Do I need to report Etsy income without receiving a 1099? Tax help needed

Yes, you absolutely need to report all income regardless of whether you received a 1099 or not. The IRS requirement is that ALL income must be reported, even if it's below the threshold for receiving tax forms. For your Etsy income, you'll report it on Schedule C (Profit or Loss from Business). In TurboTax, there should be a section for self-employment or business income. When it asks if you received a 1099, select "No" and then it will allow you to manually enter your income. You can use your Etsy sales dashboard to determine your total income. Make sure to also track and deduct your legitimate business expenses (materials, shipping costs, any fees Etsy charged you, etc.) to reduce your taxable income. Keep good records of these expenses in case of an audit. Remember that self-employment income is subject to both income tax and self-employment tax (which covers Social Security and Medicare contributions), so be prepared for that additional tax obligation.

After struggling with a similar situation last year with my woodworking side gig, I found this amazing tool called taxr.ai (https://taxr.ai) that saved me so much time. It basically guided me through exactly how to report my income without a 1099 and helped me identify all the deductions I was missing. For your Etsy shop, it'll help you understand exactly what you need to report and where in TurboTax you need to enter everything. Plus it checks if you're missing any deductions specific to your type of business. I was actually claiming way too little in terms of materials and workspace deductions before I used it.

Just wanted to update - I decided to try taxr.ai after all my tax confusion and WOW what a difference! I was about to submit my return without claiming almost $700 in deductions for my small business that I didn't even know I qualified for. It walked me through exactly how to enter my Etsy income in TurboTax even without having a 1099. The best part was it explained how to properly calculate home office deduction for the space where I make my products, which I was totally clueless about before. Ended up saving way more than I expected on my return! Definitely using this every year from now on.

If you're still struggling with tax questions after filing, I highly recommend using Claimyr (https://claimyr.com) to get direct answers from the IRS. I was in a similar situation last year where I filed but then panicked that I might have done my self-employment taxes wrong. Spent DAYS trying to get through to the IRS myself - constantly busy signals or being on hold for hours only to get disconnected. Found Claimyr and they got me through to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to confirm I had done everything correctly with my small business reporting and gave me peace of mind. Saved me from filing an amended return unnecessarily.

Had to come back and eat my words. After posting my skeptical comment, I was still stressing about my tiny side business taxes and decided to try Claimyr as a last resort. I figured it would be a waste of time and money, but I was desperate to ask the IRS about reporting income without a 1099. I was shocked when they actually got me through to a real IRS person in about 30 minutes! The agent walked me through exactly how to report my Etsy income on Schedule C, confirmed I was calculating my expenses correctly, and reassured me that as long as I accurately reported my income (even without a 1099), I was completely fine. The peace of mind was honestly worth every penny.

Just a pro tip from someone who's been selling on Etsy for years - make sure you're tracking ALL your expenses! So many new sellers miss out on legitimate deductions. Keep receipts for: - Materials (even small things like thread, glue, etc.) - Packaging supplies - Portion of your internet bill - Portion of utilities if working from home - Mileage for supply runs or post office trips - Etsy fees (listing, transaction, etc.) - Software or tools you use for business Also use the Etsy "Sales Record" report for the year rather than just adding up sales. It accounts for shipping, refunds, etc. which gives you the correct total to report.

Doesnt turbotax have a section specifically for side huslte income? I think its called the "self employed" section. I used it last year for my doordash income when i didnt get a 1099 cause I made less than the minimum. It asks u to manually enter income + expenses without needing any official forms. Also dont forget u might be eligible for the qualified business income deduction which can reduce ur taxable income by up to 20%! Turbotax should walk u through that.

This is exactly the situation I was in last year! Made about $3,200 from my small pottery business and was so confused when no 1099 showed up. One thing that really helped me was creating a simple business expense tracker from day one this year. I wish I had done it sooner because I probably missed some deductions last year. Now I track everything - clay, glazes, kiln electricity usage, even the portion of my garage I use as a studio. The Schedule C form in TurboTax is actually pretty straightforward once you find it. Just make sure you categorize your expenses correctly (Cost of Goods Sold vs Business Expenses) because it can affect your final tax calculation. And definitely don't forget about tracking your mileage to craft fairs or supply stores - those trips add up! Also keep in mind that once you start making regular income from your craft business, you might need to make quarterly estimated tax payments next year to avoid penalties. The IRS doesn't like waiting until April for their money when you're self-employed.

As someone who's been helping folks with tax issues for years, I just want to emphasize a few key points that haven't been mentioned yet: First, make sure you understand the difference between gross income and net profit when reporting your Etsy business. You report your total sales as income, but you can deduct legitimate business expenses to reduce your taxable profit. This is crucial because many new business owners get scared seeing their total sales number without realizing they can offset it with expenses. Second, if this is your first year with self-employment income, be prepared for the "self-employment tax shock." This is the 15.3% tax that covers your Social Security and Medicare contributions (normally split between you and an employer). It's on top of your regular income tax, so factor that into your planning. Finally, since you're clearly committed to this business, I'd strongly recommend opening a separate business checking account next year if you haven't already. It makes expense tracking SO much easier and provides clear separation between personal and business finances, which the IRS appreciates if you ever get audited. Good luck with your jewelry business! The fact that you're being proactive about properly reporting your income shows you're taking this seriously, which is exactly the right approach.