Artist / Crafter Tax CheckList

Step-by-Step Artist/Crafter Tax Checklist

Step 1: Determine Your Business Status

✅ Are you a sole proprietor, LLC, or other entity?
✅ Decide if you need an EIN (Employer Identification Number) for business banking or tax purposes.

Step 2: Track Your Income

✅ Collect all income sources:

• Sales from craft fairs, art shows, online platforms (Etsy, Shopify, etc.)

• Commissions or freelance work

• Grants, awards, or royalties

• Teaching workshops or classes

✅ Keep a record of all deposits: spreadsheets, accounting software, or receipts.

Step 3: Keep Receipts and Proof of Expenses

✅ Categorize expenses related to your art/craft business:

• Materials & supplies: paints, canvases, clay, yarn, etc.

• Tools & equipment: brushes, kilns, sewing machines, cameras, printers

• Studio or workspace: rent, utilities, home office percentage

• Travel & events: gas, tolls, airfare, hotel, booth fees

• Marketing & promotion: website hosting, social media ads, business cards, flyers

• Professional services: accountant, bookkeeper, legal fees

✅ Store receipts digitally or in organized folders (physical or scanned).

Step 4: Track Business Mileage

✅ Log trips for business purposes: fairs, galleries, workshops, meetings with clients.

• Use a mileage log app (MileIQ, Stride, Everlance) or spreadsheet.

• Record date, purpose, start & end location, miles driven.

Step 5: Separate Personal and Business Finances

✅ Open a business bank account and credit card.
✅ Pay yourself a regular salary or draw to track business vs personal funds.

Step 6: Understand Deductions

✅ Common deductions for artists/crafters:

• Materials, supplies, and tools

• Studio or home office expenses

• Travel and lodging for shows or exhibitions

• Shipping, packaging, and postage

• Education & workshops to improve your skills

• Marketing, website hosting, and advertising

• Professional services (tax prep, legal advice)

✅ Use IRS Schedule C for reporting income and expenses.

Step 7: Prepare Estimated Taxes

✅ If self-employed, you likely need quarterly estimated taxes.

• Form 1040-ES for federal tax estimates

• State-specific estimated tax forms (if applicable)

✅ Deadlines typically:

• April 15, June 15, September 15, January 15 (following year)

Step 8: Retirement & Health Considerations

✅ Consider self-employed retirement plans: SEP IRA, Solo 401(k)
✅ Track health insurance premiums if self-employed (can be deductible)

Step 9: Gather All Year-End Documents

✅ Forms you may receive:

• 1099-K / 1099-MISC from platforms or clients

• Bank and credit card statements

• Receipts for expenses

• Mileage logs

Step 10: File Your Taxes

✅ Complete Schedule C (Profit & Loss)
✅ Complete Schedule SE (Self-Employment Tax)
✅ Include Form 1040
✅ State tax returns if applicable

✅ Optional: Use software like TurboTax Self-Employed, H&R Block, or QuickBooks to simplify filing.

Step 11: Keep Records

✅ Keep tax records for at least 3–7 years in case of an audit.
✅ Maintain digital backups of receipts, invoices, and expense logs.

Step 12: Review and Plan for Next Year

✅ Review your income and expenses trends.
✅ Adjust pricing, budgeting, and tax withholding for next year.
✅ Consider consulting a CPA experienced with artists to maximize deductions.

💡 Pro Tip: Use a simple spreadsheet or app to track each step throughout the year, so tax season isn’t stressful.