What taxes beyond sales tax do I need to pay on my craft income?

You're focused on collecting sales tax but unsure what other taxes might apply. It is hard to know what to budget for at the end of the year.

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 revenue and expenses throughout the year, and estimate your profit quarterly. Set aside a portion of profit for income and self-employment taxes, and review your obligations with a tax professional if possible. When you plan ahead, tax season becomes manageable.