Yes that's true, it is an IRS requirement to report all income.
To report, you may use your Etsy account to total your income received from
this source, without receiving forms such as the 1099-K.
To enter this income,
please follow the steps below.
Note: You
will require TurboTax Deluxe to file a
Schedule C
. Additionally, to claim expenses
related to this income, you will require an update to TurboTax Self-Employed (or TurboTax Home & Business if
using the desktop product).
- First, sign in to My TurboTax
- Next, click the orange Take
me to my return button
- On the white bar at the top,
click Federal
Taxes
- Then, Wages & Income
- In the Self-Employment section (you may need to click Show more), next to Income
and Expenses, click Start (or Revisit)
- When asked "Did you have
any self-employment income or expenses?" select Yes
- You'll see the screen titled
"Tell us the type of self-employment work you do." Enter
"Etsy" or similar description, then Continue
- On the next screen "Let's
get income for Etsy," select the button Additional
income. Includes 1099-K, check/cash payments and Continue
- The next screen will say
"Tell us about additional income for your Etsy work." List descriptions and amounts
on this screen.
Please follow the
screenshots below for additional visual guidance.
Revert back to step 3
if you get lost at any point.
For other users
already in the TurboTax Self-Employed or TurboTax Home & Business versions:
If you do not see the Federal Taxes tab, you may reach this entry by clicking
the Business tab > Walk me through everything > Business Income and
Expenses > Profit or Loss from Business > (interview screens) > Business
Income > General Income.
Or, feel free to post
your question for additional guidance in the Answers Exchange by clicking this link!
