Selling crafts online

[130munch]

What is the name of your state (only U.S. law)? IL

What are the tax laws of selling handmade crafts online on sites like eBay or etsy? Is there a certain earned dollar amount that requires you to report your earnings?

 

[LdiJ]

What is the name of your state (only U.S. law)? IL

What are the tax laws of selling handmade crafts online on sites like eBay or etsy? Is there a certain earned dollar amount that requires you to report your earnings?

The law requires you to report all earnings. The law also allows you to deduct your expenses in earning the income (materials, supplies, ebay fees, shipping costs etc).
If the activity is deemed a hobby then the expenses would be deducted on schedule A as hobby expenses. If the activity is deemed a business then it would be deducted on Schedule C.

 

[mmmagique]

http://www.irs.gov/Individuals/Do-You-Need-to-File-a-Federal-Income-Tax-Return%3F-