I thought I wanted to sell handmade goods in 2024 and then realized that life was too busy and I wasn't confident enough to go forward. I started an Etsy (sole proprietorship) and made a listing but promptly forgot about it. I ended up accidentally making a sale (~$140) and then immediately refunding the customer.
I never had any inventory. No goods were ever made and nothing tangible was ever shipped to the customer. I never did an ounce of work for this business except for making an Etsy and applying for a business license. I closed the license and shut down the Etsy by late 2024, ceasing all business activity.
My question is: do I file a 1040 Schedule C? Based on everything I have read, I am not required to since I made below $400. Really the only thing I could fill out on that form was that I sold something for $140 and then made a return for the exact same amount. I couldn't even fill out the "cost of good sold" section because I had no physical inventory or goods and did no labor.
