Taxes for artists and creatives.

It depends on whether you run it to make a profit. The IRS weighs nine factors, including whether you keep complete books and records, the time and effort you put in, whether you change methods to improve profitability, and whether you've made a profit in some years. No single factor decides it. Either way, the income has to be reported. Running it as a business is what lets you deduct your expenses on Schedule C. Hobby expenses can't be deducted at all, and a 2025 tax law made that permanent.

Expenses that are ordinary (common and accepted in your field) and necessary (helpful and appropriate for your business): supplies and materials, studio rent or a home studio, equipment and software, booth fees and marketing, shipping, platform and payment fees, business mileage and classes that improve the skills you already use. Keep receipts and a mileage log. See the list of tax deductions for artists on this page.

No. Form 1099-K shows the gross amount of payments, with nothing taken off for fees, refunds, shipping or discounts. Those aren't income, so you report your real sales and then deduct fees, shipping and your other costs on Schedule C. Payment apps and marketplaces send a 1099-K when your payments top $20,000 and 200 transactions. Card payments have no minimum, and some states set lower limits. Income is taxable whether or not you get a form.

Yes, once your net earnings from self-employment reach $400. Self-employment tax is 15.3%: 12.4% for Social Security and 2.9% for Medicare, figured on Schedule SE. You can deduct half of it from your income on Form 1040.

Usually, if you expect to owe $1,000 or more when you file, because no employer is withholding tax from your art income. Most people avoid the underpayment penalty by paying at least 90% of this year's tax or 100% of the tax on last year's return, whichever is smaller. Payments are figured with Form 1040-ES across four payment periods a year. Our quarterly estimated tax calculator shows the numbers, and our quarterly estimated tax service is $199 for the year.

Not for taxes. By default the IRS ignores a single-member LLC for income tax (a "disregarded entity"), so you still report your art income on Schedule C with your Form 1040 and still pay self-employment tax. An LLC can elect to be taxed as a corporation, which only makes sense once profits are steady; we run the numbers first. What an LLC does add is a separate legal business for contracts, bank accounts and state filings, with state fees that vary by state. Questions about personal liability are for an attorney.

Sales tax is set by each state, not the IRS, and rules, rates and temporary-vendor permits differ by state and sometimes by city. Selling in person can mean registering with that state and collecting its sales tax, and some events ask for your permit number. Check the revenue department for each state where you sell. Selling in New Jersey? Read our NJ sales tax guide. Sales tax you collect from buyers and pass on to the state isn't your income.

State returns are available for every state except Connecticut, Maryland and Oregon, the same as our other tax services. That includes New Jersey, New York and California, and we can do your federal return wherever you live.