Should I file a schedule F or a schedule C? I have two acres and I grow flowers that I dry and sell on Etsy, but I also sell non-flower gift items.

[floatingpetalsco]

My Etsy shop is around 80% flowers and 20% purchased gift items.  Most of my flowers are grown in my garden, not in a field.  I have been approved for a farm deferral if that matters...  Thanks.

[Cattlerancher · Accepted solution]

Schedule F is for earned income from a farm, schedule C is for earned income from all other businesses. They are both taxed the same so the income and expenses categories are the main differences. You can always use "other" and then describe the category. I would suggest using schedule C because you are retailing gift items.

Here is an IRS link to view both forms so you can see the categories offered;

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

https://www.irs.gov/pub/irs-pdf/f1040sf.pdf