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Report your sales as hobby income. Under current tax rules, you cannot deduct any expenses, such as the cost of your sales permit or business mileage, but you can reduce your hobby income by the cost of the items you sold.
For example, if you sold a craft for $25 that you originally purchased for $10, you would report $15 as hobby income.
To report hobby income:
When the IRS Classifies Your Business as a Hobby
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