to open my shop đ
@@leahe2735 Actually I found out they do it to all new stores to be sure ur not a bot or something. I emailed them, got a auto response it can take 14 days for them to review the issue, but it was opened within 6 days. I made my first sale last Friday and my second on Saturday. I would say do lots of research and create at least 5 products then go for it! Iâm so happy I finally did.
Hi Cassy. I would like to start this business. Thank you for your videos.
Hello Cassiy, I enjoy very much your videos and subscription to your channel was obvious to me considering you seem like an honest and caring person. I am new to Etsy and this whole dropshipping businness. However, I do not live in US, I live in Europe and therefore, other rules apply for this concerning Taxes and such. I have found out that you do need to start an LLC or a businness first to put in your VAT-ID which is important due to the taxes and custom fees which the customers will have to deal with. Apparently, in the EU regulations you need to start a businness to receive your VAT-ID and put it in on Printify, so that when customers order something they will not have to pay double VAT, both when they order and when they receive the package which they actually do here. So, maybe you should inform this to people that are living outside of the US.
Love this so much! Thank you, Cassiy! I have had my shop open for 18 days and already have 12 sales! Your videos have been a source of guidance and inspiration - SO THANKFUL!
LETS GOO!!! S
â€â€â€â€ I BELIEVE IN YOU
Hey Jonathan, just wondering..it's been roughly 3 months since this comment... How is it going now? Are sales booming for you now or slowed down? Hardships, etc.
Wow.. that's great.. keep it up the momentum.
This was very helpful - thank you! I was looking to see more of what it looks like to work with a print on demand business like Printful, Etsy's fees, how to pay taxes and how all that works together, but you ended up informing me of things I wasn't even looking for but are good to know! Thanks for giving me even a little more confidence to try this out since you didn't have experience with these types of taxes before. Taxes is one of the main things I'm intimidated by when it comes to the idea of opening my own shop - so thanks a bundle!
So glad this was helpful to you! You can never know everything before getting started. Just get started and figure out things in little baby steps as you go! You are always going to make mistakes and have to learn some lessons but trust me, you will NEVER regret just getting started and taking this leap of faith on yourself. You really can do this, you are capable, you are smart enough, you've got this! Promise
This is so helpful!!! Can you do a video dumbing it down even further đ€Ł Like if you can use TurboTax and what forms would you need to fill out Iâm a newer Etsy shop and have done over the $600 but Iâm not quite where I want to be and feel like I just need to know more about writing off my costs and how to do so
@@CassiyJohnson Thanks! â€
I was informed by Etsy today that the $20k and 200 order threshold has been delayed by the IRS until further notice and that the $600 and 200 sale limit is the rule for 2022 taxes!
Hello Cassiy, fellow Michigander here! I'd say hold back at least 24% for taxes to make sure you have enough at the end of the year. Good info here, but like you, I'd recommend talking to your CPA/Tax Pro for more info.
Thank you for nice information.helpful
Thanks for watching and commenting, so glad it was helpful for you!
Excellent video
Well, loved the video. And the non tax thing that struck me most was realizing that you started in 2020 that you said and that you had made 42k for that year. Your first year!? You mustâve known what you were doing. Congrats on that. Whenever I start up, I plan to take the tax percentage of profit each month and put it aside for taxes. Thatâs something Iâve always been told if I were to be required to fill a 1099.
Yes it's a great idea to save a percentage for taxes every month! I'd say 30% would be a really safe number just to make sure you have enough to cover it!
@@CassiyJohnson how would you separate your profits? Like splitting the profits for the business side and personal side
Most CEOs put themselves on payroll. How would I be able to do that? If that's makes sense
Hi Cassiy, thanks for the great video. I was just wondering about the sales tax involved. Does Printify, or Etsy charge these? Did you need a sales tax exemption certificate? Any advice you can give would greatly be appreciated.
Thank you..!
This was extremely helpful, thank you Cassiy! This definitely helped calm my nerves around taxes, what I should expect, and what to prepare in advance. Can you please explain to me why it benefits me to have an LLC? Again, thank you for such thorough videos and taking the time to answer all of questions via the comments, I can't tell you how much I appreciate this! I'm also from Michigan...Dearborn! Although I no longer live in the state. :)
Once a Michigander, always a Michigander lol I am so happy to help, seriously! The only real benefit of having an LLC is that if someone sues you, they are seeing your business and not you. Other than that it really all works pretty much the same. So good idea to get one eventually but its ok to get going without it!
@@CassiyJohnson That's right! Michigan is a great state! Ok, that's what I'd heard about LLC's in the past, but I wasn't sure if there was another benefit. I will consider doing that eventually. Thanks!
Great video! How smooth was the transition from sole proprietor to LLC? Did you get temporarily suspended by Etsy? I want to do this, but I am afraid of a temporary suspension.Thanks!
Thank you so much for the great info!! Do you think you would ever make a video about starting a LLC or is that more of a state specific thing?
Hi Sam and thanks so much for the support! Starting an LLC, you are correct varies wildly state to state so I would recommend looking that up yourself to make sure it applies to where you live!
@@CassiyJohnson thank you! I know it varies but just curious did it take a while for you to set up?
@@BeautifulSam Happy to help! No it was a pretty short process for me, I set it all up online!
Love the information, new subscriber here. So I have a quick question, always get confused. So the sales tax that a buyer pays from an etsy purchase ( says remitted to tax authorities) are the taxes for the state that buyer is from, correct? And etsy automatically pays them to that state, so you'll have to include your own state taxes in the price of the item( collect and remit to your state) or it'll come from your profit, then you'll end up paying double taxes. Am I correct? Thank you in advance.
Thank you!!!!
I hope this was so helpful! thanks for watching!! â€ïž
What's the reasoning for opening an LLC? And what sales dollar amount would be the tipping point for doing so?
I love your videos, thank you so much. My one request please is that you increase your video volume. You're very soft-spoken AND your videos (across your channel) are set at a much lower volume than CZcams ads, so it feels like the house is going to collapse from how loud the ads are when they come on. It's jarring and I've not experienced this with similar channels. I can't even imagine if I was wearing earbuds. Your video sound is just too low. Otherwise, lovely and I wish you continued success.
Thanks for the feedback, I've heard this before so I started raising the volume in later videos!
Cassiy maybe you already have a video about this: could you, or do you have a video explaining paying printify? Do you pay them right when a customer places an order or when? And if I try to get a business credit card, what $$ amount of limit should I ask for? If I canât get a credit card, then Iâm forced to use my personal account, but if I get a lot of orders close together, will it drain my account to pay Printify? Iâm just super confused on the whole money end (not the profits) but how the whole payment process works and whatâs the best way to handle it. Thank you!
So the way that it works is
1. Someone orders on Etsy
2. The order gets sent to Printify and you pay for the item. Shirt cost plus shipping comes out of your Credit card of Debit card. I would get a business card with cash back with as high of a limit as they will allow but you can always pay it a few times per month if you need to.
3. Etsy pays you the amount the customer paid - Etsy fees. These payments in the beginning are once per week. If you just opened your shop you may also be "in reserves" where they keep part of the payment until the item ships. But after 90 days of your shop being open, you can change this to get paid daily instead.
Hope this helps!
This explanation really helps. I also agreed with others, you have great info and video content and are calm about it. Thank you for sharing đ
@@CassiyJohnson do you or anyone have experience with any certain business cc that you would recommend?
This is a great video, thanks! and also I know that Etsy doesb't collect the sales tax when someone buy the product from other country, how is that gonna process? Did someone had been deal with this problem?
Thank you so much for your information. So how does someone find out about taxes to be paid in the UK? How would we do that? Please advise. Thanks
Thanks for a great video, Cassiy đ
I was just wondering if Etsy collects and remits tax for all the states as Iâve read an article saying it doesnât for a few states such as New Hampshire and Missouri? đ€·đ»ââïž
I don't live in either of those states, they do here for my in MI. I'd check in the taxes pages on Etsy to see what it says!
Hi Cassiy! Do you know if there are ways to sell from a country that is not on Etsy, with a US LCC?
Thanks for the video!
I love your videos. I also listened to the life hacker family series and started my (mostly) digital shop. Can you please do a video on how to test and manage multiple listings for the same item? A lot of Etsy sellers recommend making at least 4 listings. But how long should you run a test? My shop is getting cluttered and Iâm having a hard time keeping track of all the multiple listings and remembering what Iâm testing lolâŠ.HELP!
So glad you got started! I track mine easily because I change the mock-up photo for each of the listings so they do not look the same. I just set the listings to manual renewal and then at the end of the 4 months, if they haven't sold, reevaluate if I need to adjust SEO or pictures etc. Or if I want to just let it stay expired. Sorry I don't have any perfect advice for you!
@@CassiyJohnson This is great advice! 4 months seems like a fair amount of time to let the listing run.
Amazing video. I made 5 orders this month and I can see the net profit of all the orders at the payment page. However, I want to know the net profit of each of the 5 items. How do I do that? Is it mentioned somewhere so I don't have to calculate it manually? I even downloaded the CSV files but it doesn't show the net profit it shows the amount without the deductions.
Can you explain what reports you'll need to download from Etsy for taxes and where to find them?
Weâre being triple taxed on everything itâs insane. My main income isnât Etsy. Im getting taxed on that income. I use that remaining money to go into an Etsy shop and am taxed again on that. Itâs wild.
Well you only pay taxes on the total profits, so the money you put into your business is not taxed. You just get taxed on the total profits you make just like your regular income!
Thanks for your reply! Do you know if we have to register the Etsy business formally to be able to claim anything on taxes?
IMPORTANT ABOUT THE 1099K - in December 2022 the IRS delayed the change to $600; for 2022 it is still the old law of over $20,000 and 200 sales
Hi Cassiy, thank you for all the amazing content that you are creating. I have a questions, that I hope you won't mind helping me out with. So for example, if I buy a shirt from printify for $10 + $4 shipping + etsy fees of say $1.40, so a total expenses are $16.40. Then if I go an sell the product for $20 on etsy, what happens with VAT? Do I need to then pay 20% VAT on the $20, which in this case would mean I am at a loss of $0.40 ($20 selling price - $4 VAT - $16.40 production cost). Basically, my question is can you please explain how does the VAT work?
Hello! So sorry but I donât sell anything outside of the US so I have never had to deal with VAT before. Iâd recommend trying to read up on it in the Etsy forums or see if anyone on YT has some videos about it. Sorry I canât help more!
Hey I am a Michigander as well!
Welcome to the channel fellow Michigangster ;)
2024 here and Etsy does not in fact send 1099âs for $600+ income and it is so annoying.
Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This CZcams channel is really very informative and effective.
Thank you Cassiy! Iâve read that there are no taxes in many states for selling digital products. Iâm wondering if you have to pay taxes, state or federal, for the sales in your mock-up shop.
I have not filled my taxes yet but my understanding is that you don't have to pay SALES tax on most digital products but you still have to pay INCOME taxes each year on the profit that you make off of those digital products. If you have multiple Etsy shops like I do, all of your Etsy sales come combined on one 1099.
@@CassiyJohnson
Cassiy you also mentioned that
To create an LLC for your Etsy shop is a good idea.
I have experience in real estate business and using LLC,s all the time for filling.
Can I add my LLC later in my new Etsy shop just focus now adding products, or add LLC when I open the shop?
How did you do it?
Thank you for help in advance!
Do you have to have a business bank account to start Etsy? I started buying supplies in January on my own personal account and didn't realize this as a question until now as I'm planning on opening up over the summer. I thought I could get one next tax season (after next year) and set it up and just go with that one in the future.
Great video and very informative! I may have missed this, but due to one of the last comments you made in the video, I assume this information was mostly based on having a proprietorship? I am just wondering as I'm considering an LLC.
by the way, newly subscribed!
All should still apply if you are an LLC, the only thing that will change I believe is if you ever incorporate, then you will pay slightly less self employment taxes. But I'd talk to a CPA to see what makes the most sense for you based on where you live!
would Sample shirt already be included the whole expense in the invoices? so it wouldn't need to be counted twice? thank you
Hi Cassie, is it ok to start an Etsy shop as sole proprietor and just see if it's something I want to do, and maybe change it into an actual business later? I know you pay taxes either way. Just wondering if it's easy to switch over later or not.
Thank you so much for all these helpful videos, you are absolutely amazing!!!
The only question that I have as right now - If I don't have the resale certificate than Printify will collect the taxes from each purchase, is that right?
No you donât need a resell certificate while selling on Etsy. As long as the order comes directly from Etsy to Printifys website, then you should pay not sales taxes!
@@CassiyJohnson Thanks a lot for clarificationđ
If your shipping on demand charges you for sales tax, does Etsy charge as well? Do you need to get a tax-exempt status?
Hi! I live in Uk and I was thinking to sell in USA only with the printer provider from USA. How does that work with taxes?
Hi Cassidy. Could you tell me when filling tax on Etsy, you mentioned they will send Etsy seller form 1099, so we need to give them social number and personal information, is it safe to do that because I am afraid it will lead to identification crime since we donât know if the person we submit our social number and personal information to is trustworthy or not.?
Ok just some clarification to ensure I understood: If I use etsy or even facebook market place as a platform in the year 2023 and make over the amount to where a 1099 is sent to me, when I get my 1099 at the beginning of the next year for the 2023 year to file taxes and I see I met the $1,000.00 or surpassed it only then will I be required to make payments during 2024 for that tax season?
what if we not link my debit card to printify and pay when I make my first payment?
Thank you so much, this is very helpful. Any suggestions on the state's personal properties tax return? I got a letter from the city that I'm registered in. They seem to want us list any physical properties we bought to use for the business. I was surprised to get a letter.
No so sorry I have no idea about that! But I do know there are a lot of scammers who send things to people who have LLC's telling them they owe money for this or that. So just make sure to google it to see if its a scam and if not, speak to a tax professional for assistance!
@@CassiyJohnson it is legitimate, the form I received is actually also posted in our city's website âșïž I guess if you registered as a business, then you have to report tangible assets which includes laptop. Maybe it is different in other states and cities. Will see if they will tax me on that one laptop lol.
@@misathoudsanikone7823 Thank you for sharing, that's good for other people to know as well! I am still learning as well so feel free to comment again and let us know what happens and what state you live in!
See this is one of the things that I always get confused on It's like every piece of government needs to have their hands in our pieces of pie. You got federal then state then city and then there's Nexus you have to worry about and it's all very confusing. This is some great information on here but I'm still a bit confused. I've got my Etsy account and shop up, I've got my printify all done and I've got my creative fabrica all set up, I already had a Canva account with the pro subscription so I think I'm just going to start designing and selling stuff and I can only assume that if there's somebody that wants a part of my money such as a city or state they're going to reach out and let me know. I mean everybody says to contact a tax lawyer and maybe some of you had the money to be able to do that but from the very beginning this was a business model that really wasn't supposed to cost anything to get started with so I think I'm just going to have to take my chances and learn as I go when they start trying to reach in my pockets for money. That's the only way I can think of right now to do it without hiring an expensive tax lawyer. Because they obviously don't just give information out for free. Is that how other people are doing it it sounds like especially in this one comment here but I think in this particular situation you really just didn't know that they wanted to tax your laptop for whatever reason.
So if my store made less than $500 I donât need to worry about it?
If you use printify and Etsy, do you need a reseller permit to charge sales tax from your state? Printify says on their website to upload this permit so they donât charge you sales tax the items which confuses me cuz doesnât the customer pay for all that when they purchase on your Etsy store and then printify starts printing ? This confuses me so much that itâs disheartening đą
Very nice shar
Thanks!
So if you sell digital downloads and not physical products this doesn't apply? They said I wasn't getting a 1099 and I had 2800 sales for digital designs.
Love the information. Such a big help! I would love to dm you as I have some other questions. & I would really love you to mentor me đđ
So glad you enjoyed the video â€ïž so sorry though but I am not offering any 1:1 coaching right now but I hope my free videos can help you!
Could anybody explain, or at least give me an idea where I can find information about taxes while living in Europe and having an etsy shop?
Does anyone know how can we include Etsy fees as deductible if Etsy doesn't provide invoice for this? How can we prove we paid for these?
How do we find a tax professional in our area? Iâm scared of scams, people who will have my personal information, not knowing if theyâre legit? But Iâm going to need help and I donât know where to find it.
Seems like the expenses are very high. The profit margin is a lot lower than I expected. Then the taxes, seem high as well. I'm no tax expert or sales expert, just seems the Profit and expense figures are very far apart. Maybe I'm not completely understanding, but it seems you need a lot of money to start up and keep running. I'm confused I think. Help please.
WHAT. I CAN WRITE OFF CZcams PREMIUM?! Iâve been wanting to get it to get rid of the ads since I watch POD videos all day, now hereâs my chance!
Get it girl yes!! Just make sure to track everything and you are good to go
@@CassiyJohnson Iâve been using your budget tracker which has given me peace when it comes to taxes later!
@@lauren.spraggins I am so so glad that it has been helpful for you Lauren!!
Anyone else get some old Minecraft CZcams video vibes from that intro music
If I made 500 dollars in digital sales last year and am not eligible for an etsy 1099 where am I reporting that income on my taxes? Do I write it under digital assets?
Hi
Are you explaining about sales tax Etsy collect for you or income tax? Do we need to file sales tax to the local area. I am in San Francisco Bay Area.
I am talking about income taxes in this video, Etsy takes care of all of the state taxes for you!
I wish there was a step by step video on how to file online
I pay a CPA, I'd recommend doing that probably your first year and then it will make a lot more sense when you go to file yourself the next year!
Yeah but again you must have had the money to be able to pay a CPA, what are we supposed to do when we don't have any money to put out for something like that? I mean I was lucky enough to have a dollar for the creative fabrica 30-day trial let alone paying a CPA to do everything.
I have a question... when customers buy products they pay taxes on the purchase and then I need also to pay taxes on the profit? So customer and me we pay taxes 2 times on 1 item?
yes that is exactly how it works however not every customer pays sales tax, just the ones from states that require it.
I'm finding conflicting information on State seller's permits. Does Etsy pay this to each state automatically for you now or do you still need to get a State seller's permit? Thanks so much
Etsy handles all of this for you as they are the ones licensed to collect the sales tax! No need for you to apply for all of the state sellers permits.
@@CassiyJohnson Awesome, thank you so much for your reply :)
Is an llc needed to sell on Etsy?
Do you need to set up a business LLC to have the ability to write things off? Can I still write things off if I'm just an individual and not a business?
No you don't, you can write all of those things off as a sole proprietor of your business using your own social security number!
Hi Cassiy! I'm struggling trying to figure out how sales tax works with Printify and Etsy. I know that since sales tax is paid on Etsy, I don't also need to pay sales tax to Printify, and that I should submit a resale certificate to Printify in order to not be charged this sales tax. This is where I get stuck though... Do I need to apply for a resale certificate in every state where Printify pays sales tax? Or just in the states that I have a nexus? Do you have any experience with this? Thanks so much!
I think there was an Etsy specific form to fill out for the resale certificate that says you just don't have to pay sales tax at all and don't have to apply for anything. Go ahead and message printify and they should be able to point you in the right direction!
@@CassiyJohnson Thanks Cassiy! I messaged Printify and this is what they said: "In February of this year, we launched an automated sales tax exemption for marketplaces such as (Etsy, Ebay) for orders which are shipped within the US. Therefore, Etsy merchants no longer need to fill out the exemption letter. The resale certificate on the other hand is needed in case you are also selling to another sales channel platform aside from Etsy or eBay so that you won't be charged sales tax as the goods that were purchased are intended for reselling". So it sounds like all orders that come through Etsy are automatically not charged sales tax. Hope this is helpful for others who also have this question!
Was just going through this right now and a bit confused. Thank you for posting printifyâs response! đđŒ
@@aliwilloughby5419 WOW, THANK you so much for posting the information you received from Printify. Your post was really helpful for me!
Maybe this is a dumb question but if you donât know how much youâre gonna make that year because itâs your first year, how do you know what to pay in each quarter?
Not a dumb question at all! Iâd recommend speaking to a CPA to get the best answer, I just waited until the end of my first year because I didnât know and it wasnât a huge deal. They said typically there is a small fee for doing that though.
If you want to try to do it yourself, you first need to track all of your income and expenses as you go. Then youâd just need to calculate 25% of your total profits for the quarter and see if youâd owe more $1,000. If you do, then go ahead and make a payment of the 25% to the govt. and donât forget to see what your state income taxes are as well if you have them!
There are never any dumb questions I believe. That is one of the first things I was always taught when I was younger. Especially when it comes to taxes, it almost seems sometimes like the government makes these things so difficult because they want us to screw up so that they can charge us extra fees. Lol
It looks like this process might be changing in 2023, according to some new policies that theyâre putting out đ€
Super helpful! So if you make under 600 you do not need to file? I started my print on demand Etsy shop in August and did not make many sales
Hello! Last year (2021) You had to sell less than 20k Revenue or less than 200 sales to not have to file. If you did not sell anything in 2021, then yes its my understanding that you won't have to file for 2021! In 2022, you have to sell less than $600.00 USD to not have to file taxes.
@@CassiyJohnson thank you so much for replying!!! Your always so helpful. I have been putting off doing my taxes because I was so confused and then I see your video, it is very timely and Informative!
@@meditatewithmakay4563 So glad it could help! I felt the exact same way my first year!
@@CassiyJohnson if you did not receive a 1099 because you sold less than 20K, it does not mean you do not have to file. It means no 1099 was sent to the IRS. The 1099 informs the IRS that you sold that amount, that's all. It has nothing to do with filing. Everyone with a gross income over 12,550 must file.
@@signeknudsen8513 and except for Social Security benefits (this is not included).
What if selling from Europe to the United States? (digital products only) ?
Sorry I am not familiar with the taxes in Europe so I am not sure how it might differ but here in the US, I don't think it would make a difference if you are selling digital or physical products. Just your product costs would be different obviously
Hi Cassiy, I rewrote the question, it was deleted again. Strange algorithm, I know it wasn't you. It had no strange words, links or anything. Anyway. Have a good weekend.
Thatâs so strange! Have a great weekend as well!
I have a small question. I hope you will answer. đđ» I was just going to start my POD business but printify ask for my business name but I dont have an LLC. Do I need one right now? Thank you so much!
No you don't need one yet at all, you just give them the name of your Etsy shop so they can put it on your packages! Congrats on getting started
@@CassiyJohnson Thank you very much!
Im a romanian citizen. If i open an UK Etsy shop and work from Romania, do i need to pay anything to the UK goverment? I know i have to pay the romanian goverment.
I started the business on Etsy doing a fun hobby. And I never thought it will be successfully. It's been my first year I generated 18k but I never kept receipts, and only will have a 1099 , what do I do?
Congrats!! What a fun problem to have... kind of! lol Most things should be pretty easy to go back and find to track your expenses. Go back through your Etsy purchases and add them up for the year, go back and add up from your bank account how many subscriptions you had for the year and the costs and anything else you have bought for your business.
Here is a video where I go over my bookkeeping google doc that I sell for $20 that might make it easier to put it all into one place and then work through it with your accountant! czcams.com/video/M_0xRgnhYro/video.htmlsi=pJt4ti0S0RLxGSTr
So if I donât make over 600 on Etsy I donât have to pay taxes ?
I'm sorry I'm new to all of this but your video is a great help! I do have a question though. So right now for 2021 taxes, if I made under $20,000 do I not need to do taxes since they only just recently came out with the $600 or more rule?
You have to pay taxes. The only thing that has changed is that a 1099 is being sent to the irs. That means that the irs is being informed that you brought in that amount of money from that site. The 1099 just makes it more difficult to cheat and not declare that income. You have always had to pay income tax on your profits. This video explains what you need to keep track of to have the write offs you need to lower the amount of profit you will pay tax on.
It's my understanding that if you made more than $12,550, then you have to file a tax return. You'd have to talk with a tax professional to see if that is Gross or Net Profit for the $12,550. Here is the article I found on the IRS's website though! www.irs.gov/pub/irs-pdf/p501.pdf
@@CassiyJohnson
The IRS states that if you are under 65 years old you must file if you have a GROSS income of $12,550. This is from all sources, not just your reselling business. If you have a job or any other sourse of income, add that to your gross reseller income. If you are married filing jointly you would consider half of your combined income in addition to your reseller's income.
By the way, table 1 seems to be missing from the pdf you posted. At least I could not find it and that is where the amount 12,550 is given. I found it on the IRS website.
@@signeknudsen8513 Ah okay thank you!
@@CassiyJohnson Thank you for clarifying!
Hi, I did painting of spongebob, but added some different things, so it's an original idea. But etsy deactivated it. should I do something, can they do anything else like decreasing the amounts of views for whole shop? or they just deactivated so it s enough for them? there are tons of things that contains spongebob, some of them are not modificated. they can stay active. but I modified it, why did they deactivate it, if I want them to look again will they activate it again because it s modificated?
Just because you modified SpongeBob, does not give you the rights to sell it. Even fan drawings of SpongeBob are not permitted for you to sell as he is a trademarked character. So unfortunately you cannot sell anything with pre made characters from shows or movies. The company that made them own the rights to sell them commercially.
Great