If I have a day job, do I have to report my craft fair earnings on top of my salary?

You already have taxes withheld from your paycheck and wonder if small craft sales really matter. It feels like double work to track and report everything.

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.

Track your craft sales and expenses throughout the year and report them with your tax return. If your tax bill grows, consider adjusting your paycheck withholding or making estimated payments. Treating the craft income as a separate stream keeps filing clean and accurate.