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How to file as Etsy artist but also jointly...

So I’m wanting to kick off a small business on Etsy in 2021 selling my art. I know that I have to file/pay quarterly, but I don’t expect this to make more than a few hundred my first year. Should I still file quarterly?

Also, I still want to file jointly with my husband since we have a child. Will I add my income to his when we file jointly even though it’s already been taxed/paid?

 

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Accepted Solutions
DJS
Alumni
Alumni

How to file as Etsy artist but also jointly...

You have two choices (1) if your husband is employed he may be able to adjust his withholding to take account of the additional amount that you may earn or (2)  you file and pay quarterly estimated taxes based on what you think you might owe. In either case you would still file a joint tax return. You include both your incomes on the joint tax return, and you also include the quarterly estimated taxes that you've already paid together with the other taxes you or your husband also paid through withholding. 

Your quarterly tax payments are no different than taxes that are withheld from wages and salaries. Both are reported on your joint tax return and count toward the tax that is dues with your tax return.

Answers are correct to the best of my ability but do not constitute legal or tax advice.
**If this post is helpful please click on "thumbs up"**

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2 Replies

How to file as Etsy artist but also jointly...

You will still be able to file a joint return even with your Etsy income.    If you do not make much the first year you might not need to pay quarterly amounts.  Keep good records of the expenses you have for supplies, shipping etc. to enter on a Schedule C for business expenses.

 

You will pay self-employment tax for Social Security and Medicare.

 

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

 

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

 

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

 

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

 

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

 

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
DJS
Alumni
Alumni

How to file as Etsy artist but also jointly...

You have two choices (1) if your husband is employed he may be able to adjust his withholding to take account of the additional amount that you may earn or (2)  you file and pay quarterly estimated taxes based on what you think you might owe. In either case you would still file a joint tax return. You include both your incomes on the joint tax return, and you also include the quarterly estimated taxes that you've already paid together with the other taxes you or your husband also paid through withholding. 

Your quarterly tax payments are no different than taxes that are withheld from wages and salaries. Both are reported on your joint tax return and count toward the tax that is dues with your tax return.

Answers are correct to the best of my ability but do not constitute legal or tax advice.
**If this post is helpful please click on "thumbs up"**
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