In 2018 I decided to design and sell a product, and I have been trying to figure out if I need to file taxes and if so, what form.
I sold products via a forum and took payment via paypal, but I didn't meet the minimum for paypal to send me a 1099-K. So after realizing that I decided to look up what is needed and found info about the Schedule C form, but have no idea if I need to file it or not.
I have a few questions:
1) Does the taxable income include the amount that was spent on expenses to design the products and sell them? Or is it subtracted and therefore not taxable?
2) I made less than $400 net, after expenses, do I have to pay any taxes even if I was paid via a 1099-MISC that all went to paying for expenses(and totaled over $400)?(Does self-employment tax apply to me, and if so did I mess up not paying it during the year?)
3) When filling out the TurboTax income section, do I put "Gross - Cost of Goods Sold - Expenses = Net" or "Gross - Cost of Goods Sold = Net" and then list the expenses separately?
4) And finally am I right in that I need to file a Schedule C? And does the TurboTax self-employment version do that automatically?
I have never filed anything other than with a W-2, So I am sorry if some of the questions have obvious answers, I want to make sure I am understanding everything correctly and do mess up my taxes and get audited because of that.
