New leathercrafter Report post Posted February 14, 2012 Hi, I was wandering if I had to pay taxes on leather wallets,belts etc. I am under 18 so I didn't know if I did or not... thanks in advance! Quote Share this post Link to post Share on other sites
Sylvia Report post Posted February 14, 2012 Hi, I was wandering if I had to pay taxes on leather wallets,belts etc. I am under 18 so I didn't know if I did or not... thanks in advance! Talk to a CPA. Generally if you make over a certain amount, you'll pay taxes on it. The good thing is you'll factor in all your materials and other cost of goods sold. Sadly even kids get taxed these days. Quote Share this post Link to post Share on other sites
dbusarow Report post Posted February 14, 2012 Talk to a CPA. Generally if you make over a certain amount, you'll pay taxes on it. The good thing is you'll factor in all your materials and other cost of goods sold. Sadly even kids get taxed these days. I paid taxes when I was in high school and that was over 40 years ago! I remember helping friends do the short form too. But that was just our after school part time jobs with a w-2. Doing taxes for a small business? I think H&R block gets a new customer for that. To our New leathercrafter, do approach this as a business. Take into account all of your expenses as well as all of your income. Write it all down and take it into the tax preparer. Use the same person your parents do. Dan Quote Share this post Link to post Share on other sites
Sylvia Report post Posted February 14, 2012 I paid taxes when I was in high school and that was over 40 years ago! I remember helping friends do the short form too. But that was just our after school part time jobs with a w-2. Doing taxes for a small business? I think H&R block gets a new customer for that. To our New leathercrafter, do approach this as a business. Take into account all of your expenses as well as all of your income. Write it all down and take it into the tax preparer. Use the same person your parents do. Dan I agree. Also save like 33% of your sales to pay sales tax and fed and state taxes. Nothing worse than having to come up with $3k at tax time. Quote Share this post Link to post Share on other sites
New leathercrafter Report post Posted February 14, 2012 Sylvia and Dan, thank you very much for the information. I will start writing down everything I buy and and sell... again thank you. Quote Share this post Link to post Share on other sites
New leathercrafter Report post Posted February 14, 2012 I was looking on yahooo and it said if you make less than $5,450 you don't have to pay taxes... is this true? Quote Share this post Link to post Share on other sites
electrathon Report post Posted February 14, 2012 This can be a very complicated and touchy subject. Technically you should have a business lisence, insurance, city permits and so on. The reality is if you are going to play around a little bit and make a couple hundred in sales you do not need to worry about it. If you are going to get serious and make a lot, it all changes. As a comparison, if you have a garage sale you are required to pay taxes on that too, most people do not. Aaron Quote Share this post Link to post Share on other sites
New leathercrafter Report post Posted February 15, 2012 Electrathon, Yes For now I'm not making that much... under $1,000... but I didn't want to do something that I wasn't supposed too... thank you. Quote Share this post Link to post Share on other sites
Vikti Report post Posted February 15, 2012 My wife started up a small business last year and she sold less than $600 last year and we had to pay about $50 in taxes. Damon Quote Share this post Link to post Share on other sites
chancey77 Report post Posted February 15, 2012 (edited) http://www.bankrate.com/finance/money-guides/turning-hobby-into-business-means-tax-breaks.aspx Bank people http://www.fool.com/personal-finance/taxes/2007/02/22/is-your-hobby-a-business.aspx double edged sword If you stick your head out the car window, you will probably get hit in the face with bugs.... Edited February 15, 2012 by chancey77 Quote Share this post Link to post Share on other sites
