Venmo & Credit card sales

[sussmeier]

I have recently started selling my watercolor artwork thru craft fairs. Some of the payments were thru Venmo and  Square credit card transactions. Some Cash. What are the guidelines for reporting this income?

[GabriellaEA · Accepted solution]

Hello @sussmeier congratulations on selling your artwork! This could be a hobby or a business, depending on how regularly you do this work and what your intentions are with it. Regardless of whether it's a hobby or a business, you'll want to keep your own records of all your income, whether it's through a payment processor like Venmo or Square, by cash, or by check. If you do over $600 in sales through Venmo or Square, you'll receive a 1099-K that reports the income to you. You can use the 1099-K to help make sure you're reporting all your income on your tax return, but you can report income from cash and checks that you tracked separately as well. You don't need to have a tax form to report it as income. If you're self-employed, you can also deduct your expenses for things like materials and supplies. 

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[sussmeier]

Thank you so much!