Etsy savings for taxes, and tax write offs

[Hi5kitty]

I recently started running an Etsy store. I was wondering how much I should be saving from sales for taxes. Also, what is the easiest/best way to keep track of small business write-offs. And what exactly can I write-off. Thank you!

[Kelly Thomas C]

Regarding sales taxes, you should be collecting sales taxes if required in the states where your goods are purchased. You will need the sales tax rates in those states. Etsy is hopefully collecting that for you and disbursing it to the state tax agencies.

Regarding what are business expenses ("write offs"), any of your costs incurrec to create and sell your products and or services. These costs include direct costs and mixed use costs like cell phone, car mileage, interest, etc. 

Regarding how to keep track of it, QuickBooks which is owned by Intuit, which also owns TurboTax is an industry leader in business accounting. If you aren't quite ready for this, keep track of your expense on a spreadsheet. Don't forget to look at transactions in your bank account and credit card accounts.

I hope this is helpful to you.

Kelly C.

CPA

[Hi5kitty]

Thank you for the advice. As for the tax part of it I was asking about income tax based on the sales I make. As far as I know Etsy does take care of the sales tax portion of things. Thank you though!