Now hopefully, if you have a craft, design or art business you were organized last year with your receipts and paperwork and you know what you made and what you spent and what you actually made after all that spending(this was a huge awakening for me recently)
How do you know if your crafty enterprise is a business or a hobby? Well, generally the IRS believes that you have yourself a business if you are in it to make a profit.
(whether you actually make one or not).
And if you have a business - here are some links you might want to check out:
1. IRS Schedule C Instructions Profit or Loss from Business
2. IRS Publication 535 Business Expenses (things you can legally deduct from your income- hint, your brand new sephora bronzer probably did not make the list)
3. Turbo Tax (super easy to use and you will not need to download all the IRS forms)
4. Craftypod's podcast Taxes for Your Crafty Business with Hunter Coleman (great info and links)
5. Outright (Etsy bookkeeping tool- I haven't tried this- if you have or do- let me know how it goes)
6. Tax Info for Small Businesses from those crafty mavens at Design Sponge
7. A Free Virtual Small Business Tax Workshop - 9 Lessons from the IRS
8. Tax Resources for the Arts Resource Network
9. The Most Overlooked Tax Deductions from Kiplinger
10. What to do About That Swiss Bank Account (you do have a swiss bank account, don't you?)
5 comments
Thanks for all the links. This was the last year my parents' tax prep lady would do my taxes so I will definitely need this information for next year when I have to do it on my own. So scared!
Thanks for the list!
Yikes- good luck Megan! Thanks Jennifer!
Outright is my savior! And Etsy has a much nicer list of easily overlooked deductions on storque; your Kiplinger's suggestion is a little out of date and more appropriate for personal taxes isn't it?
Thanks Jason for the Outright shout out and the deduction link!
- Cat :)
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