Taxes & licensing guidance

If I only sell occasionally as a hobby, do I still have to report income and pay taxes?

Hobby income is generally still reportable, even if the sales are occasional.

You sell a few items each year and wonder if it really counts as income. The tax rules feel meant for larger businesses, not small hobby sellers.

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.

Keep simple records of every sale and expense, even if you only sell a few times a year. Confirm local sales tax requirements for your events, and review IRS guidance or local tax authority rules about hobby income. When you are organized, reporting becomes straightforward and you avoid surprises.

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