Get your taxes done using TurboTax

Hi @PennyS ! Thanks for your question! I'd be happy to give you some guidance.

• By "new rule", I am wondering if you mean the new requirement the IRS has given to third party payment providers, where they now have to provide a 1099-K to sellers such as yourself (provided that your total business transactions were $600 or more for that year).  
• Even though the 1099-K may be new for you for tax year 2023, all income you receive for selling online is actually taxable. This means that, even if you receive $599 and never receive the 1099-K, the income would still need to be reported on your tax return.
• The W-4 form is not a requirement for your sales on Etsy/eBay. But it could come in to play if you are employed somewhere, and you wanted to use that job's W-4 form to increase your withholding to cover taxes related to your extra Etsy/eBay net income. TurboTax has an awesome calculator that you can use to help you figure out how much extra to have withheld.  Here is a link: https://turbotax.intuit.com/tax-tools/calculators/w4/ . Just fill that bad boy out, and use the results to fill out an updated form, and then give it to your employer. One note: if you change your W-4 form later in the year (like now vs. January), then you would need to prepare a new W-4 form at the beginning of the following year. This would ensure that you are having the correct amount withheld for each year.
• If you don't want to increase your withholding from your paychecks, you could consider paying in quarterly estimated tax payments instead. Here is an article that discusses this option:  a-guide-to-paying-quarterly-taxes .

I hope this information is helpful, @PennyS ! Besides your sales on Etsy/eBay, do you also have a job as an employee? I'll stay tuned in case you'd like to follow up. Thanks again!