I have recently agreed to sell a number of art pieces I've

>>1557453
>selling that piece of shit for $1000
Damn, I need to become an artist

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>>1557454
Actually it was 50 of those plus pic related. This was well over half the total.

>>1557454
Also I'm not an artist by trade. My degree is in electrical engineering. This is my hobby.

Do you use Etsy or Deviant art? What's your usual price tags?

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Here's a price invoice template for you. Just put in your own info, and you're good to go.

As for sales tax, call your local chamber of commerce or the tax office for your state. Theyll tell you in 2 minutes.

>>1557453
What state are you from?

First, the reason they want to invoice it is because they are paying you over $600. That's the "reportable threshold" for the IRS. They will likely need a W9 form from you with your SSN and at the end of the year they should issue you a 1099.

Even if they don't issue it, they will likely use it as a write-off on their taxes and would have reported your payment to the IRS, so you should include it in your taxes.

From there, you'll need to fill out a Schedule C to report the income. You can use the same form to report the costs associated with making that money. For example, materials used to create it would be under costs of goods sold. The Schedule C would summarize it for you and you report the bottom number on line 12 on your Form 1040. It's not really a big deal.

As far as state taxes. Your normal state income tax would be treated the same, as most work off of your AGI. For sales tax? That all depends on your state. Where do you live?

>>1557657
For writing an invoice, open up Excel and just use a template. Make up an invoice number(that's for your own reference anyway, if you want to pretend you've sold more, use a higher number, doesn't matter). This part is no big deal.

It honestly might be worth paying someone to do your taxes for you if you're confused. Give the company your W9, that will get that part done properly. When you go to do your taxes just bring a copy of the invoice with you, along with receipts for costs to make this, and they can fill all this crap out for you. They'll already know what to do.

Do you do your own taxes today?

>>1557587
I usually just share pictures on facebook and the customer contacted me. I haven't actually sold to anyone else online yet.

>>1557657
Thanks, I'll check that out.

>>1557688
Illinois

>>1557691
As requested by the customer I'm using the PayPal invoice form. I mostly just needed advice on the tax and reporting income.

>>1557706
I do my own taxes with Turbotax, yeah. This sale is just a new development I wasn't sure about.

>>1557747
Yeah man. You'll be fine. Give them the invoice and the W9. I've used Turbotax in the past and it will ask you the right questions. If you continue to use it you may have to get a version that includes business forms. I personally used Home & Business edition. Don't sweat it.

>>1557747
>>1557762
Just remember sometimes they won't bother mailing you a 1099, and you don't have to hand it into the IRS like you would a W2. Just remember what you billed them and enter it as a 1099 in Turbotax and it will handle it for you just the same.

>>1557453
That looks like a medieval cock ring m8.

>>1557780
Then it must be yours because it's only an inch and a half long.

>>1557762
>>1557768
Thanks for all the help. Hopefully I still have some of the money left after all that.

>>1557787
Besides the filthy rich the most you'll lose in federal taxes is 25%. I'm not from your state but I'd keep $300 aside unless you already expect to get at least that much back in a refund. In the latter case, nothing to worry about, just a reduced refund.