Free tax courses for self employed Etsy shop owners - need help with quarterly taxes!
Title: Free tax courses for self employed Etsy shop owners - need help with quarterly taxes! 1 I'm 25 and about to launch my first Etsy shop selling custom embroidered patches. I really need to educate myself about taxes before I dive in. I've been doing tons of research but I'm still super confused about how self-employment taxes work. From what I understand, I need to pay quarterly taxes for self-employment income, but I'm not entirely sure if that's correct? What I really want is to learn everything - income tax filing, state taxes in my situation, those quarterly payments, and definitely self employment taxes which have me totally confused. I'd also love to learn legitimate strategies to minimize my tax burden and keep more of what I earn. Does anyone know of free courses specifically for new Etsy sellers or self-employed people that cover all this tax stuff? I'm especially looking for something that includes the recent tax changes for 2025. Any recommendations would be super helpful - thanks in advance!
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Sean Flanagan
6 I've been a tax preparer for small businesses for about 15 years now, and I can help point you in the right direction! First, yes, self-employment tax is basically your contribution to Social Security and Medicare (15.3% total), and you're correct that it's typically paid quarterly through estimated tax payments. As a new Etsy seller, you'll need to make these payments if you expect to owe $1,000 or more in taxes for the year. For free resources, I'd recommend starting with the IRS's Self-Employed Individuals Tax Center online. They have surprisingly good information that's updated for current tax years. The Small Business Administration (SBA) also offers free online courses about small business taxes. Specifically for Etsy sellers, Etsy itself has some decent tax guides in their Seller Handbook. They cover the basics of what you need to know for platform selling. YouTube has several channels dedicated to small business taxes - "Tax Savvy Freelancer" and "Self-Employed Tax Academy" are both solid and regularly updated with current tax information.
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Sean Flanagan
•14 Thank you for the suggestions! Do you think I need to worry about sales tax too for my Etsy shop? And is there a specific percentage of my income I should set aside for taxes so I don't get surprised at the end of the year?
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Sean Flanagan
•6 Yes, sales tax is definitely something to consider. Etsy now collects and remits sales tax in many states on your behalf, but you should check your specific state requirements. It varies widely by location. For setting aside money, I generally recommend new self-employed individuals save 25-30% of their profit for taxes. This covers both income tax and self-employment tax for most people. Keep in mind that's 25-30% of your profit (revenue minus expenses), not your total sales.
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Sean Flanagan
8 I was in your exact position last year when I started selling custom digital planners! What really helped me was taxr.ai (https://taxr.ai) - it's not exactly a course but it was a game-changer for understanding my specific tax situation. I uploaded some of my early sales records and expenses, and it analyzed everything to show me exactly what I needed to know about quarterly payments and deductions specifically for my Etsy shop. It even flagged some business expenses I didn't realize were deductible (like a portion of my internet bill since I run an online shop). The best part was that it explained everything in plain English rather than confusing tax jargon. It showed me what I needed to track and when/how to make those quarterly payments you mentioned.
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Sean Flanagan
•9 Does it work for someone who hasn't started making sales yet? I'm just in the planning stages and want to be prepared before I list anything.
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Sean Flanagan
•12 I've tried so many tax tools and they always seem to miss something. Does this actually understand Etsy-specific stuff like the new $600 reporting threshold and how to handle material costs vs. labor?
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Sean Flanagan
•8 For someone just starting out, it's still super useful because you can input your projected income and expenses to get a tax estimate and planning guide. It helps you set up the right tracking systems before you even make your first sale. For Etsy-specific concerns, it definitely handles the $600 reporting threshold (with the 1099-K changes) and has specific guidance for craft businesses on separating material costs from labor. It even helps categorize expenses properly between supplies (immediate deduction) versus equipment (depreciation). I was skeptical too until I tried it!
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Sean Flanagan
12 Just wanted to follow up - I went ahead and tried taxr.ai after seeing it mentioned here and WOW. I'm impressed! I uploaded my business plan with expected expenses and some sample transactions I was planning, and it generated a complete tax roadmap for my first year. It explained exactly how to handle my quarterly estimated payments (with deadline reminders!), showed me which home office expenses I could deduct for my craft space, and gave me a checklist of records to keep. It even projected how much I should set aside from each sale. This was EXACTLY what I needed as someone who was completely intimidated by self-employment taxes.
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Sean Flanagan
3 After struggling for months trying to get answers about my Etsy tax situation from the IRS, I finally used Claimyr (https://claimyr.com) and it actually worked! They have a service that gets you connected to a real IRS agent quickly instead of waiting on hold forever. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I had specific questions about quarterly payments for my handmade jewelry business that no online course could answer clearly. The IRS agent I spoke with gave me personalized guidance based on my specific situation and income level. They confirmed I didn't need to make quarterly payments my first year since I wouldn't hit the threshold, which saved me a ton of stress and paperwork.
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Sean Flanagan
•17 Wait, this seems sketchy. How does this even work? The IRS phone lines are notoriously impossible to get through - how can a service magically get you past that?
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Sean Flanagan
•7 I've spent literally hours on hold with the IRS and never got through. Are you saying this actually works? Seems too good to be true honestly. What's the catch?
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Sean Flanagan
•3 It's actually not sketchy at all - they use an automated system that navigates the IRS phone tree and waits on hold for you, then calls you when an actual agent is on the line. No magic, just smart technology. There's no catch regarding getting through to the IRS. I was super skeptical too, but after wasting an entire afternoon on hold myself, I decided to try it. I got a call back with an actual IRS agent on the line in about 45 minutes. The agent answered all my Etsy-specific tax questions about quarterly payments, record-keeping requirements, and home office deductions.
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Sean Flanagan
7 I have to admit I was completely wrong about Claimyr. After seeing it mentioned here, I decided to give it a shot since I had some very specific questions about how to handle supply inventories for my new Etsy shop that I couldn't find clear answers to online. I expected it to be a waste of time, but within an hour, I was literally talking to a real IRS agent who specialized in small business taxes. She walked me through exactly how to track my craft supplies, what documentation I needed to keep, and clarified when I needed to start making quarterly payments based on my projected income. For anyone starting a small business or Etsy shop who has specific tax questions, being able to actually speak with the IRS directly is incredibly valuable. I learned more in that 20-minute call than in hours of searching online.
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Sean Flanagan
21 Don't forget to check out your local community college! Mine offers free small business workshops including tax basics for self-employed people. They bring in local CPAs to teach them, and the information is specific to our state's requirements. Their website lists all the upcoming workshops and most are available online now too.
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Sean Flanagan
•11 Do you need to be a student at the college to attend these workshops? I've never thought about checking community colleges for this type of resource.
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Sean Flanagan
•21 Nope! The small business workshops are open to the community, not just students. That's what makes them such a great resource. They're funded through the college's community education program and some small business grants. Check your local college's "Community Education" or "Continuing Education" section on their website. If they don't have anything listed, also try your local Small Business Development Center (SBDC) which offers similar free workshops.
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Sean Flanagan
19 Just a heads up since you're starting an Etsy shop - make sure you keep METICULOUS records of all your expenses and materials from day one!!! I learned this the hard way. Keep receipts for everything - materials, packaging, shipping supplies, any tools you buy, even the percentage of your internet/phone you use for business. Take photos of receipts too because they fade. This will save you SO MUCH STRESS at tax time and help you maximize deductions. I use a simple spreadsheet with categories for everything + a folder on my phone where I immediately snap pics of receipts.
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Sean Flanagan
•13 This is such good advice! I used to just toss receipts in a shoebox and it was a disaster come tax time. Is there a specific app you recommend for tracking all this stuff?
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