What I Learned From My Tax Guy About Filing Taxes As a YouTuber/Etsy Shop Owner/Small Business Owner

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I am NOT a financial expert, accountant, or anything of the sort. I am in no way qualified or certified to give financial advice. However, I am here to share my love of planning and also share what my family is doing to get out of debt and be better with money. If you are looking for financial advice, I would recommend seeking advice from an expert.
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[@ShayBudgets]

By the way, NO, Etsy does not withhold federal taxes. 🥴

[@trishpatterson7152]

Just remember that even if your tax guy doesn’t want the receipts you still need to keep them in case you get audited.

[@ShayBudgets]

Yep

[@coachktasha_]

No disrespect to your tax guy...but I work for my clients and look for ways to help them keep more of their hard earned money. So...the several thousand you owed to IRS...you could redirect that as a Contribution to your retirement account (if you don't have one, set one up)...anyway, you can legally deduct that Retirement contribution and save yourself from having to turn that money over to IRS...all perfectly legal. Great video though!

[@whymett2011]

Yes, I was just going to type that since I am an Accountant that I hope he is suggesting to max out their employer based retirement accounts. Also, she can set up a Sep IRA as business owner and her own solo 401k. Just more options then changing your deductions

[@IAmHisBeloved5]

Ktasha Hardge thank you for sharing this. I will need this once I start my business. Is it true that you have 2 years to file your taxes?

[@ebonithomas1981]

What's your contact info?

[@sherrijohnsongray]

I'm a self employed solo entrepreneur and I've always tracked my business income and expenses in QuickBooks, using this information to send in my federal and state estimated taxes quarterly no matter how much I made. I'm usually pretty close come tax season. This helps me not get so stressed when I do my taxes each year.

[@loriveneris2775]

I was, at one time, an Enrolled Agent for the IRS and they expect a business to be at a loss for the first five years. Many times, if you don't have many expenses or inventory then the business is considered a hobby.

[@moderndayhumans]

Peace - thank you for shedding some light on that. Do you mind me asking how much inventory/expenses is typical to be considered a small biz vs hobby?

[@IAmHisBeloved5]

Lori Veneris thank you for sharing.

[@IAmHisBeloved5]

rainbow great question!

[@t.m.3769]

@@moderndayhumans It's not a matter of how much inventory you keep or expenses you have. It's a matter of making a profit or not. If you're not making a profit that is comparable to other businesses in your industry then your business could be considered a hobby. If that happens you will lose your business deductions. I hope that helps.

[@plannercraving]

I am so happy you explained this since I am looking to also open my own sticker shop. I was going to contact you this weekend, but when I saw this video, I was excited because you did answer a lot of my questions. I came account another way to keep track is quickbooks and it also can link to Etsy to keep track per month. Just if your looking to do that if you want. Thank you so much for this video 🙏🏽 I'm more at ease to know what to expect.

[@carolyn8103]

Sondie Fields I was researching quickbooks as well. I'll do a deeper dive.

[@carolyn8103]

This is very helpful especially the inventory. I didn't know I had to track items ready to sell and items I use to create the products 😒. I just opened etsy shop in March. I'll tackle the inventory this weekend. Thank u

[@glitterngloss13]

I’d love to see more details on you spreadsheet and how you are tracking expenses and sales. Do you have a video on that already.?

[@amandaroinila1455]

I have always done my taxes myself. I have an Etsy shop now this year so hopefully I can still do everything myself. I feel more confident doing it that way.

[@supersarona1]

Girl ! you’re soooo pretty 😻 and your smile 💕💕

[@msqueeneats]

I learned so much from this!!! I also just bought your April Budgeting planner on Etsy for an early birthday present for myself!!! My first time buying from you!! I can't wait to get my planner!!! Hopefully it ships before April 4th

[@carolyn8103]

Right on time. Thanks for sharing. I love your hair style.

[@KrystalKlearIdeas]

Thank you so much for this video! It really helped more than you know! It is very interesting. I never thought about inventory! 👍🏾

[@newyorkgirl6854]

So helpful...the tax stuff can be a little tricky!!!

[@livingmylifefor]

Thank you so much for your time and all the information! I'm wanting to start a handmade Etsy shop , but still working full time job, and I'm trying to get as much information as I can but I am going to start it! I love your budget stickers and will check out your shop! Thanks again on the tax info.

[@fearlesswomeninboldpursuit414]

I want to start mine now but getting all the info before I jump in the water.

[@nikkidee4026]

Your video helped me calm down a lot. I haven't hit the threshold yet and I probably won't unless something spectacular happens lol but I was just freaking out 30 min ago when I realized I need to figure out taxes hahaha Thank you so much for putting your personal stuff out there for us to learn from. Greatly appreciated.

[@Celene77]

Thank you for this info!!!! Ir is something I was not thinking about at all, so now I can plan it all better and be organized. ☺️ God bless you!

[@briank7260]

Hi. As I consider opening an Etsy shop (which mostly I need to get in gear to do it...) I started looking in KZbin for info on the tax angle. So, this just to say thank you for your presentation.

[@poshglampristine4044]

Thank you so much for these great reminders- I've been paying for some years now with the max and over being taken out :(

[@kendraturner7076]

Thank you for all of the information and for sharing all of this. It’s really helpful and informative and extremely appreciated!!❤️

[@candyimage16]

did you also consider the things you did to promote your business? Like using one of your own sticker kits to youtube to "advertise"? That would probably be small amounts, but maybe it would add up over the year possibly.

[@ShayBudgets]

Hmmm. No I did not. I didn’t consider any form of advertising or marketing but that’s definitely worth thinking about for this year!

[@GoodWitchIntuitiveTarot]

Thank you Shay. I’m new on KZbin and do appreciate your help. My question is about Channel donations. How do we file for them, what forms, etc? I’m not sure what to file. The donations were my only source of income this year. Any help is appreciated.

[@debrawashington8392]

I found you today (nearly a year after you posted this video). I really enjoy your videos and appreciate your sharing. I have learned a lot from you so far. I just wanted to say THANK YOU.

[@RoxxyVega]

I love running a business but taxes makes me not want to lol I hate them

[@houseof8]

Truth

[@starwarsgal4140]

Thank you so much for this video. I’m going to be starting my Etsy shop In the next few months. This was super helpful!! Would you be able to share your format that you use in excel to keep your records for your taxes ? Also, where you live, do you have to file sales taxes( not income tax) for your state ? If so, is that something you do quarterly ?

[@ShayBudgets]

It’s not really a whole lot to the spreadsheet. I just have it sectioned off like “date” “category” “expense” “amount”. It’s like an expense tracker. No I do not have to file sales taxes

[@coachktasha_]

Congrats on planning to start your business. I created a guide...Taxes & The New (or Early-Stage) Entrepreneur- What You Need to Know Here are 8 Things the IRS Doesn't Want You to Know Are you a New or Early-Stagw Entrepreneur? Equip yourself with what you need to know payhip.com/b/fwJH

[@Resell_crazy]

Thank you for sharing all this info....its so much and confusing when you are a new comer

[@trinklern]

Have you thought about creating an LLC? The tax system is set up to benefit businesses not employees.

[@ShayBudgets]

I’ve thought about it for when I start my next business, yes

[@starwarsgal4140]

My account did mention to me about taking profit and moving it to a retirement fund. It helps with taxes. I forget the specifics right now being that I’m not up open for business yet.

[@Annabel_Lee1809]

Thank you so much for sharing your experience! The only thing that really made me worrisome about starting an Etsy shop was the whole tax situation. You really put me at ease :) The info about paying quarterly really helped when you touched on it, too! Ugh, I just love your channel! xD

[@thisismetoday7423]

I don’t think it was mentioned but I believe you can also write off all of your Etsy fees!

[@mrs.carolynannbudgets]

I just recently started my etsy shop and I signed up for the Quickbooks program to keep up with my receipts and things. I found this video very interesting. Do you have a business license or are you required to have one selling on etsy?

[@ShayBudgets]

No & no

[@version2media]

if i plan to create a single member llc in texas next in march or april march/april 2020...i wont pay taxes for the llc until next year correct? on april 15, 2021....then from there on i'll do the quarterlies if needed/depending on amount made the 1st year..etc. or if i start llc on march 2020, i'll have to pay 1 month later? on april 15, 2020? or if i create the llc on 4,1,2020...i'll have to pay 14 days later 4,15,2020?

[@jahbeauty1]

Thank you for all the information... it was very helpful

[@brennadavis2724]

This was so insightful! Thank you for sharing.

[@ThePrincessWithin313]

This is great info. It doesn’t apply to me now but when Iblow up this year with KZbin(LOL), it will for next year

[@bhamdallah]

Thank you so much for your informative videos, you are brilliant!

[@Loveamour699]

This is random but I see your Virgo necklace and I just want to say that I’m a Virgo too 😊

[@LifeWithKayi]

As a boutique owner buying wholesale am I considered a marketplace facilitator ? I'm trying to register my business and don't know if I should select yes or no lol.

[@sjohn-777]

Thank you very much for that information!! that was very helpful! I live in NC and have made few sales in Virginia, NC, MA, Fl, TN, TX and CA. I see Etsy collected sales tax on my behalf and I see that I have recived the amount including the sales tax amount. Should I send the sales tax $$ to each of these state? I thought Etsy would send it to them on my behalf?

[@unsaintedbeauty]

Hey girl! Awesome video, I'm finally starting my debt free journey! Question about state taxes because I just started an online shop and it's been doing great... is it true the state taxes you need to pay (such as sales tax) is only if someone orders from you in the same state your in? I was reading about a nexus and such and from the info I gathered I'm being taxed for sales tax (sales) only made within my state. Also do you save a certain percentage for federal taxes as well? I heard the part about you needing to break even by changing your exemptions for your job... thanks for any info you can share!

[@ShayBudgets]

Etsy handles all of the sales tax. But from what I’ve gathered, it is mainly and almost exclusively people who live in my state that have to pay sales tax. Also yes, I do save a certain percentage of my business income each month.

[@unsaintedbeauty]

@@ShayBudgets Ok thank you so much for your response! Currently binge watching all of your videos! I just submitted a payment today to pay off my Target CC $1862! So I'd say I'm off to a great start💖💖 Happy budgeting!

[@LakaylaAnn]

Now what is the purpose of counting the extra inventory left. If you have extra inventory left over , Is it an advantage or disadvantage when you file taxes? Is that considered a loss?

[@ShayBudgets]

It would essentially be a disadvantage but not automatically a loss.

[@LakaylaAnn]

@@ShayBudgets thank you!

[@tanwalt2625]

i wonder if its better to create all the products and leave no stock.... and maybe create quarterly ?

[@logicaljackieo0]

you would need receipts as businesses are audited quite often ;)

[@MT-qz5ke]

Hey, I love your videos! They’re so informative. I’ve been doing a lot of research and I keep running into confusing details. Hope it’s okay for me to ask this here... but did you have to obtain a business license for your Etsy shop? I’m trying to know what legal steps I have to take to make sure I do everything right. This is the only thing holding me back at the moment. Please help!

[@ShayBudgets]

No

[@wreathlings]

Do you sell budget products to keep track of inventory and etsy business type stuff?

[@ShayBudgets]

I do not

[@paola5506]

So, if I keep an itemized list of my spending and earnings, I only have to worry about taxes once a year?

[@ShayBudgets]

Not necessarily. It all depends on your situation. I’m not a tax professional but I’d say that the vast majority of contractors, side hustlers and business owners choose to pay taxes quarterly to avoid potential penalties and fees at the end of the year

[@intentionallyinpired]

Shay you’re beautiful and amazing.. so inspirational. Can I ask what you do full time.. how do you find the energy wowww❤️💕🌺🌷🌸

[@MzLelaPinkJourney]

Thank you for sharing.

[@dianecraig1119]

How do you handle sales taxes? I understand that many states require you to pay THEM sales taxes. How is this accomplished?

[@thompsontaxgroup3850]

Working with your tax professional they should be able to guide you through the process of requesting permits. Depending on how you're selling you may not need to pay sales tax. For example, if you sell through Amazon or Etsy the majority of the time they handle sales tax for you.

[@sbee413]

There is no need to form an LLC or hold a business license to have a shop correct?

[@ShayBudgets]

Not for me where I live

[@ms.budgetmom8472]

Is your marketing 100 percent deductible ?

[@ShayBudgets]

Hmmm I don’t pay for advertising or marketing so I’m not sure 🧐

[@coachktasha_]

Yes! It's deductible. Marketing is necessary to attract clients and customers...so they allow it.

[@Najhealth]

Thanks

[@tawandasangster6943]

How did you find a knowledgeable CPA

[@ShayBudgets]

www.daveramsey.com/elp/tax-services?ictid=tp.nav&snid=recommends.tax

[@aspeights1983]

Hi thank you for this video. I have one question. Did your accountant suggest opening up a business account for your Etsy shop so all your transactions are through one account?

[@ShayBudgets]

He didn’t exactly recommend that but I do have a business checking account.

[@aspeights1983]

@@ShayBudgets Okay, thanks.

[@missdee212]

9:10😆