Etsy records for your Sales Tax Returns


Visit our Etsy shop: GoToSupplies
Go To Great Panes, Kathryn Maloney ©2014
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

I’ve seen quite a few posts lately from folks looking to download their Etsy records to add up what they collected to file their sales tax return–also helpful for getting your info for your income taxes.

If you need help knowing whether or not you should be collecting sales tax for your in-state transactions, see here: Sales Tax Links to Official State Web Sites

Here’s how to retrieve and add up your sales tax:

Download Your Records

1. Go To Your Shop
(Direct link if you’re logged in: https://www.etsy.com/your/orders/sold)

2. Just below the last order click the link to the download page:
“Download a CSV file with the details for each order.”

3. Page down to Orders, choose the download type and time frame for the CSV you want to download.

To find the sales tax column:

If you choose to download the Order Items CSV, sales tax is column J.
If you choose to download the Order CSV, sales tax is column U.

Add Up the Sales Tax Collected

If you have just one rate for the entire state you can use auto-sum to add them up in a flash. Here’s how:

Autosum: Adding Up Your Totals

If you have just different rates based on the ship-to address, it’s not that easy…

Etsy doesn’t list the sales tax rates for the transactions in the download, so if your state has different rates based on the ship-to address (don’t know if it does? see the Sales Tax Links to Official State Web Sites link at the top of the post), you’ll probably be best off keeping a running list of in-state transactions and all the details you need to properly report your sales tax throughout the year. We do this in an Excel file just like the CSV that you can download from Etsy.

If you didn’t do that for the previous sales tax period, you can still use the Etsy download, it’s just a lot more work to research which zip code was in which jurisdiction. You’ll be able to sort the file so all your in-state transactions are grouped together, which will help you find the orders you need to remit sales tax on, then do the math for the rate based on the buyer’s ship-to address.

And when you’re done, you’ll have a model to build your new document for tracking transactions as they come in to make next year easier. 🙂

Don’t have a spreadsheet program like Excel? The Autosum link above will also hook you up with a free downloadable program that will allow you to use spreadsheets.


Visit our Etsy shop: GoTo
Go To Great Panes, Kathryn Maloney ©2014
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

bloke

US Tax Deadline: April 15th & Help Links

GoToSupplies on Etsy
Visit our Etsy shop:
GoToSupplies

Go To Great Panes, Kathryn Maloney ©2013
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

April 15, 2013: See that on the IRS website here:

http://www.irs.gov/individuals/article/0,,id=118506,00.html

If you need to file income taxes for any reason, you’ll need to include your small business income no matter how small it might have been, or even if this year your business shows a loss instead of a profit. Need help finding out if you need to file at all? See here:

Do I Need to File a Tax Return?

If you’re having trouble with the Schedule C (sole proprietorships report their business income on the schedule C), the IRS publications linked to from here might be of help–these are documents that help address line numbers that are missing/are poorly covered in the Schedule C Instructions:

US Sellers: Help for Filing Income Taxes for Your Small Business

and if you still have questions, you can get answers directly from IRS employees. Most workers I have talked to have been nice, so don’t let their employer put you off. 🙂

You can give them a call toll free, be sure to ask for someone who can help with the Schedule C (profit/loss for businesses) if you’re filing as a sole proprietorship:

Live Telephone Assistance
http://www.irs.gov/help/article/0,,id=96730,00.html

or you can go to a local IRS office and sit down with someone in person:

Taxpayer Assistance Center Office Locator
http://www.irs.gov/app/officeLocator/index.jsp

When I call for help, I ask which publication number the answer can be found in and on what page.

Sometimes reading a rule in context helps you understand it better and you can be more confident that the answer applies to your specific tax situation.

Sometimes a taxpayer doesn’t mention all the things needed to get an accurate answer when speaking with an IRS employee, and sometimes the IRS employee doesn’t understand the full question/situation and reading the answer in context might give you the tip off that the answer wasn’t right for your tax situation & that you might need to call back & clarify what you need.

You can find links to all the IRS publications on their site:

IRS Forms and Publications

I like to download PDF versions to search the document easily for key words, but I prefer to read the online versions (html) because of the links to other pages that can be helpful.

Quarterly Taxes??? Help for understanding what they are & when you need to pay them


Visit our Etsy shop: GoToSupplies
Go To Great Panes, Kathryn Maloney ©2012
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

So it seems the Etsy “Taxes, Typewriters, Teams!” email and the “Wrapping Your Head Around Quarterly Estimated Taxes” blog post have folks wondering what they are supposed to be doing tax-wise and plenty seem confused.

While the vast majority of sole proprietors might have to pay quarterly estimated income taxes as mentioned in Etsy’s blog post, that is not true of the vast majority of Etsy sellers since most don’t sell enough to owe enough in income taxes to file quarterly. I’m afraid that wording was scare-tactic-y, and has made many worry.

To help allay your fears, here’s the basic run down for US sellers…

None of this info is meant to be a replacement for a good small business accountant if you need one, just a way to lead you to the info you can get free from official sources.

Federal:

Income Tax & Self-Employment Tax:
Most US sellers are responsible for filing tax returns on their sales to the federal government. If you are a sole proprietor you file the schedule C with your personal income taxes at the end of the year to report your self-employment earnings (help with the schedule C here).

Quarterly Estimated Taxes: This is what the Etsy email & blog was referring to–it is just a way to pay you self-employment tax (Social Security & Medicare Taxes) as you go instead of paying it all at the end of the year. You only need to pay quarterly taxes to the federal government if you expect to owe $1,000 or more in income taxes at the end of the year.

Estimated taxes are like when you work for someone else & there’s tax withheld from your pay–for self-employed individuals there’s no one doing the withholding, so there’s estimated tax instead.

Most small sellers don’t need to worry about estimated taxes–if you didn’t owe anywhere near $1,000 last year and business is about the same, you’re probably fine but you should keep track of your books so you can estimate when you’ll need to start paying quarterly taxes.

To see this info on the IRS’ website, and to see the way you calculate tax owed before you do your end-of-year income taxes to see if you need to file quarterly taxes, see this IRS page:

Estimated Taxes on the IRS website
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes
“Who Must Pay Estimated Tax” section tells you about the $1,000 number.

“How To Figure Estimated Tax” section tells you the math behind your income & expenses that determines how much you’ll need to pay/shows you if you pass the $1,000 mark–as you see on that page, you use the IRS Form 1040-ES to do that math.

State:

Income Tax:
Most US sellers are responsible for filing income tax returns on their sales to their state government (in states with income tax). Some states will require you to file more often than once a year so be sure to check directly with your state for how it works.

Sales tax:
Most US sellers (whether a business or hobby / individual seller) need to file sales tax returns with their state government for the sales tax due in-state transactions. (More on sales tax below.)

Please note:
A few states also have business taxes, property taxes or other taxes but the rules are very different from state to state so I recommend checking out your state’s website and/or calling them for more details about your responsibilities (see the link below for your state’s official website).

Sales tax is a state-based tax and is totally separate from income tax. It usually requires the seller to register first, then collect tax from the buyer & remit it to the state on sales tax returns to be filed according to the schedule the state gives you (some monthly, some quarterly, some only once a year).

Generally, sales tax returns need to be filed whether or not you’ve had any sales.

If you haven’t registered with your state yet, this post will help you find the info you need directly from your state:

US: Sales Tax & Business Registration
Links to Official Government Websites
If you need more help, I can often be found in this Etsy forum thread–just post there and I’ll respond best I can:

http://www.etsy.com/teams/7722/business-topics/discuss/9799713
 

I hope that clears a few things up and de-stresses a lot of sellers. 🙂


Visit our Etsy shop: GoTo
Go To Great Panes, Kathryn Maloney ©2012
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

bloke

Auto-sum: Adding Up Your Totals

GoToSupplies on Etsy
Visit our Etsy shop:
GoToSupplies

Go To Great Panes, Kathryn Maloney ©2012
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

One of the handiest tools in the box for a small business (and personal) finances is the auto-sum feature on spreadsheet programs.

Many use Microsoft Excel for their spreadsheets (need help with that? See here: http://www.gotogreatpanes.com/blog/?p=858) but other programs have that feature too.

If you don’t have software on your computer to create/edit spreadsheets, Open Office is great free program you can download–it has several sections:

Writer: word processor
Calc: spreadsheets
Impress: multimedia presentations
Draw: creates images as simple as diagrams and as complex as 3D illustrations
Base: databases
Math: mathematical equations

Calc is the one to use for spreadsheets & CSV files. I’ve also used the word processor, but haven’t tried the other parts–I’d love to hear how you like them!

Open Office Calc

If you just want to see what the sum is temporarily, you can highlight an entire column by clicking the letter above the column–Calc will show you the sum of all the items in that column in the footer of the window (I’ve shrunk it down to keep it easy to see here, but the window normally fills all/most of the screen):

Click images for a larger view

Before:

Click column header (red arrow):

Sum shows (red arrow):
(The sum won’t be exactly in the right-hand corner of the program, just in the footer. I’ve shrunk the whole thing down for easy viewing in the small images here.)

You can also just highlight a few cells and it will do the same, no need to do the whole column if you want to total only certain entries–even if the entries aren’t next to each other:

Open Office Calc’s Autosum

If you want to add the column up and save the total for quick reference later (without having to reselect the column)/to see how it changes when you add/remove/edit the numbers, you can use the auto-sum button to insert the total into the spreadsheet.

Highlight what you want to add up plus one extra blank space below it, and click the blue “E” (see the red arrow):

and the sum will be put in the extra box; in this example $14.95 is the total:

Go To Great Panes, Kathryn Maloney ©2012
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

New page: Income Tax Help

We’ve added a new page to the blog for help filling out the Schedule C for US small business income taxes–see the gold Income Taxes link in the right sidebar. (It’s a revision/update of an older post made into a page.)

Hope the links there help to ease the stress of filling out your tax return!

US Tax Deadline: April 17th & Help Links

GoToSupplies on Etsy
Visit our Etsy shop:
GoToSupplies

Go To Great Panes, Kathryn Maloney ©2012
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

April 17, 2012: This year the deadline for filing your US Income Taxes is extended–see that on the IRS website here:

http://www.irs.gov/individuals/article/0,,id=118506,00.html

If you need to file income taxes for any reason, you’ll need to include your small business income no matter how small it might have been, or even if this year your business shows a loss instead of a profit. Need help finding out if you need to file at all? See here:

Do I Need to File a Tax Return?

If you’re having trouble with the Schedule C (sole proprietorships report their business income on the schedule C), the IRS publications linked to from here might be of help–these are documents that help address line numbers that are missing/are poorly covered in the Schedule C Instructions:

US Sellers: Help for Filing Income Taxes for Your Small Business

and if you still have questions, you can get answers directly from IRS employees. Most workers I have talked to have been nice, so don’t let their employer put you off. 🙂

You can give them a call toll free, be sure to ask for someone who can help with the Schedule C (profit/loss for businesses) if you’re filing as a sole proprietorship:

Live Telephone Assistance
http://www.irs.gov/help/article/0,,id=96730,00.html

or you can go to a local IRS office and sit down with someone in person:

Taxpayer Assistance Center Office Locator
http://www.irs.gov/app/officeLocator/index.jsp

When I call for help, I ask which publication number the answer can be found in and on what page.

Sometimes reading a rule in context helps you understand it better and you can be more confident that the answer applies to your specific tax situation.

Sometimes a taxpayer doesn’t mention all the things needed to get an accurate answer when speaking with an IRS employee, and sometimes the IRS employee doesn’t understand the full question/situation and reading the answer in context might give you the tip off that the answer wasn’t right for your tax situation & that you might need to call back & clarify what you need.

You can find links to all the IRS publications on their site:

IRS Forms and Publications

I like to download PDF versions to search the document easily for key words, but I prefer to read the online versions (html) because of the links to other pages that can be helpful.

Confused about Income Taxes & Paypal or Etsy's 1099?

Visit our Etsy 2nd Shop: GoToSupplies


Go To Great Panes, Kathryn Maloney ©2012
(This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.)

I’ve seen lots of posts with confusion about the new info requirements Paypal is sending to some sellers, and also about Etsy requesting tax id numbers or social security numbers from sellers who take Etsy’s Direct Checkout.

In 2011 the IRS put new rules in place for companies that process credit cards, and now they need the information to send a 1099 to certain sellers. Both companies are asking for info long before they need it–I assume it’s so that there’s no risk of you losing the ability to take payments when you reach the threshold where they’ll have to report your income.

Here’s the scoop:

  • The 1099 Paypal (or Etsy) is sending out is only fulfilling their obligation under a new law, it has nothing to do with whether or not you are required to file income taxes.
  • Paypal (or Etsy) will only be sending a 1099 to people who bring in at least $20,000 AND have 200 or more transactions through PP (or Etsy’s Direct Checkout credit card processing service).
  • Regardless as to whether or not Paypal (or Etsy) sends a seller this form, the seller must report income for their business if they meet the IRS’s requirements for filing a return.

Do you meet the requirements? Generally speaking, if you have to file income tax for any reason (day job, filing jointly w/ spouse, etc) you must report all your income on your taxes.

If you had net earnings from self-employment of at least $400, you will most likely need to file whether or not you have other income or reasons to file.

Your best bet is to get info about whether or not you need to file directly from the IRS–this post should help:

Do I Need to File a Tax Return?

And if you do need to file, this post will help with getting & adding up your income/expense info from Paypal:

Download Your Paypal History

This one will help when you are filling out the Schedule C to report your small business income:

US Sellers: Help for Filing Income Taxes for Your Small Business

Turbo Tax: Many folks ask about whether or not they need to get the Home & Business version of TurboTax. I haven’t tried that version myself, but I do know that with Turbo Tax Deluxe, you can mark that you have income from self employment to start the interview for the Schedule C, or use the ‘add a form’ feature and add the Schedule C to your taxes.

The interview process in the TurboTax Deluxe does cover the Schedule C, but their website implies that the home & business version has more help for filling out the Schedule C.

Income tax is totally separate from sales tax requirements for your business. See here for help with sales tax & business registration:

Sales Tax & Business Registration
(links to official state websites)

Even if you just sell online and/or just as a hobby, most states require sales tax registration.


Go To Great Panes, Kathryn Maloney ©2012
(This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.)

bloke

Do I Need to File a Tax Return?

There’s so many people asking if they need to report their online income on their income taxes that I thought linking to this IRS app that will help you determine if you need to file (or if you should because of a benefit to you even though you don’t have to) might be useful.

This should still give you a good idea if you need to file–click the Begin link below the paragraph of text:

Do I Need to File a Tax Return?

There are other questionnaires like this on the IRS site too (page down below the intro text for links):

Interactive Tax Assistant (ITA)

If you need to file, you’ll need to report all your income. The following posts should be helpful to you:

Getting Ready to File Your Income Taxes?
and
Help for Filing your Federal Income Taxes for Your Small Business

Getting Ready to File Your Income Taxes?


Visit our Etsy shop: GoTo
Go To Great Panes, Kathryn Maloney ©2011
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

It’s that time of year! Lots of folks looking for info on getting their records ready for income taxes–the links below should help. (Links open in a new window.)

Help for downloading your Etsy & Paypal records:

Etsy: Download your Sales and Billing Data to a Spreadsheet

Download Your Paypal History

You’ll need a program with a spreadsheet to open csv files. If you don’t already have one this is great free software which has a spreadsheet available:

Open Office

You might also find the IRS publications listed here helpful for figuring out what goes where on your income taxes:

Help for Filing Federal Income Taxes for Your Small Business

And if you haven’t registered with your state yet (or on a more local level like city or county), you might want to check into the requirements for people selling from your area–the laws are different everywhere.

What you consider your hobby might be considered a business by the government, and their opinion is the one that counts… 🙂

US Sellers: Sales Tax & Business Registration

Go To Great Panes, Kathryn Maloney ©2011
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

Go To Supplies
Visit our 2nd Etsy shop: GoToSupplies

New states added & links updated: Sales Tax & Business Registration

The Sales Tax & Business Registration link page is up to 22 states now, & new links have been posted for some of the states that were already there:

Alabama Arizona
California Colorado
Connecticut Florida
Illinois Kentucky
Louisiana Massachusetts
Michigan Minnesota
New Jersey New Mexico
New York North Carolina
Pennsylvania South Carolina
Tennessee Texas
Washington Wisconsin


If a state isn’t there and you’d like to see links please leave a comment with the state and I’ll add it to the top of my list!