Do I need to pay estimated quarterly taxes for my craft business?

You are making sales throughout the year and worry about a big tax bill later. Quarterly payments sound complicated and easy to miss.

The IRS generally requires individuals to report all income earned from business activities, regardless of the amount. While certain thresholds (like the $600 1099-K limit) trigger automatic reporting from payment processors to the IRS, they do not necessarily define a vendor's individual tax liability. Additionally, while business expenses and reinvestments may reduce taxable profit, they do not automatically eliminate tax obligations. It is important to consult IRS Publication 334 (Tax Guide for Small Business) or a CPA to understand how self-employment taxes and income reporting apply to your situation.

One helpful strategy is to estimate taxes based on monthly profit and, if needed, make quarterly payments. Many vendors set aside a percentage of profit into a tax savings account to keep payments manageable. If you are unsure, a tax professional can help you build a quick estimated payment plan.