The IRS and your hobby

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03-31-2012, 09:41 PM

#41

charlotte37830

Senior Member

Join Date: Nov 2010

Location: Oak Ridge,TN

Posts: 823

Quote:

Originally Posted by jaciqltznok

starting this year NEW laws went into effect. That is why you have to file your social to have a paypal or any other online billing service now!

I didn't have to provide my social when I open my paypal account last month.

04-01-2012, 12:13 PM

#42

pacquilter

Senior Member

Join Date: Aug 2011

Location: Alaska

Posts: 661

It's kind of an expensive hobby/business, so looks like there could be quite a few items one could write off if they have to claim it as income.

04-01-2012, 01:24 PM

#43

sweetana3

Senior Member

Join Date: Feb 2011

Location: central indiana

Posts: 686

Quote:

Originally Posted by JANICE E.

About ten or so years ago, I did craft shows it was away to be with my child growing up and making some extra money to help in family bills. Once IRS stepped in and came around booth to booth for a form to fill out so you could get taxed on the amount you made, is the time I quit crafting and going to all the craft fairs. I now just make things to give as gifts. Soon you'll pay for the air you breath!

Sorry, it was not the IRS but states do this to properly collect sales tax.

04-01-2012, 01:25 PM

#44

sweetana3

Senior Member

Join Date: Feb 2011

Location: central indiana

Posts: 686

Quote:

Originally Posted by Sewfine

Yes, I can be a write off as a loss. Check IRS Publication 17 if you have to claim the money you earned. I was told a hobby can not be taxed. We all know that most of us do not sell our quilts for the real value they are worth. Time, supplies, notions, rulers, patterns, fabric (good quality is not cheap), electricity used, and not to mention the maintaince on the sewing machine. My understanding is that if you are not required to have a business license there should not be any taxation.

Sorry, the irs cares nothing about a business license. Drug dealers are required to report their income and I guarantee they dont apply for business licenses.