Etsy shop without 1099K, how do I report?

[Avaldez1393]

Hello! I work a full time job but have an etsy shop on the side. It is a registered LLC to sell pottery, but I have only sold about $400 worth of pottery. I don't have a 1099K for that reason. How do I report this on my taxes?

[SharonD007]

You will report this self-employment income on ‌Schedule C of your tax return. The IRS considers self-employment income as a business, so you will also be able to deduct common business expenses from your income. To enter you business and self-employment income, follow the steps below:

1. Open TurboTax
2. Select Wages & Income
3. Select Self-Employment Income and Expenses
4. TurboTax will guide you through the interview screens to help you enter your income.

Review the TurboTax articles Reporting Self-Employment Business Income and Deductions for more information on business deductions.  For additional information, review What self-employed expenses can I deduct? and How do I report income from self-employment? 

[Avaldez1393]

Thank you for your answer! 

Should I list my expenses as deductibles even if this is a side business? It began as a hobby and I turned it into a business, so I have many expenses that were for both, and the profit is definitely less than the expenses (about $1000).

[RobertB4444]

Absolutely.  It may have started out as a hobby but you're treating it as a business now.  This year your business lost money.  Next year maybe it will make money.  Keep trying!

If it doesn't make money after three years, though, then it is a hobby.  At that point the income is taxable but you can't deduct the expenses.  So it will probably be time to shut down the Etsy shop.

@Avaldez1393