Do I have to file taxes on casual art sales?

Forum|Forum|7 years ago
May 31, 2019
2 replies
0 views

I have a full time job which is the main source of my income but I also do make some money throughout the year selling my artwork, paintings, pottery, etc. online and locally, but don't consider it self-employment and don't really have records of a lot of the sales. Do I file taxes for that income and, if so, how?

TurboTax Free Edition Online

Best answer by GaryH

It sounds like you are treating your art sales as a hobby and not a business. It is important to note that all income, unless specifically excluded by the Code, is taxable. Your art sales are required to be reported as Other Income, which will appear on line 21, of page 1 of the Form 1040. You will need to recap your sales records to report your art sales for 2013. Going forward into this year, you should keep track of all sales made (date and amount). As a hobby, you can deduct any hobby expenses as a miscellaneous deduction on Schedule A (to the extent of hobby income). If you take the standard deduction and do not itemize, you still need to report the art sales as other income.

If you have additional questions, make a comment here (do not start a new question) and we will continue to help you.

Thanks for using TurboTax!

G

GaryHAnswer

Employee

It sounds like you are treating your art sales as a hobby and not a business. It is important to note that all income, unless specifically excluded by the Code, is taxable. Your art sales are required to be reported as Other Income, which will appear on line 21, of page 1 of the Form 1040. You will need to recap your sales records to report your art sales for 2013. Going forward into this year, you should keep track of all sales made (date and amount). As a hobby, you can deduct any hobby expenses as a miscellaneous deduction on Schedule A (to the extent of hobby income). If you take the standard deduction and do not itemize, you still need to report the art sales as other income.

If you have additional questions, make a comment here (do not start a new question) and we will continue to help you.

Thanks for using TurboTax!

D

ddfoxx29

Employee

Hi, I have a similar situation to sduyer: I earn my income through being a health professional, but I started a photography business this past year. Have registered the business with the state and have an EIN #. I show my work a lot, have a lot of art expenses, but haven't made much profit. Occasionally I'll sell something, but I don't support myself through artwork yet. I'm planning to list 2 separate business: the photo business and the health professional business. is this the right approach? thanks, denise

F

Flyhigh13

Same.

I just started running an online paint party business. My question is do i charge taxes? Also, if i make say $10,000 for the year how much would i pay in taxes?

D

DianeW777

Any income received for services or goods is taxable. You have to decide if it's a hobby or a business for tax purposes. Review this page from IRS:

Business or Hobby?

Key elements:

A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
A business allows you to deduct the costs necessary to obtain the income. The law explains that 'you must be engaged in the activity to produce a profit'. The test under IRS is that you must show a profit three out of every five consecutive year.
- Deducting Business Expenses

The amount of tax depends on the decision.

Hobby income will be taxed at your tax rate once all income on the tax return is combined and reduced by deductions and filing status.
Business net profits are the same with an added self-employment tax which is the equivalent of social security and medicare taxes paid as an employee. A self employed individual pays both the employer and employee portions towards their own social security account.
- Marginal Tax Rates 2020
- Self-employment Tax

[Edited: 02/11/2021 | 5:11 PST]

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"