Selling on Etsy means tracking cost of goods, fees, and supplies — and getting the hobby-vs-business line right.
An Etsy shop is a business reported on Schedule C, and Etsy issues a 1099-K for your sales. The key to an accurate return is your cost of goods sold — the materials and inventory that went into what you sold — plus the fees and shipping Etsy and payment processors take out.
Income you’ll report on: 1099-K.
Most people in this line of work leave money on the table. Here's what we make sure to capture:
If you earn as an independent contractor, yes — self-employment tax is 15.3% (Social Security and Medicare) on your net profit, on top of regular income tax. You deduct half of it, and every business deduction lowers what you owe. We handle the calculation on Schedule SE.
Common write-offs include cost of goods sold (materials and inventory), etsy listing, transaction, and payment fees, shipping and packaging supplies, home studio / workspace, plus a share of your phone and any home-office use. We go through your year line by line so nothing legitimate gets missed.
If you expect to owe $1,000 or more for the year, the IRS generally wants quarterly estimated payments to avoid an underpayment penalty. We calculate them so next April isn't a surprise.
Yes. Your income is taxable whether or not a client or platform sent a 1099. We report it correctly and offset it with every deduction you qualify for.
Tell us what you've got and we'll come back within one business day with the plan and the price · from a preparer who knows your line of work.
Tell us what you’ve got