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Old 04-13-2015, 02:49 PM
 
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Hello all,

Does anyone on this forum have (or had) tried to sell things on Etsy? I specifically want to know if Etsy takes care of the taxes for the seller. For ex, I plan to sell hand-made candles, how will I pay sales taxes to the state where I live or how does it work? I read the manual on Etsy and it says nothing about taxes. Is it a tax-free website? Please let me know since I do not want the IRS to come knocking. Thx
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Old 04-14-2015, 07:10 AM
 
Location: The Southern Sac's, NM
1,872 posts, read 3,402,415 times
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I sell on Etsy.
They do not take care of taxes for the seller.

There are different tax rules for every state, so you would have to research your own state to see what they want.
For now, my advice is to keep track of every sale, and every in-state sale. Also keep track of any expenses, like Etsy fees, shipping costs, packing materials. In short: everything you paid out related to your business, and everything you took in related to your business. Google "Schedule C" to find out what you need to keep track of.

Then when tax time rolls around again, you will be prepared, and not scrambling for information.
Tax software like Turbo Tax and HRBlock both have modules set up for online sellers, when you get to that point.

There are online sites that help you keep track of all this, one of them is Outright by GoDaddy. But there is a subscription fee of course.

Hope this helps
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Old 04-15-2015, 12:46 AM
 
33,016 posts, read 27,388,296 times
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Sales taxes are relevant to you only for sales to customers in your state. You will have to get a sales tax ID number from your state, google "sales tax" + (your state) and you'll find the department to contact. How often you have to report and pay the taxes usually depends on how much you collect. Since you would collect sales tax only on in-state sales, there won't be a lot of tax collected in the beginning, I'm guessing you would probably pay quarterly.
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Old 04-16-2015, 03:12 PM
 
560 posts, read 1,546,827 times
Reputation: 595
Quote:
Originally Posted by NMNan View Post
I sell on Etsy.
They do not take care of taxes for the seller.

There are different tax rules for every state, so you would have to research your own state to see what they want.
For now, my advice is to keep track of every sale, and every in-state sale. Also keep track of any expenses, like Etsy fees, shipping costs, packing materials. In short: everything you paid out related to your business, and everything you took in related to your business. Google "Schedule C" to find out what you need to keep track of.

Then when tax time rolls around again, you will be prepared, and not scrambling for information.
Tax software like Turbo Tax and HRBlock both have modules set up for online sellers, when you get to that point.

There are online sites that help you keep track of all this, one of them is Outright by GoDaddy. But there is a subscription fee of course.

Hope this helps


Thank you and thank you to Freemkt too! You've both been helpful. I suspected like both of you that I only have to worry about taxes for my state only but it always helps to track everything. Again, thanks to both of you!
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