To deduct expenses for selling my private art, do I need a business license?

I'm a small time artist. I just started to market my crafts on the web. Naturally there are many expnses with do so. I am an honest person and do file taxes, but also would like to be able to deduct my many expenses, so as not to have to pay income taxes on my total sales. In order to show decuctions to the IRS is a business license required? I basically sell about $1000 a month via the web. This is not a lot, it's just extra pakcet income for me. My expenses total about $300-$350 each month. Google ads, website hosting, materials, some ebay fees, credit card prosessing etc.

Also, can I incorporate this income with deductions into my private person tax return, or is a seperate business tax return required?

Thanks!

What you are describing is the most common form of business, the sole proprietorship. IRS doesn't require any licenses for you to deduct your legitimate business expenses. You may consider using some sort of pc-based record-keeping software to keep things organized (Microsoft Money, Quicken Home & Business, Peachtree, etc.).

And don't forget to track any mileage, travel and meals & entertaining you incur for business as these are often overlooked by business owners.

You may want to get a tax professional in your area if you have questions-check online or yellow pages(not H&R Block, Jackson Hewitt, or Liberty Tax franchises-they have too much employee turnover to be there for you year-after-year). Good Luck!

You do not need a business license. If you are not incorporated or a partnership then you file a Schedule C with your business income and expenses and the final figure (positive or negative) goes onto your 1040 with your other income items.

No, you don't need a business license, but you do need to keep meticulas records in case you get audited.

Check your IRS forms when they come in the mail or the website below.

If you have not established a corporation or some other type of company (llc) you wont need to file a seperate tax form. You will only have to declare the profit from the art. So basically you are going to be taxed on 700 dollars.

Your city may require you get a business license unless are an amateur supporting a hobby. You look a bit beyond that but not quite all the way to prosperous.