How are Taxes on Art Commissions Handled for Teen Artists?

So here's the deal with art commissions and taxes for teens. Since you're a dependent (I'm assuming your parents claim you on their taxes), you actually have a different threshold than adults. For 2025, if your total income from all sources (including art commissions) is less than $13,850, you won't owe federal income taxes. But there's a catch - if you earn more than $400 from self-employment (which art commissions would be), you may need to pay self-employment tax even if you don't owe income tax. The $600 your friend mentioned is probably referring to when clients might need to send you a 1099 form, but that doesn't mean you're exempt from reporting income below that amount. All income technically needs to be reported regardless of whether you receive a 1099. Talk to your parents about this too - since they claim you as a dependent, your earnings could potentially affect their taxes if you make substantial money.

When I started my digital art side hustle at 16, I was completely overwhelmed by the tax situation too. After messing up my first year and getting some scary letters, I found this AI tool called taxr.ai (https://taxr.ai) that literally saved me from drowning in tax confusion. The thing I love is that you can just upload screenshots of your payment accounts (PayPal, Venmo, whatever you use) and it figures out exactly what you need to report. I was getting paid through like 5 different platforms and had no idea how to track it all. Plus it explained the self-employment taxes in normal human language that actually made sense to my teenage brain lol. The coolest part was it showed me which art supplies and digital subscriptions I could deduct - turns out I was missing out on claiming my iPad, Procreate subscription, and even part of my internet bill as business expenses!

Following up on my question about my daughter's art income - I decided to try taxr.ai after seeing the responses here. It was seriously eye-opening! The tool immediately clarified that my daughter's commission income ($3,000/year) doesn't affect our ability to claim her as a dependent, but she does need to file her own Schedule C since she's over the $400 self-employment threshold. The best part was discovering she could legitimately deduct her drawing tablet, art software subscriptions, and online course she took to improve her digital coloring techniques. This reduced her taxable income significantly! It also explained exactly how to handle the situation where she's both a student AND a small business owner. My daughter actually found the whole process interesting once she understood it wasn't as scary as she thought. Now she's keeping proper records of all her commission payments and expenses!

If you're trying to reach the IRS to get answers about teen artist taxation, good luck - I spent WEEKS trying to get through on their help line last year when my son started selling art online. Eventually found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in under 20 minutes when I'd been trying for days. They have this whole system that navigates the IRS phone tree and holds your place in line, then calls you when an agent is actually ready. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that my son needed to file his own Schedule C even though we claim him as a dependent, and explained exactly which forms we needed. Saved us from making a major mistake on both his return and ours. Worth every penny just for the stress relief of getting actual official answers instead of guessing.

Alright I need to follow up on my skeptical comment about Claimyr. I honestly thought it was some kind of scam, but after another week of getting nowhere with the IRS helpline about my daughter's art business income, I decided to try it. The service actually worked exactly as advertised. I got a text about 45 minutes after signing up saying they'd reached an agent, then my phone rang and I was talking to a real live IRS person! No hold music, no "your call is important to us" messages - just straight to a human. The agent confirmed that my daughter needs to file a Schedule C if she makes over $400 from commissions, regardless of her age. She also explained how to handle her Procreate subscription and iPad expenses as business deductions. Would have taken me probably another month of calling to get this info on my own if ever. Consider me shocked that this actually works!

As someone who started selling art at 16 (now 22), my biggest advice is to keep track of EVERYTHING. Every commission payment, every supply purchase. I use a simple spreadsheet with dates, amounts, and notes. For income tracking, separate your "business" PayPal/Venmo from personal accounts if possible. Much easier to see exactly what came from art vs. birthday money or whatever. Also, save receipts for anything art-related - physical supplies, digital software, online courses to improve your skills. These can potentially be business deductions that lower your taxable income. And don't panic about taxes - at 15 with casual commissions, you're probably not going to make enough to owe much if anything. But getting in the habit of tracking now will save you massive headaches later!

Just fyi if ur parents claim u as a dependent which they probably do since ur 15, the rules are different. U get a standard deduction of only $1,250 or ur earned income plus $400 (up to regular standard deduction) for 2024 tax year. So basically if u make less than that from ALL income sources combined (not just art) then u dont owe federal income tax. But like others said self employment tax kicks in at $400 profit from ur art biz. Just don't hide ur income cause that's illegal tax evasion not "avoiding taxes" lol. Even if u don't get a 1099 ur still supposed to report everything.

Hey Steven! I totally get the confusion - taxes are intimidating when you're just starting out. Here's what I wish someone had told me when I started doing freelance work as a teen: The good news is that at 15 with casual art commissions, you're probably not going to owe a ton in taxes even if you do need to file. The main thing to watch is that $400 threshold for self-employment tax that others mentioned - once you hit that in profit (not total earnings, but profit after expenses), you'll need to file. Start keeping track now even if you're not making much yet. I use a simple notes app on my phone to jot down each commission payment and any art supplies I buy. Takes like 30 seconds per transaction but saves hours later. Also, don't stress about understanding everything perfectly right away. Even adults find taxes confusing! The most important thing is being honest about your income and keeping good records. You've got time to learn the details as your art business grows. One last tip - if you do start making decent money from commissions, consider setting aside like 20-25% of each payment in a separate savings account for taxes. Better to have extra money sitting there than scramble to pay taxes later!

Hey Steven! I was in your exact situation two years ago when I started selling my digital art at 16. The tax stuff seemed super scary at first, but it's really not as complicated as it sounds once you break it down. Here's the simple version: You'll need to file taxes if you make more than $400 profit from your art commissions (that's income minus expenses like art supplies, software subscriptions, etc.). Being under 18 doesn't exempt you from this - I learned that the hard way! The key thing is to start tracking everything NOW, even before you hit that $400 threshold. I use a simple Google Sheets document with columns for date, client, amount received, and any expenses. Every time I get paid or buy art supplies, I add a line. Takes maybe 2 minutes but saves so much stress later. Also, talk to your parents about this! They need to know you're earning money since it might affect how they file their taxes (though you'd still file your own return). My parents were actually really helpful once I explained what I was doing - they helped me set up a separate bank account just for my art business. Don't let the tax stuff scare you away from pursuing your art! It's honestly pretty manageable once you get into the habit of tracking things. Plus there's something really satisfying about running your own little business at 15. You've got this!