Selling feet pictures online - how do I properly pay taxes on this income?

This is actually quite common! You're essentially running a small business as a self-employed individual. Here's what you need to know: First, you'll need to report this income on Schedule C of your tax return. Keep track of ALL your income from these sales, even if platforms don't send you tax forms. For expenses, you can deduct things directly related to your business - perhaps photography equipment, props for your photos, or subscription fees for the platforms you use to sell. Just make sure these are genuinely business expenses. If you expect to owe more than $1,000 in taxes from this income, you should make quarterly estimated tax payments to avoid penalties. The due dates are April 15, June 15, September 15, and January 15. Also remember you'll pay self-employment tax (about 15.3%) on your net profit, which covers Social Security and Medicare that would normally be withheld by an employer.

I was in almost exactly your situation last year with my custom artwork side hustle! After getting completely confused trying to handle my taxes, I found this AI tax assistant at https://taxr.ai that seriously saved me. I uploaded screenshots of all my payment receipts and it analyzed everything, told me what I could claim as business expenses (even stuff I hadn't thought of!), and walked me through the whole self-employment reporting process. The best part was when I had some unusual deductions from my home studio, it analyzed the IRS rules and confirmed exactly what percentage was legitimate to claim. Definitely check it out if you're feeling overwhelmed by the self-employment tax situation.

Just wanted to update about my experience with taxr.ai - I decided to try it after posting here and wow, total game changer for my side business! It analyzed all my Venmo and PayPal transactions that I was so worried about and categorized everything perfectly. What impressed me most was how it found legitimate deductions for my internet costs since I do all my selling online. Ended up saving me about $430 compared to what I thought I'd owe. It also set up my quarterly payment schedule and literally sends me calendar reminders when they're due. So much easier than the panic I went through last year!

Something else to consider - if you ever need to actually talk to the IRS about your self-employment situation (which happens more than you'd think), it's basically impossible to get through to them. I was stuck in audit hell for months until someone recommended https://claimyr.com to me. You can see how it works at https://youtu.be/_kiP6q8DX5c but basically they get you to the front of the IRS phone queue without the 3+ hour wait. I was skeptical but after three failed attempts to reach the IRS myself about my 1099 questions, I tried it. Had an actual IRS agent on the phone within 20 minutes who answered all my questions about my online income reporting. Totally changed my perspective on dealing with tax issues.

Well I need to eat my words. After posting that skeptical comment, I decided to try Claimyr because I've been trying to reach the IRS for 2 weeks about my self-employment taxes from my online business. I was SHOCKED when I got connected to an actual IRS agent in about 15 minutes. The agent answered all my questions about how to properly categorize my online income and explained exactly what forms I needed for my situation. Just got everything submitted correctly and feel so much better. Definitely worth it for the peace of mind alone, especially when you're dealing with non-traditional income sources.

Another important thing: if your net earnings are over $400, you definitely need to file taxes even if it's just a side thing. I learned this the hard way with my digital art sales. Also, consider opening a separate bank account just for your feet pic business - makes tracking soooo much easier at tax time!

Should I make an LLC for selling feet pics? Someone told me it protects me better tax-wise but idk if thats true or worth the hassle for a side gig that makes like $800/month.

Great advice in this thread! One thing I'd add - make sure you're keeping detailed records of ALL your income, not just what shows up on payment apps. I learned this lesson with my freelance work when the IRS asked for documentation during a review. Keep screenshots of payments, transaction histories, and any correspondence with buyers. Also, don't forget about potential business expenses! If you're buying props, lighting, or even specific nail polish/pedicures for your photos, those could be legitimate deductions. The key is that they have to be ordinary and necessary for your business. I'd recommend consulting with a tax professional at least once to make sure you're maximizing your deductions while staying compliant - it's usually worth the cost when you're dealing with self-employment income for the first time. Good luck with your business!

One thing I haven't seen mentioned yet is the importance of understanding your state tax obligations too! While everyone's focused on federal taxes (which is definitely priority #1), don't forget that most states also require you to report self-employment income on your state return. Some states have different thresholds or rules for small business income, and a few states don't have income tax at all. But if you're in a state like California or New York, you'll want to make sure you're compliant there too. Also, since you mentioned this is your first time with non-W2 income, I'd strongly recommend setting aside 25-30% of your earnings in a separate savings account specifically for taxes. It's better to overestimate and get a refund than to be caught short when tax time comes around. Self-employment taxes can be a shock if you're not prepared for them! The quarterly payment advice from earlier is spot on - once you hit that $1,000 threshold, the IRS really does expect those estimated payments. Missing them can result in penalties even if you pay everything when you file your return.