ETSY Store - understanding how much I earn and the amount to pay USA Income Tax

[PrntblDsgnsTemplates]

Hello

I am trying to understand how to properly pay income tax on the ETSY shop based out of the USA.

For example, in a single year, I generated $100 Revenue shown on the ETSY dashboard.

For each sale, ETSY charges a fee. For the $100 Revenue, ETSY takes part of this revenue.

I don't get $100 amount. I get a partial value of $100 amount.

1. How do I figure out the amount that I earn per each sale and the total income earned?

2. Do I pay taxes on the $100 revenue amount?

Thank You

[VINTAGEbytheMAGPIE]

1. if you go your finances section you can run a month by month breakdown of all fees and payments

[VintageRescueSquad]

You earned the $100. Any fees are offset on taxes. You write them off as itemized on Schedule C. They are a cost of doing business.

[PrntblDsgnsTemplates]

Thank You

[BagmakerSupply]

@PrntblDsgnsTemplates: Starting point : https://www.etsy.com/seller-handbook/article/22660467494 Then find a qualified tax advisor to assist you so keep the correct records from day one.

[bradgoodell]

It's a little more complicated than just Selling Price - Etsy Fees

There are a variety of expenses you can write off.  

• Equipment
• subscriptions
• supplies
• home office
• mileage
• etc.

Find a good CPA who specializes in small businesses and preferably e-commerce.  E-commerce is different than having a brick & mortar store, especially when dealing with sales tax and Marketplace Facilitator laws.  

[PrntblDsgnsTemplates]

Thank You Very Much! This is very helpful!

[CostumeCoutureNaomi]

Don't use the dashboard for revenue numbers.

Go to Finances > Legal and Tax Information

Scroll down to the bottom of the Legal and Tax Information page.

At the bottom is a section called "Your Tax Year"

This is the 1099 section with the most accurate gross revenue calculations for the IRS reporting.