Question

Craft show income, expenses, taxes

Forum|Forum|1 year ago
October 30, 2024
1 reply
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Hello!

I've just started doing craft shows in the state of WI. I have filed for a state seller's permit. I plan to do 4 shows total this year. I called the Department of Revenue and know that I need to pay sales tax by Dec. 31 on all of my sales. What I'm wondering is what I need to know regarding my income taxes...do I claim all sales as income no matter the amount? Can I write off purchases (furniture, equipment, supplies) for my in-home studio? I should note that I am a business, but far from profitable. Thanks!

bbaker11

Congratulations on your new line of work! As a self employed individual, you would be required to file a Federal return if your net earnings (total of all income for the year minus expenses) is $400. or more. Self-employed individuals can be entitled to claim certain expenses related to their business, including a home office deduction. Please see the following links for more information:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-guide-to-self-employment-taxes/L8RSXVAWZ?srsltid=AfmBOorcZpk_E5PR_wfxlrEUXBuWJJZU9qhRYztdCj7uEO-KcMP0DoV9

and

https://turbotax.intuit.com/tax-tips/small-business-taxes/the-home-office-deduction/L1RZyYxzv?srsltid=AfmBOopLrVYa8h35D_w5ua66YkllPzy4WLhFFzvkQql-3UegmkO3vE3U

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