Selling on Etsy, eBay, or Amazon? Calculate your net profit and exact tax liability after all fees and costs.
TurboTax Self-Employed imports your 1099-K directly from Etsy and calculates your Schedule C automatically. Average Etsy seller saves $1,200+ in deductions they'd miss filing manually.
Import Your 1099-K with TurboTax →The 1099-K threshold: In 2026, Etsy must send a 1099-K if you receive more than $600 in payments. Even without a 1099-K, you must report all income.
COGS is your biggest deduction: Materials, supplies, and manufacturing costs reduce your net profit dollar-for-dollar. Keep every receipt for materials you use in products you sell.
Home studio/craft room: If you have a dedicated space for making products, you qualify for the home office deduction — even renters qualify.
SE tax applies: Unlike Airbnb income (passive), Etsy is active trade/business = 15.3% SE tax. Budget for this — it's the shock most new sellers face at tax time.