Is Etsy Considered Self Employed?

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Understanding Tax Obligations for Etsy Sellers

  • Etsy sellers are self-employed. You must pay taxes from net profit.
  • If you sell over £1,000 in a year, register a business.
  • Pay taxes based on income. Tax rules differ by country.
  • You must pay tax on e-commerce income.
  • Download monthly/annual reports to get proof of income.
  • Use Accountable to control obligations as a self-employed Etsy seller.
  • Etsy sends one 1099-K form combining all shops’ totals for sellers with multiple shops.

Payment Fees and Processing

  • There is a 5% transaction fee and a 3% + $0.25 payment processing fee when an item sells.

Understanding Additional Tax Responsibilities

  • If earning over $400 from self-employment, learn about Medicare and Social Security tax responsibilities.

Revenue and Income from Etsy

  • Customers pay you through Etsy. If you have a solid shop, you might still have revenue on vacation.
  • Sales tax collected by Etsy shouldn’t be the seller’s income. Don’t count it when determining monthly income.

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