I have a hobby trying to turn into a business . It’s Jewelry making . Started last year. I’ve sold a few pair here and there to friends on my Facebook. A few at a boutique in my home state. I’m working on a website . I found out I need a sales permit in the state on TX. I got that a couple months ago … but since I technically didn’t have that last year, do I even need to still claim my earnings and do taxes??? Or do I wait to claim this years income on next years taxes since I’m more official now with the ID ? I’m so confused and not sure what to do.
You can report your Hobby Income, however, since 2018 you can't claim any expenses.
Since this won't affect your 2024 tax return, it's up to you if you want to report the hobby income. Don't report any 2024 income on your 2025 return, if you are still considering this as hobby income. Start fresh with keeping good records for 2025.
Here's some info for you for next year on Turning a Hobby Into a Business and Tax Tips for Small Businesses.
Don't forget to claim the cost of your permit as a Business Expense!
You can report your Hobby Income, however, since 2018 you can't claim any expenses.
Since this won't affect your 2024 tax return, it's up to you if you want to report the hobby income. Don't report any 2024 income on your 2025 return, if you are still considering this as hobby income. Start fresh with keeping good records for 2025.
Here's some info for you for next year on Turning a Hobby Into a Business and Tax Tips for Small Businesses.
Don't forget to claim the cost of your permit as a Business Expense!