Wednesday, April 09, 2008

Tax help needed please!!!

Alright, so this is terribly last minute and I'm struggling to finish up our taxes. I actually started them a few weeks ago, but still haven't completed them. I'm having a problem with how I should file my profits from the craft fair I did in november and things I sold on etsy. I was hoping someone could offer me some advice! (and quickly). I'm technically not a business, as I have never started anything legal to become one. I did one craft fair in November and the profit was just under $400. Do I just file this as extra income under a hobby? Any insight?? Thanks!!

6 comments:

Sarah and Jack said...

Ok, I am not qualified to give tax advice, so you should try and phone the IRS to be sure (or look on their website or something), but I think you have to earn a minimum of $700 in order to have to claim it.

Sarah and Jack said...

Actually this says your NET profit has to be above $400.

http://wiki.answers.com/Q/How_much_money_can_you_earn_before_you_have_to_file_for_taxes

Mimi said...

I asked my accountant and she says you dont have to claim it because it's not more than $400.00 and in actuality you dont have to claim it unless it exceeds $600.00

jessi said...

I was going to say the same as Sarah - you do not need to claim unless you earn more than $400.

kirsten said...

good, i was curious about this, too - so i looked it up on etsy and got the same info everyone here has says. i wonder what mimi's accountant means by 'in actuality.... unless it's more than $600?'

i'm wondering if it's worth making sure you stay under $400... so as not to pay taxes...?

Philigry said...

yes, i have heard the $600 a year rule too! you should be all set!