My spouse made less than $2,000 last year through her Etsy shop. Should we be filing taxes for it?

[gsmann726]

We are filing jointly, and we don't know much about having our own Etsy shop as its our first year doing it.  She only made $1,XXX last year.  How do we file taxes for this if at all?  Should we be receiving some sort of form from Etsy?

[DanielV01]

The business is filed on Schedule C.  If you are in direct sales, it is likely that you are not going to receive a 1099 for her business.  Also, you want to be sure to claim all of the expenses as that reduces the taxable income.  If you have a loss, that's okay and quite normal for the first year of business.  It will also increase your refund.  Here is how to access that form in TurboTax:  https://ttlc.intuit.com/replies/3302122