All income is taxable, whether you receive a 1099 or not. As Tax Champ @xmasbaby0 said, on top of income tax, you will owe self-employment tax on the net profit (income – expenses) from Etsy if the amount is above $400.
If you don’t receive Form 1099, you’ll need to set up your Etsy business. If you want to claim expenses, TurboTax will ask you to upgrade to TurboTax Self-Employed. It will also show you how much in expenses you will have to have to make your upgrade pay for itself.
To set up your business:
- Type sch c in Search (the magnifying glass) in the upper right
- Tap Jump to sch c and start answering questions
- On “Let’s enter the income for your work," choose Other self-employment income, includes cash and checks
The ultimate guide to tax deductions for the self-employed
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