HOW I DO MY ETSY TAXES: Beginners Guide! What is Tax Deductible? Home Business

Follow me on Instagram:
/ angelajasminaa
My Websites:
AJ BLANKS (blank shirts for embroidery/vinyl): ajblanks.com
KCD (ribbon, embroidery vinyl & fabric): kidscustomdesigns.com
Angela Jasmina Merch Shirts (Shirts seen in this video): angelajasmina.com
----------------------------------------------------------
Embrilliance Embroidery Software: www.embrilliance.com/jamaffil...
Heat Transfer Vinyl & Glitter Heat Transfer Vinyl: shareasale.com/r.cfm?b=161403...
Join my Embroidery Help Facebook Group: / 184581145655468
LIST TO THE ITEMS I USE IN MY VIDEOS:
www.amazon.com/shop/angelajas...
If you are interested in a MELCO EMT16X embroidery machine please call or email Todd! He is super nice and not a pushy salesmen AT ALL! He will answer any questions you may have! Please let him know you were referred by me as you will get a great deal and I get a credit for it! A WIN WIN FOR US BOTH! [phone] [e-mail] Thank you :)
To donate to my coffee addiction ☕️:
CashApp $AngelaPotter19
PAYPAL: www.paypal.com/paypalme/Suppo...
Email: [e-mail]
our Mailing Address:
Angela Potter
8480 Baltimore National Pike
Suite 3210 #286
Ellicott City MD 21043
FULL DISCLAIMER: I make a small commission on my amazon affiliate links

[@debbiedempsky8160]

One other thing to keep in mind when running your own business is that you have to pay self employment tax as well. When you have a normal job, you pay Social Security and your employer also pays Social Security taxes for you. When you are self employed, you pay the employee part as well as the employer part on the front of your 1040. Also, if you have a mortgage and choose to write-up a part of your house as a business expense, that means that your business owns a portion of your home. Let's say you are writing off 20% of your mortgage, utilities, maintenance, etc for your business, and 10 years down the road you sell your house 20% of your profit on the home becomes immediately taxable as business income. You cannot roll that portion of the equity into your next home. I definitely recommend making an appointment with a CPA that can give you good advice for how to handle your expenses for a home office. I'm a CPA and had a home business for many years doing Income Taxes.

[@jewelbrown1781]

This is good information. We will be building a home within the next year and will sale this one so that is great advice.

[@deleted9885]

WOWOWO

[@anaflores484]

Such good information.. does this also work when u rent?

[@debbiedempsky8160]

@@anaflores484 Yes. In order to write off a portion of your rent, you MUST have a work space that is exclusively used for your business. It can't be the kitchen table that gets cleared off for dinner regularly. If you have a 1,000 sq ft apartment and have a 100 sq ft room dedicated 24/7 as your home business space, you can write off 10% of your rent and utilities as business expense. I would suggest meeting with a local CPA that does bookkeeping and taxes for small businesses because they would know far more than i do.

[@sewsassystyle]

Thank you! I'm kicking myself for all the receipts I haven't saved but thank you for all the great suggestions and info here!

[@ceciliagarcia6453]

Girl!!! You are a blessing, thank you for sharing all this information ❤️

[@latoisullen]

I was terrified about this TAX season because I had NO idea where to start. All I have set up is quickbook and that was all I had but this gave me a huge relive. Thank you!

[@AngelaJasmina]

Glad it was helpful!

[@natashadiaz5791]

Thank you so much for making this video and sharing this information! ❤️ You have no idea how much this has helped!

[@nikitam9777]

Thank you for this video! I actually like sewing small bags to hold makeup, beauty products, etc and would love to start a business eventually.

[@eholmes2011]

Excellent video and VERY important information to know especially for new etsy sellers. Thank you.

[@PixieMagicCo]

Can you make more videos on making items. Also maybe a video on where you got all your supplies in detail. I absolutely love your videos, I get excited whenever my notification pops up! 😊

[@TenJ59]

Thank u Angela for better understanding of running your own business from home

[@patriciaalva1851]

This is some GREAT information. I’m a widow and want to do my small business from home but I’ve been sssssooooo scare because I need to support my 3 teenagers You are awesome Angela Your little Riley is so cute God bless you for sharing your information 💞💕💞

[@jewelbrown1781]

This is great information, thank you for taking the time out to make it.

[@Claire.SageGreenCreative]

Your cohost is too cute for words! Thanks for video hope you and your fam are well 💚

[@TaelorMadeCreations]

This is great information for us business owners. Love your videos

[@sewshemadeit333]

Thank you so much for the useful information... you’re my inspiration ❤️

[@lyndahargis2495]

Thank you Angela! This is so helpful!🙏

[@annicks7385]

Business lunches , gas and toll was removed from deductions for at least a year now . I advise you to keep up with the updates on what’s deductible because small business took a big hit with the changes made within the department of finance.

[@SimoneRussell-zq8ig]

your daughter is so funny and adorable y'all are twins!! thank you for this video

[@robinbryant9783]

Really great information! Hey Miss Riley. Tfs

[@emileapitts1095]

THANK YOU FOR THIS!!!

[@roxstix]

One of the very few bright sides of this Covid-19 situation is IRS most likely will not audit you until the public can finally socialize. Before the pandemic, tax deductions & write-offs are red flags for the IRS, especially if you plan to deduct real estate (your home office). So, keep every single receipt, ledger, calendar... (I was audited the first year of doing commission work and the IRS is not on your side).

[@BobbiesCreationsandMore]

Great information. If you live in the U.S.. You do have to pay taxes if you make over $400.00 per year.I did get this information from our tax accountant. Just a little extra information for everyone! TFS

[@inesaerdal3969]

What if you live abroad and aren't a US citizen? do you still have to report taxes when selling on Etsy

[@estebanvarela9746]

Is it $400 in profits or $400 in sales? so is it after i deduct all my expenses or is it straight sales?

[@southkonasilver]

@@leezaleisner5950 really ? Can you tell more info on this

[@bacj3896]

@@southkonasilver it's based on your net earnings: so your revenues - all your related expenses for that year/what expenses are related in producing the products you sold. You report your business income/expenses on schedule C of your 1040

[@the_lovely_drawing8514]

this is so great! please make a new video for the 1099-K updates coming at the end of this year!

[@Cutest5x]

Thank you so much for this video

[@veronicadalilabarboza7889]

Love your videos !!

[@AngelaJasmina]

THANK YOU!!

[@mralban8890]

Very informative thank you. Gracias.

[@hsepulveda1]

She is also adorable!!

[@Yazzie101]

Brilliant.. thank you!

[@209design]

Great info 🔥

[@cenaidarodriguez8070]

Hi can you please tell me what you have to cut ur vinyl I’m looking at a Cricut explore air 2 and can I do my iron vinyl with an iron since I don’t have a heat press

[@CachisCustoms]

Helpful video!! So should we still get quick books if we barely started Etsy ??

[@babykaylee269]

10 months later im back for an answer lol

[@cpace123]

So where do you put your shirts in quick books etsy. In materials and supplies? Or something else?

[@Nicole-ol5ee]

If I get quick books now will it still have all the info from previous sales? Or does it just start from then on? This all confuses me so much😭

[@rachelgraceful359]

Thank you Queen 🙏

[@courtneysmith9843]

I am starting a polymer earring small business through Etsy and this video has been so helpful. What version of quickbooks do you use? There are so many options.

[@inao649]

If you bought something for your business last year ( like a printer) can you still use as tax deductible if you still use it for your business this year? And other products?

[@JasminBeautifulLifestyle]

How to file the bpp :Business Personal Property Tax .I really need advice of how to file the form .

[@zaidarosario2281]

Hi frend, thank you so much for the great information, you are amazing,please tell me where you buy you blanks for adults and sweat shirts like the one you are wearing, thanks God bless you and famly.

[@mspurrple2184]

Riley's laugh is so cute!!!

[@mchavez76]

Do you end up paying a lot and or do you ever get anything back? Does it affect your other taxes ? lol might be stupid questions I’m so new to this

[@mspurrple2184]

@@mchavez76 hey there! You posted your question under my comment so it might not be seen. You might want to copy and paste it as a comment on its own so Angela sees it. 😊

[@antoinetterandle6419]

Thank you Angela. You always give so much info. Antoinette

[@Starrjae]

Thanks 🖤

[@AutisticBeauty]

I don’t have a drivers license so I don’t drive but my husband does. Can I still write off mileage even if it’s not me driving?

[@SterlingsStyle]

Riley you are so stinkin' cute!!! Come to Mama!! :D

[@dawnbutler2081]

Wow thank you.I was going to ask you to do a video on Taxes and quick book.

[@brooke4608]

What if ur doing Etsy as a kid do I have to do all that paperwork taxes stuff

[@valeriet4459]

Good video.. question quickbooks has different packages.. which one do you use??

[@osewhoopy9253]

This is always what has stopped me from purchasing it - there are so many options! Please Help!

[@isabelle5145]

Hi! THANK YOU for this video!! I am about to start my shop in about a week, but I am so confused tax wise and I think I'll be moving in a few months (potentially out of state). Do you know if I start my shop in February 2022 if I have to file taxes this year, or would I next year?

[@Erica-zx2ck]

only for the income earned in 2021

[@miladysanchez2817]

Thank you so much. But what is I don't have the receipt of everything 😕

[@anamoise224]

Hi should I open a Quick book in Etsy or should I open it somewhere else ??

[@EJSVARZ]

Can u please talk about business permits ?

[@maryannes6426]

Yes!!! Please some info on permits

[@gabbysoto04]

Dis you had to file a DBA first with your local county and also file with the IRS FEIN???

[@handmade.by.hannah]

"I'm getting really sick..." *posted February 2020* :O lol

[@dvenezue1a]

Riley's fee for modeling your products is tax deductible too. Set her up with a retirement account and deposit what you pay her for modeling into the account.

[@ateamcraftyboutique4930]

Question so if you don’t have a tax number on Etsy they use your SS, that’s considered self employed! I have a tax number so I just went to my tax office and paid the tax on the amount I made for the year, and that’s it. I saved my receipt but they didn’t want them? I’m confused? So is there 2 different ways to run a business? One with a tax number, and the other with just your SS as self employed?

[@shellyfitts-oliver7262]

A-Team Crafty Boutique you should be. They should have used your receipts to do your tax return. They are lazy and you shouldn’t go back there. They did not do there job. You should have someone else check out your return.

[@zuleimamiranda1272]

Helpful information. Thank you. Pls do my taxes, lol

[@noneofyourbusiness731]

This is the very first video I came across after Etsy threatened to shut my shop down if I don't pay my taxes. I did sign up for intuit/ quickbooks, I was able to link all my accounts for my deductions but for some reason I'm not able to add my American express debit. Does anyone knows why this is? Another question is..will intuit file my taxes for me or do I have to sign up for TurboTax?

[@maryannes6426]

do you need a sellers permit And/or business license to sell on Etsy?

[@madelinescreations7955]

What if you already have equipment and materials before you start your business can you still deduct for taxes

[@heartgirl1980]

Do you have to make a certain number of sales before filing taxes? We tried to write off stuff but HR Block told us it all had to equal $24000?

[@dyspraxiamom9089]

I'm gonna guess you're married? The standard deduction amount went up with TCJA and is $12,000 per person or $24,000 per married couple. This is double what it had been. So doing itemized deduction is no longer beneficial to most. (You can pick either itemized deductions or standard deduction, not both). Now that is information for filing income taxes. An Etsy store owner would file taxes as a sole proprietor where profits are your income. So take your business earnings- business expenses=income to file taxes on. Which you would then used itemized deductions if its over $24k or the standard deduction. However you need to take business expenses out before filing the $ as your income amount. In the finance world HR Block are notorious for ripping people off.

[@MagnetMagicGirl]

Do the Etsy fees count as tax deductible items?

[@cristinashepard]

Basically, the government squeezes as much from you so you don't get any profit. If you have to pay taxes on 5 bucks profit and your pair of scissors cost $20 and you bought it 3 years ago you are screwed. This is ridiculous....But again, great info Angela. Thanks!

[@ewnessa]

What about Sales tax and how you take care of that?

[@leannphan4402]

if you don't make any profit, do you still have to report it?

[@lamisghoualmi7720]

Do we need the receipt for everything? I lost all my Walmart, dollar tree, hobby loby receipts .:(

[@eriksmovies244]

That’s what I’m wondering. I didn’t know at the time that I needed to keep the receipts.

[@janicereeser1965]

Can you deduct your hours you put into KZbin to promote your Etsy business and use it as an advertising expence?

[@AngelaJasmina]

Nope I wish!

[@veronicadalilabarboza7889]

I NEED coffee to run my business. Can I add that ? Jk I wish Great video! Thanks so much I didn’t think quickbooks was that easy

[@AngelaJasmina]

Bahahaha I WISHHHHH

[@marktorres3852]

8:56 Whoa, I gotta get me some pet ducks then!

[@DragonsGaura]

How do you do the deductible on the taxes?

[@mandysmith3861]

Angela thank you for the info! Within the past year I’ve been trying to figure out what all I needed for a business license and hope to get it here soon! One thing I’ve been confused on is when you order something like shirts I can’t remember the site you order from you have to have a business license , do you pay taxes on those items, or do you have to use your tax ID number to be able to use toward your taxes!

[@mandysmith3861]

I hope that makes sense! 🤦🏻‍♀️

[@giselabahena1526]

I cant remeber what site she said bit I do remeber she said something about not needing a tax I'd and anyone could just order ..let me see if I can go back in history cause I just watched that episode last night

[@mandysmith3861]

Gisela Bahena I know arb you don’t but there’s another site that starts with a k I believe that you do! I guess you don’t have to have the tax ID to be able to use it toward your taxes though! I’ve been trying to figure things out because I will be getting my business lic here soon but over time I’ve got some conflicting info from different peoplep

[@Elif-ph2jg]

does this apply for sellers from Europe too?

[@venturesfeed3289]

Is this applied for Turkey too? If not how it is work with the 18% and 20% taxes in Turkey. If you find the answer please don’t hesitate to share. Thank you

[@myriamnorgaisse7608]

You can use your daughter as your model for your business and claim her on your tax too

[@miracleguerrero4522]

Hi!

[@christ14us]

Not sure if you would know this. I run a small tumbler business on Etsy and buy most of my designs from Etsy is that tax deductible?

[@BubbleGum-ef9bh]

Hello. I have big problem - Shop may be suspended - I have 3 shops. I'm self employee - Legally registered in My country. Etsy says - Individual or sole proprietorship Most sellers on Etsy fall into this category. (A sole proprietor is considered an individual.) Or this one- Incorporated business A registered legal entity Please help. Best regards, Elvis

[@Cooking_Through_Time]

I thought like the computer, software, cameras, Cricut, embroidery machines things like that r tax deductible like u can take so much each year for a number of years? Or that’s what I thought my husband said with his computers that he uses for his business? Just asking

[@AngelaJasmina]

Just in the year you bought them

[@Cooking_Through_Time]

Angela Jasmina it may be different depending of what kind of business u own. I’ll have to ask him in the morning lol he’s asleep now. He installs access controls and cameras for businesses. I know when I’ve helped do taxes in past we took percentage off the cost of computer and even drills and equipment he’s used to install the equipment. He could take so much each year. I was a nurse before I retired and if I bought education disc I took the whole price for that year so may be different.

[@Beadgirl931]

For federal they are deductible for 5 or 7 years depending on the depreciation value. You take a percentage each year. If your not then you might need to consult a CPA in your state. One large chunk is against the law.

[@KH-pl4ro]

so this is my first time to report federal tax income, but I honestly don't know which forms I have to use to file for

[@dangzero]

hi i sell stuff on ebay i need to know if i can deduct the sales tax as expense for example if i sold an item for $50 ebay fee is $5 and sales tax is 5$ so is my TOTAL net profit $45 or $40 please any 1 know the answer to this question?

[@AngelaJasmina]

HI! No you can't deduct the sales tax as your customer is the one that should be paying sales tax.. you should just be collecting it and giving it back to your state.

[@amaliadiaconu3724]

Do I really have to file for taxes if I had only made $ 1.171 for the whole year?

[@cjlee2945]

How do u prove u drive ur car to Walmart to get supplies?

[@melaniecrooks6949]

Is there an easy way to keep up with milage?

[@AngelaJasmina]

Quickbooks automatically does it where every time you drive it tracks the miles and asks if it is for business or personal... Only other option would be actually keeping a log of it and writing the miles down everytime you go somewhere

[@DarkMoon267]

Okay but how do you actually pay the taxes? Is it like a monthly bill and you get back income tax or is it a lump sum that you pay at tax time???????????????

[@AngelaJasmina]

You can pay every day if you want... monthly or quarterly. you pay estimated taxes on the IRS website

[@RyanRixSewing]

After this video TAX DEDUCTABLE should be made into merch🤣

[@candyloo8164]

I’m from Canada and I’m having problems verifying my GST ID. I saw that there’s a few people having that issue on Etsy community. Do you know how I can get it verify or keep my shop going without GST ID?

[@MSRWorkshop]

are you paying annually or quarterly?

[@AngelaJasmina]

I pay quarterly!

[@ananita88]

I just did my taxes and they told me I couldn’t include electricity or internet bill because there is no way to prove how much I use for my business.

[@biyankapatel99]

Electricity would be difficult, but you could get a separate internet "line"

[@rosebgarcia82]

Are the machines?

[@puzdawg3547]

I take pictures for my shop on my iPhone, is that tax deductible?

[@HiroKitty]

I don't think so, but i honestly don't know

[@Grizzlyx9]

damn biih IRS finna fucc around and get Zero$ all these damn detuctibles lol💯🤣🤣🤣

[@nataliastoev3784]

Now is on $600 by the way… 2021

[@CHENOTV]

what about money spent on ads and graphic designs

[@AccidentalCarnivore]

It’s deductible

[@solargirl7329]

I feel so stupid for not saving my receipts im freaking out

[@veronicaa6326]

You aren’t the only one 😔 I barely started saving receipts in November

[@thecraftguy21]

How much are you making for your videos on KZbin ? 🤔

[@Pink.Giraffe]

Etsy advertising is tax deductible?

[@vickibrumfield7412]

Are Etsy fees deductible?

[@thecraftguy21]

Too hard 😩

[@paulajohnson420]

OMG, gurl you gotta slow down! Talking too fasssst.

[@doreencrespo7133]

Whoa! Slow down! You talk way too fast! 🤣