Etsy + Print On Demand Taxes For Beginners

In this video we will go over what to expect for your taxes when selling with Print On Demand on Etsy!
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[@CassiyJohnson]

SCAMMER ALERT: I have some scammers pretending to be me and asking people to message them on WhatsApp, this is not me and please do not message them! I do not have my course released yet and do not currently have any mentorship available. Stay safe

[@charlenelynch6505]

They're relentless 😂

[@user-bh3ew6ii4g]

This is great news for me about Etsy handling and paying the sales tax! This is why I haven't used Printify or Printful and was just sticking with RedBubble, etc. But I love Etsy and would really love to use their marketplace. But when you say, "Etsy handles most of the sales tax" what are the exceptions? I'm paying US taxes, for reference.

[@CimyNorway]

Simple and Straight to the point! Thank You!

[@Dahlface77]

Nice video! I’m a tax preparer/enrolled agent of 17 years. You did pretty good with this video. But most importantly you stressed several times to talk to whoever is doing your taxes. Thank you for that! I don’t 100% agree with everything totally but a good portion of it was very well thought out and very nice information and advice!

[@Carrie_AM]

I would be so interested to hear what you would add to this conversation. Any specific things you would like to impart to new Etsy Sellers when it comes taxes?

[@TVGuy729]

Good info Cassiy! We were inspired by your videos, & started our Etsy store in late January 2023. We went ahead & bought your income/expense google doc. This is a tremendous help that keeps things organized, esp for tax time. We are in Michigan & holding back approx 24% in a separate account so we are prepared for tax time 2024. I'm happy to report that we're having some early success, & hoping it continues. Thanks for all you do!

[@CassiyJohnson]

Congrats on the early success to my fellow Michiganders

[@kathyd5479]

Good morning Cassiy, this was very helpful, thank you. I look forward to your next video. We'd like to see more of Jack, too! 😺

[@CassiyJohnson]

So glad it was helpful for you, I'll see what I can do about showing Jack more but he is a big old stubborn kitty that does what he wants lol

[@pokerlegend147]

I'm about to give this bussines a shot, ive been learning from youtube videos and im glad i ended up on your channel. At first it seems a lot to take in. But i know i am a smart guy and i learn new things very easiely. Thank you already ❤

[@CassiyJohnson]

So glad you are enjoying the videos! If you are just getting started then I recommend taking my free mini course in the description. This gives you all the beginning steps right in a row to make it less overwhelming! Just focus on the next step in front of you instead of looking too far ahead. Best of luck, you can do this!

[@hannialuna3644]

I’ve been watching all your vids and have done so much research. Thank you for sharing all these tips❤❤

[@CassiyJohnson]

Thanks for watching, Hannia! I hope my videos have been so helpful for you!! ❤️

[@wealthwithathena]

My cats, Moussey, Brandi, and Baby send meows to Jack. Xena and Xander also send their woof-woofs. I bought Cassiy's expense calculator a while back and it really has been helpful. To all those just starting, it took me almost 4 months to make my first sale. However, in less than a month, I've now up to 5. Hang in there - her advice does work. :)

[@CassiyJohnson]

Aww hello back to all your fluffy family members

[@phillipschmidtpottery]

How’s it going now??

[@DaisyandLily]

Can you do an example of one sale on what Etsy takes out other than the Etsy fee. Product cost, shipping + tax total and what Etsy deposits. Something seems off. Thanks!

[@SplendidIdeasWithMaria]

Thank you so much for all this information ❤

[@CassiyJohnson]

You are so welcome, thanks for watching!

[@Avalexcyn]

Hi Cassiy! I’m working on my taxes now but haven’t done a POD business before, so some things are a little confusing on where they go. Here’s a list of items I’m wondering about and where I think they may go. Any feedback would be appreciated! POD invoices- supplies Etsy fees- office expense Samples/promos- advertising ? Graphics/mock-ups- office expense Also, under taxes and licenses, do we add the sales tax even though Etsy handles it for us? My thought is if we do, we also have to included it in the income amount. Otherwise, take it out of the total income and don’t include it on the form. PS- I know you aren’t a CPA, but I figured you’re at least familiar with these things ☺️☺️

[@93ksj]

Wow actually read my mind I needed some insight into this topic

[@NatashaPres]

Love this info, thank you. You’re always spot on and I always look forward to your videos! I noticed your example shirt was $12….are you going to be making a video of how to maneuver around the new printify hikes? I noticed many swift sizes and colors have gone up dramatically

[@CassiyJohnson]

So glad you are enjoying my videos! I just used that number as an example but it's important to remember that everyones prices for cost of goods are going up, not just yours. Don't worry as much about the price as getting everything else right to be offering a great unique design on your product that is currently in demand!

[@nancyfackelman4563]

Thank you so very much Cassiy! You are so very intelligent in your knowledge! I am a new seller and taxes concern me to do well. I listen to all of your u-tube channel and it gets me through the rough times. Thanks a bunch!

[@jerrytarus]

Hi Cassiy. Your journey is an inspiration to me. I have not yet opened an Etsy store (funds issue) but I have been researching a lot for the past 6 months and your videos have been informative, right now I can confidently say that I know how I will scale my shop and make it big within a short time. Good work, keep posting the content, I'll also be joining you here on KZbin and looking to host you in one of my episodes.

[@CassiyJohnson]

Hey Jerry, glad you are doing such good research right now! If you can spare the cost for Canva to design ($12.99/month I think) then I'd recommend getting started now making designs, that way when you are ready, you can hit the ground running! You could also apply to sell shirts on Merch by Amazon, it's print on demand like what I do except Amazon takes care of all the customer service as well. You could start selling there because it's free and you don't have to pay for the inventory at all, they just pay you the money that you make once per month. Ryan Hogue has a lot of great content on how to get started doing this if you are interested. I look forward to seeing your channel one day!

[@jerrytarus]

@@CassiyJohnson I have actually been designing on Canva for the longest time and I have accounts with Redbubble, Merch by Amazon, Zazzle, TeeSpring and Teepublic. They're great sites and Canva has been of great help to me in creating my designs. Ps...I do graphic design for passion, part time though...thanks for your input.

[@carolamoore72]

Hi Cassiy! If I make $10,000 in revenue in my Etsy business, what comes out of that and what do I have to pay from my personal bank account! Thank you for your help!

[@carolamoore72]

Hi Cassiy! I have started my Etsy business, and I am so excited. My question is, how do I let people know about my shop without actually giving it away. Also, can you explain the right sizes that I need to design my shirts and for the mock-ups. I have seen 2000/2000, 5000/5000 and 4500/5400. I am confused on which one to use. Please help, Thank you!

[@CassiyJohnson]

Congrats on getting started! For designing my shirts I like to do 4500 x 5100 since I use Monster Digital but 5000 x 5000, or 4500 x 5400 all work fine as well. For mockups, I just make the mockup the size of the image I purchased. So I go into Canva, go to new project, edit photo, select my mockup photo, then edit in design, then add my design on top of it. I think my free mini course would be really helpful or you where you are in the process as it answers lots of beginners questions like this. It's 9 modules long and walks you through your first designs and listings start to finish! Free Etsy Start Up Guide 🔥 www.cassiyjohnson.com/etsypodlaunchguide

[@tammytribble5908]

Do you have a video on filling out sales tax section on Printify? for Etsy store? I really appreciate all the great content!!!

[@vanessastlouis]

Hi Cassiy ! I have been watching your videos and I just register for a LLC. I have a questions about print on demand. Do you have to have a business insurance for any future problems with the product or the print provider? Also when you use the credi card to pay for the orders , do you use your personal credi card or a company credi card? If you already have a video about this could you please share the link? Thank you!

[@jesstfc]

Hi Jack!! 🥰 Thanks Cassiy for all of your help getting started!!

[@markhartman5408]

You hit about everything you might be able to write off. I have been through this before.

[@MegaBoomer55]

Hello. Love all your videos. I am hoping to find an answer to a question I see on KZbin all the time. There are a lot videos on how to change an image to the resolution of 300 DPI on Canva. Most of them suggest using an online convertor. Can you not click create a design and preset the image to be 300 DPI before you start. I would really appreciate any help you could give. Thank you in advance. I am wanting to start some digital listings but I don't want sell bad 😥images.

[@shawnyv1046]

Cassiy, can you do a video on how you promote your tshirts? Like do you just adversities on IG? Do you have a strategic plan?

[@someonejustlikeyou9291]

Hi cassiy, i just started my journey a couple days ago and while learning alot of new stuff it feels a little overwhelming i look forward to your videos to gain more knowledge. I wanted to ask what is the one thing that i should do right now to get sales?

[@CassiyJohnson]

Congrats on getting started! My best advice to you is to focus on metrics in the beginning other than getting sales. Getting sales in the beginning are slower than you want them to be no matter what because you might be know how to everything right yet, have learned how to design or what even in demand niches are selling right now. I'd instead focus your energy on the actions you are taking that will lead you to those sales. Set goals for yourself like 5 listings per day or to get to 100 listings. A lot of this stuff takes time to learn and get good at and that's ok but if you only focus on how many sales you are getting in the beginning instead of measuring your success by how much you are learning and how many new things you are trying, then it's going to feel like you aren't getting anywhere.

[@francisdalumpines173]

Hi Cassiy, I live in Singapore but I would like to link all the bank transaction in Philippines coz I want to pay tax in Philippines.I bought your income and expense google doc. And also some mock up in your other store. Thank you so much for being an inspiration. I am going to make this work and have the motivation to continue.

[@rebekahweatherford4732]

Will your Income and Expense Report work on iPad? Or a computer that doesn’t have Excel?? Will definitely be purchasing if it does 🤞🏻 & thank you for all of your amazing Info 😍 I just opened my shop last month!! 🥳

[@CassiyJohnson]

Yes it should work fine, it is a google sheets document so it will just work in your browser window unless you have excel and open it with that instead! Congrats on getting started

[@JuliHoffman]

Hi Jack! Super helpful video.

[@HollyGolden-hv4jg]

Hi Cassiy, Thank you so much for your informative videos! Do you have a video showing how to use your income and expense report? I started my shop early this year and am now 6 months in and having a difficult time tracking everything, so I downloaded your tracking sheet.

[@user-bh3ew6ii4g]

This is great news for me about Etsy handling and paying the sales tax! This is why I haven't used Printify or Printful and was just sticking with RedBubble, etc. But I love Etsy and would really love to use their marketplace. But when you say, "Etsy handles most of the sales tax" what are the exceptions? I'm paying US taxes, for reference.

[@juliekwong4932]

Hi Cassiy, thank you for another informative video. I just hit my 100 sales mark and I couldn't have done it without all your videos!! Could you do a video on state seller permits? Do I need one and how to do it? I live in Massachusetts. Thank you 😊

[@CassiyJohnson]

So glad you enjoyed the video Julie! I don't need a seller permit where I live so I doubt you need one but you can always check with your CPA or google who needs one in Mass and see if it applies to you but I doubt it!

[@susanzolton6730]

Hello Cassiy. Thank you for all the valuable free content you provide. Would this Income and Expense sheet work for stores other than Etsy such as RedBubble, Shopify, etc? Tnanks

[@CassiyJohnson]

Yes this should apply to anything you are doing, you would just need to change the name of the expenses on all 13 pages to match what platform you are selling on!

[@susanzolton6730]

@@CassiyJohnson thank you so much for such a quick reply. I know your business will continue to expand because of the compassion you show others. Will you eventually be doing videos about platforms other than Etsy? Best of luck to you!

[@carolinafajardo5006]

Hello! I loved your video and I would like to ask you something Do you have a reliable accountant you can refer?

[@CheysSchrooms]

My biggest question is, would I need a business license for this? Or does that depend on each state?

[@SusanSullivanSumy]

Hi Cassiy, I just started my Etsy store a few weeks ago. I love your videos. I've only sold 35 shirts with Monster Digital and I've had bad luck. Almost half of them have had complaints because of crooked printing, low ink on half the shirt, etc. Is this the norm for print on demand? The ones that print well seem to look really great, but I'm getting disheartened. 1) how do you deal with bad prints, and 2) how do you deal with customer complaints?

[@lowellirish]

Gee, I'd wish she'd answer you!

[@LuKaa316]

Just replace the items. Printify will replace them for free just send them the pictures. Also, check the quality of your PNG file. It should be 300 dpi.

[@Jen.E]

She might suggest using a different company to print them.

[@nataliaguevara9647]

She has actually answered this question several times on previous videos.

[@britiabradshaw3878]

Hey Cassiy, I was curious do you calculate cost of goods sold or just include those in your expenses? Thanks!

[@CassiyJohnson]

No I don't calculate cogs for my print on demand biz, I don't think it's really necessary!

[@ViewItYouTube]

@@CassiyJohnson Would'nt you need to include cogs for your expenses. I might just be confusing myself.

[@jday678]

Thank you!!! Very helpful

[@CassiyJohnson]

Thanks for watching and commenting, happy to help!

[@payalprakash6967]

I am just curious as i don't know about LLC. Is it better to use an LLC for Etsy? Can you convert your individual seller account to an LLC? Can you use same LLC for different platforms like Amazon and Etsy etc?

[@myjourneyxl]

Hi Cassiy, appreciate you a lot for the time you put in to provide us a lot of details. Question. Does Etsy favor shops who offer shipping worldwide vs shipping only in the US? I figured to only offer domestic shipping in the US because I dont think many people from outside the US will buy my products because of the expensive shipping + longer shipping time, which in turn will drive my algorithm low, because of the low conversion rate of the potential buyers outside the US. What's your take on this? Thanks a lot!

[@kaleyjanenigh]

Curious to know Cassiy's take on this, as well!

[@sarahfessler1681]

Hi Cassiy! I am also inspired by your vids, they are very helpful! However, I’m still confused about sales tax. Once I make a sale, Etsy charges the customer sales tax and then when I place the order in Printify, I am charged sales tax correct? Do you have a resale certificate to avoid paying sales tax from Printify? I hope this makes sense..

[@scottbarrera9517]

Hi Sarah, you need to get a resale certificate. The item is being double taxed.

[@janine11112]

Hi Cassiy, in addition to providing the spreadsheet to the CPA, do they also ask for copies of your monthly bank statements or the CSV files from Etsy?

[@CassiyJohnson]

I have just provided my spreadsheet and let them know the information personally but every CPA is different. Probably depends on if you are also paying them to run your books or if you are just paying them to file your taxes.

[@wephotogal]

Thank you for such a helpful video, Cassiy. So, along with my expenses, I go ahead and only include my profit, correct? I wondered about this because Etsy reports what the buyer actually pays ME not taking into account what I pay my POD supplier.

[@CassiyJohnson]

You want to get your total Revenue From Etsy and then minus all your expenses. Then yes you just pay taxes on your total profits leftover!

[@wephotogal]

@@CassiyJohnson Great! So helpful, thank you!

[@BohmanderTCG]

So Etsy takes Salextax when someone is buying a product and gives the saletax to the government in which country the buyer is. Do I get the paid VAT back on Printify? my producer is in Germany... Do i have to register in germany? or in my own country Belgium? to get the vat back?

[@oliviaskye8920]

Hi Cassiy, I am based in the EU, but focusing on the US market with Printify. I will speak to a tax lawyer for the nitty gritty. But Etsy doesn't have an option to just change bank accounts so when I get a new account, ill have to restart my Etsy store from scratch. I also have to list everything in euros right now and calculate the currency exchange to make sure costings are correct especially since Printify is in USD. Please could I ask, what are your thoughts on this? Would you wait to avoid starting a store from scratch, even though it might be a few months or would you start anyway? I hope I've explained this well enough... Just looking for some advice from that perspective, not taxes. TY x

[@ArtOFHardstyle]

Hey. Im in the same situation as you. I live in the eu and want to start sell in the us. Did you already gain some knowledge about the taxes? Can you help me with it?

[@ROMEKBNY]

Does Printiful/printify send you anything at the end of the year?

[@Obsessed.with.success]

Hey cassiy great video! But I’m worried about the copyright on print on demand? If I use Canva for a design how does the copyright work?

[@wenjingjiang8388]

What if I have never recieved the 1099-k form from Etsy, then what should I do?

[@CassiyJohnson]

If you didn’t get one then you may not have made enough to have to claim the income! I would check out some articles that Etsy has about 1099’s or reach out to them to see why. Or you may just need to go under the finance tab in Etsy to tax documents and scroll to the bottom to download it!

[@jessamynbryce7958]

Thank you!

[@CassiyJohnson]

Thank you for watching and commenting!

[@oceanmusic918]

Dear how to calculate the mug price ? Etsy taking from us plus listing fee 2,28 Processing fee 99 cent Transaction 94 cent Tax 85 cent And printful charging for the mug 8.24 $ 4,49 shipping 2.48 tax this become almost 20$ this it’s normal ??and stile didn’t put my profit so how das pepole selling on 14 our 10 $ mug ??

[@vilnislesvincuns9085]

Same question ⁉️

[@FransceneJK98]

Why do I write off what I paid on printify if the customer pays for it on Etsy and printify picks up on this order automatically if it’s linked? The only thing I’d pay is the monthly membership if for Etsy and printify that I write off

[@teddyeaulympe1279]

Hello Cassiy, I'am building several Etsy stores. Is it a good idea to link them all together by writing all the URL stores in the bios or the product pages?

[@charlenelynch6505]

Several? Why all the extra work? Stick to one. Is your first one extremely successful that you're duplicating your initial idea that brought you between 20% to 30% profit margin?? If not... dont open several.. do one.

[@teddyeaulympe1279]

@@charlenelynch6505 thank you for your advice, now i think you’re right

[@charlenelynch6505]

@@teddyeaulympe1279 ❤ best of luck!!

[@ElvisJnr74]

Hi Caasiy. Does this apply to everyone who's starting a business on etsy or is it aimed at people who have a full time buisness? Thank you.

[@CassiyJohnson]

This would apply to everyone!

[@ElvisJnr74]

@@CassiyJohnson Thank you

[@karlaqd]

Hi Cassiy, Is this video for LLC? or can business write offs be done as individual?

[@dianaapodaca2291]

Hi Cassiy, I have watched your videos and i am going to start selling on printify I already got my sellers permit, do i need a reseller permit I called the city and was told i needed it. can you please advise. thank you

[@TheHedgehogCompany]

Hey Cassiy, I'm hopeful you have information that we little guys don't yet have. It appears that the SVB bank failure has affected Etsy payments. Do you know anything about when the payments will be made in lieu of the current inability to make payments due from etsy to sellers? Naturally the timing hits at the same time the bank card payment is due for my first big sale. Anxious about being out over $1000 this early in my journey. Any news? Laurie

[@namethischannel]

Hi Cassiy thanks for your videos. This isn't a question about tax. I'm wondering if you know if you can use an affiliate link directing customers to an external website (canva) in your etsy customer thankyou email? I have looked this up but can't find a straight answer.

[@StygianStyle]

So I assume you're talking about sole proprietor filing and not LLC or S-Corp

[@twinkle5569]

Hi Cassiy, I really appreciate your content, thanks a lot for your valuable information, I would like to request a video explaining Sales tax, I have recently opened my shop on Etsy connecting Printify and received my 1st order but for this order, I ended up paying sales tax twice once in Etsy and once in printify, can you please help me out with this, Thanks :)

[@CassiyJohnson]

As long as your printify account and etsy accounts are connected and the order comes in automatically, you shouldn’t be double paying the sales tax. I’d reach out to Prinitfy to make sure you have it set up correctly!

[@twinkle5569]

@@CassiyJohnson Thanks Cassiy for the clarification, I will look further into it :)

[@a59028]

Do you know if Printful charges duties to ship products to Canada and Canadian customers ?

[@jibonitihasgolpo3367]

Hi cassiy! Sweatshirt will be for summmer season too?

[@DavidPaul-kg7rv]

I think sweatshirt for summer isn't a good idea. Instead of investing on sweatshirts, you can sell shirts, tank top, shorts, dresses... :) It looks like more feasible :))

[@emilyhosch8820]

I want to start international, but idk how to deal with the return laws that come with selling internationally since I use a drop shipping company and they don’t accept returns. How do I get around this, or is there just no way? Thanks!!

[@SarahBlotevogel]

do you have an LLC for your Etsy business?

[@angkorbackroad]

Could you advise as there is a message saying Etsy is implementing enhanced verification to ensure security, as a result, sales in your stores have been temporarily suspended until the verification process is completed. To restore the operation of your store and receive the order please follow the instructions, and we need to scan the QA code with our phone to reconfirm our bank account. Thank you for your helping. KIM

[@CassiyJohnson]

Sounds like it could be a scam! Anything directly from Etsy will be in the “from Etsy” section in the inbox and will have a highlighted badge confirming it’s from Etsy. If the message is in your regular inbox then it’s for sure spam!

[@angkorbackroad]

@@CassiyJohnson Thank you CASSIY, I used to follow the instructions, a few times, but it's happening to me quite often, I am very worried now about destroying my store, and my bank too, any advice to help me out, please. KIM, CAMBODIA

[@angkorbackroad]

@@CassiyJohnson Anyway in the message there is a logo of Etsy .

[@CassiyJohnson]

@@angkorbackroad Even if there is an Etsy logo, they could just be saving that and using it as their logo mark. Anything from Etsy will for sure only be in the "from Etsy" section of your inbox, not the regular inbox. So just mark anything else as spam and NEVER click any links in your messages and you'll be fine

[@sajjadhussain-jy3hz]

best video

[@SunriseReviews]

What do you call your job? On taxes job title.

[@Om-gg5tk]

Loved this video,Cassiy! How many listing does it normally take to start generating full-time income on Etsy?Going into 2023, I feel being successful on Etsy will be purely a numbers game( quantity + quality) and superior digital marketing skills with the amount of sellers joining every month in practically the same niches and using the same research tools(erank,everbee,sales samurai etc.) so I am curious to know your thoughts on this, thanks.

[@britleighadams8834]

Is the expense sheet created in Excel only?

[@CassiyJohnson]

No sorry this is only in Google Sheets!

[@mpdesignweb4032]

hi Jack , 💯👏

[@CurrentconversationTV]

Unrelated but I want to draw my own digital jeep and out it on a shirt....can I do that without using the name jeep?

[@CassiyJohnson]

No you can't, the shape of the headlights/front of a jeep are trademarked wether you draw them or not. They come after people hard on Etsy, it's better just not to try and skirt around the rules. Trust me there are tons of safe niches to sell in still!

[@CurrentconversationTV]

Ok thanks

[@CurrentconversationTV]

Sorry, 1 more question...is it better to make 1 listing with multiple colors for one design or put each color in its own listing?

[@reneebertinotsarah5636]

How do i see all the fees I am paying on Prinify?

[@Surfacing111]

Hi, i want to sell on etsy to US citizens and use print on demand company located in USA. But i personaly live in europe. Will i need to fill this form?

[@Surfacing111]

Btw im not US citizen

[@babywipes2416]

Does this info apply to norwegians too? Or is taxes somewhat the same... these things are the reason i dont want to sell online... and i have over 1000 products in total... thinking of taking everything down soon before i get too many sales...

[@moonxshakti]

No, she is talking about U.S. income taxes. You would need to find out about any possible taxes for both countries. You may owe some tax for selling in or through U.S. companies, and you may owe taxes in your own company. As she said, this is only some basics. You would definitely need to talk to a CPA or tax person that is knowledgeable for your area.

[@moonxshakti]

P.s. you've already started, so your next step is to learn more

[@karenduey9675]

I’m a new seller with only 10 sales. I just got a message from Etsy saying they are holding my funds. Why would they do that?

[@kaleyjanenigh]

They do that for all new sellers for 90 days. You need to pay your POD provider out of pocket until Etsy frees your account up.

[@karenduey9675]

@@kaleyjanenigh thank you

[@jmariehill9832]

That sucks

[@stotimislisotome830]

Whats your ETSY Shop name? I asked this question in your other videos, but it seems to me, you dont pay attention on this, but on all other question you do. Are you real and is your shop real? Why you are hiding the name of your shop that much?

[@CassiyJohnson]

Hey sorry I don’t share my shop name on my channel because that’s how I make money for my family. I hope you understand but if I had 60k people go look at my store it would hurt my conversion rates and lots of people might take too much inspiration from my ideas. I hope you get value from my free videos though!

[@MegaBoomer55]

I should have said 3600 X 3600 pixels.

[@BrahimBrahim-rt1pj]

Hello, thank you for this good content. I want to contact you. How can I do that, please?

[@sheilathompkins8844]

Thank you 😊