What if I sell goods on Etsy, Big Cartel, or other sites?

In most cases, income you receive for selling goods is considered self-employment income if you sell the goods for more than you paid for them. This income is reported on Schedule C. You're required to report this income producing activity on your tax return.

You can, however, take deductions to offset this income; some common deductions sellers take include:

• Home office deduction
• Inventory
• Commissions and fees
• Office supplies
• Subscriptions

If you're unsure whether your income is subject to self-employment tax, use the IRS Interactive Tax Assistant to help you determine what income is subject to self-employment tax.