March 3, 2010
well, it’s that time of year again. time for indie businesses to shed tears over tax forms and grow a few grey hairs. though many of you may decide to hire a professional to do your taxes, after doing a little homework you may be able to do them yourself, in true diy style. our previous shop help post on separating your finances is a good place to start, do you remember it?
though we may start out on etsy to fuel a hobby, the reality is, as soon as you sell your first item, you’ve become a business. it’s important to stay organized and file correctly. to help, etsy has partnered with booking business outright.com to try to make filing taxes for indie businesses a little simpler.
if you’re in the u.s. and are selling on etsy, you must file a schedule c with your income taxes (unless you’ve incorporated). if you would like to read more on if you qualify as a hobby or a business, outright has a great article called, “business or hobby?“.
the truth is, no matter how much money you make (even if it’s just a little!) you’re still a business. outright.com simplifies tax forms and hosts everything online which makes the headache of taxes a little less ‘taxing’. from providing a mileage calculator to deduct your expenses to help with filing for your consultants or contractors, outright is worth any indie owner looking in to.
rather than list them here, i’m going to send you over to etsy to read outright’s top ten tax tips. it’s helpful and informative and definitely worthy of a read.
next i’m going to send you over to jjm finance’s forum post about filing taxes. he provides links to answers on just about every possible tax question you could have. it’s a great one-stop place to find all the relevant info you may be looking for. from which forms to fill out to help with deductables to how to contact the irs, it’s got just about everything.
here’s the article: u.s. tax guide (irs)
honestly, this articles was difficult to write. as finance and accounting were not my best subjects i would love to hear from you who have success with doing your own taxes. any experts out there?