If you sell on Etsy or accept payments through PayPal, you’ve probably heard scary talk about the 1099-K. The rules have changed — and not always in the way the internet makes it sound. This post breaks down what the 1099-K really is, when you’ll receive one, how state rules can differ, and what handmade business owners actually need to pay attention to at tax time (without panicking).
Confused about what actually counts as a business expense in your handmade business?
The IRS says expenses must be ordinary, necessary, and reasonable — but what does that really mean for makers who buy yarn, tools, and supplies all year long? In this post, we break it down in plain English with real handmade-business examples, so you can make confident expense decisions (and stop second-guessing every receipt at tax time).
Are you a handmade seller wondering if the IRS sees you as a hobby or a real business? This post breaks down how the IRS decides — and why your intent, records, and bookkeeping habits matter more than you think.
Tax time doesn’t have to send you into panic mode. If your handmade business bookkeeping feels like a mess, this post walks you through how to clean it up enough to breathe, get organized, and move forward with confidence — without aiming for perfection.
Ever stare at your Schedule C and think, “WHAT does the IRS even want from me?!”
Here’s the truth: they don’t want anything you don’t already have. Learn what the IRS actually expects from handmade business owners — and why organized bookkeeping is the key to stress-free taxes.
Tax season doesn’t have to feel scary or overwhelming. This start-here guide walks handmade business owners through what the IRS actually wants, how to clean up bookkeeping before tax time, and which posts to read first—without panic, shame, or jargon.
Confused about when inventory and Cost of Goods Sold actually affect your taxes? This post breaks down when inventory becomes COGS, why your profit can feel “off,” and how it all shows up on your Schedule C—without accounting jargon or panic.
This post was originally written & published 1/27/2020 and has been updated.
COGS doesn’t have to feel like a mystery novel. Here’s how to calculate cost of goods sold for one handmade item using a crochet amigurumi witch—materials, selling fees, and the bookkeeping flow. PLUS there’s a video showing how this is done using the 10-Minute Bookkeeper system including the Handmade Product Pricing & COGS Calculator. Part 7 of the Inventory + COGS for Handmade Businesses series.
