People can purchase and sell handmade things, vintage goods, and creative materials on the well-known online marketplace Etsy. If you sell on Etsy and live in New Hampshire, you might be wondering if you have to file taxes and disclose your income. Yes, you do need to record your Etsy money on your taxes, is the quick response. What you should know is as follows.
Yes, self-employment income is subject to tax in New Hampshire. As a result, if you sell goods on Etsy and make a profit, you must include that income on your state tax return. In order to disclose your business revenue and costs if you are a sole owner, you must additionally file a Schedule C with your federal tax return.
In New Hampshire, the Business Enterprise Tax (BET) is levied on companies with annual gross receipts of $50,000 or more. This tax is based on a portion of your business’s profits, however there are certain possible exemptions and deductions. You must register with the Department of Revenue Administration and submit a tax return if you are an Etsy seller and your company fits the requirements for the BET.
Only a few states, including New Hampshire, do not impose a state income tax or a sales tax. Property taxes and a number of other taxes and fees are levied by the state, nevertheless. The Business Profits Tax (BPT), which is a tax on business income, is another tax in addition to the BET. Other taxes include the ones on meals and lodging, tobacco, and real estate transfers.
Even while the terms “sole proprietor” and “self-employed” are frequently used interchangeably, they actually refer to somewhat different entities. Being self-employed entails working for yourself and not an employer. When you own a firm as a sole owner, you are personally accountable for every part of it. Being an Etsy seller qualifies you as a sole proprietor and a self-employed person in legal terms.
In conclusion, you must file a tax return and pay income taxes if you sell on Etsy in New Hampshire. This covers all applicable business taxes as well as state and federal taxes. To be ready for tax season, make sure to keep track of all your income and expenses throughout the year. It’s a good idea to speak with a tax expert who can help you navigate the procedure if you have any queries or worries about your taxes.
Yes, you must register your business with the state of New Hampshire if you sell on Etsy as a sole proprietor in that state. On the website of the New Hampshire Secretary of State, this procedure can be completed online. Depending on the type of your firm, you might also need to apply for a business license and register for state taxes. To make sure you are in compliance with all state and federal tax regulations, it is crucial to get advice from a tax expert or the state department of revenue.