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Question
Friend sold some items on Etsy. Received a check and 1099 for the sale amount minus the commission. What forms must be filed that takes the cost of selling the items into account so she pays taxes on the gain only? Thanks
Answer

Great question! Your friend would use Form Schedule C, which will automatically generate on the Keeper Tax app. Schedule C will allow her to report her gross sales and the related commission expense so that she only gets taxed on the gain.

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Sarah York, EA

Sarah is a staff writer at Keeper Tax and has her Enrolled Agent license with the IRS. Her work has been featured in Business Insider, Money Under 30, Best Life, GOBankingRates, and Shopify. She has nearly a decade of public accounting experience, and has worked with clients in a wide range of industries, including oil and gas, manufacturing, real estate, wholesale and retail, finance, and ecommerce. Sarah has extensive experience offering strategic tax planning at the state and federal level. During her time in industry, she handled tax returns for C Corps, S corps, partnerships, nonprofits, and sole proprietorships. Sarah is a member of the National Association of Enrolled Agents (NAEA) and maintains her continuing education requirements by completing over 30 hours of tax training every year. In her spare time, she is a devoted cat mom and enjoys hiking, baking, and overwatering her houseplants.

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