13 replies to this topic

[~Boba the Hammy~]

Hey everybody!

 

I've recently started selling custom wooden hamster accessories. I currently only ship to the US. They're pretty cheap and can be customized to whatever shape/size/height/color you need. The wood is formaldehyde free and perfectly safe for hamsters and the dowels are birch wood. I've attached some pictures below, these are some examples of things I've made. More info about shipping, ordering, and pricing can be found on my instagram, @fatpotatcreations. Thanks so much and checking out my account. Not even necessarily buying anything, but just following/liking/viewing would mean a lot to me!

 

Pictures:

[Iszie]

Oh my gosh I need some - they look so good! Only problem is… I live in the uk haha.

[Sparrow]

Absolutely gorgeous, if I lived in the US I could absolutely see myself ordering a whole bunch!

[ChloesCritters]

These look lovely! except i live at the other side of the world...

[Lillias]

Good luck in your new venture!

 

Be sure to keep track of finances for taxes (and it's good to keep an eye on income vs. expenses anyway).

[Kikya]

Good luck in your new venture!

 

Be sure to keep track of finances for taxes (and it's good to keep an eye on income vs. expenses anyway).

While it's true that he should keep track of income and expenses, unless she's earned more than $12,400 in a year, she doesn't owe/need to file taxes. A dependent child doesn't owe taxes and the only reason for a dependent to file a tax return is because when you have a job, they take out federal/state taxes automatically and they can get those back.

 

But most people don't bother because their parents claim them on their taxes anyway. If you file a return and claim yourself, as a child, you could really hurt your parents tax returns so I wouldn't do anything without talking to them first. Basically, the amount you would get back is tiny in comparison to how much credit your parents get for claiming you. It can affect their tax brackets and income for the year.

[Lillias]

While it's true that he should keep track of income and expenses, unless she's earned more than $12,400 in a year, she doesn't owe/need to file taxes. A dependent child doesn't owe taxes and the only reason for a dependent to file a tax return is because when you have a job, they take out federal/state taxes automatically and they can get those back.

 

But most people don't bother because their parents claim them on their taxes anyway. If you file a return and claim yourself, as a child, you could really hurt your parents tax returns so I wouldn't do anything without talking to them first. Basically, the amount you would get back is tiny in comparison to how much credit your parents get for claiming you. It can affect their tax brackets and income for the year.

There has been a tax reporting change that was implemented this year (so we haven't yet seen how it will play out). If someone receives more than $600 (gross) in a year through a payment processor (such as Paypal, Ebay, or Etsy), the payment processor must submit a 1099 to the IRS reporting that money. This does not necessarily mean that taxes are owed, but that money needs to be accounted for on a tax return. For a minor, it may be easiest for the parents to include this form when filing their own taxes (so it doesn't mess with the dependent deduction, as you said), especially if they are the legal owners of the account that money is passing through.

 

Self-employment tax starts at $400 (net). The internet seems divided on whether or not SE tax affects minors. Minors don't normally pay social security and medicare taxes. This could come into play if the payments are coming into an account belonging to an adult because the 1099 (if there is one) will be issued to the owner of the account.

 

States have their own rules, so I won't get into that.

 

 

In any case, it's better to keep track of all the financials from the start and find out you don't need to file taxes, than it is to get a 1099 you weren't expecting and have to scramble to get your ducks in order.

[Kikya]

There has been a tax reporting change that was implemented this year (so we haven't yet seen how it will play out). If someone receives more than $600 (gross) in a year through a payment processor (such as Paypal, Ebay, or Etsy), the payment processor must submit a 1099 to the IRS reporting that money. This does not necessarily mean that taxes are owed, but that money needs to be accounted for on a tax return. For a minor, it may be easiest for the parents to include this form when filing their own taxes (so it doesn't mess with the dependent deduction, as you said), especially if they are the legal owners of the account that money is passing through.

 

Self-employment tax starts at $400 (net). The internet seems divided on whether or not SE tax affects minors. Minors don't normally pay social security and medicare taxes. This could come into play if the payments are coming into an account belonging to an adult because the 1099 (if there is one) will be issued to the owner of the account.

 

States have their own rules, so I won't get into that.

 

 

In any case, it's better to keep track of all the financials from the start and find out you don't need to file taxes, than it is to get a 1099 you weren't expecting and have to scramble to get your ducks in order.

Well, that's what I said, she doesn't owe taxes (as she's a minor) and she shouldn't be filing a tax return because her parents will include her income in theirs. I have 4 children and I do have to include their earned income in my taxes from time to time. Then I usually give them back whatever money was taken out by the federal/medicare taxes out of my return.

 

There are only very certain times that a minor would owe any kind of taxes because by and large, they don't own their own accounts. Legally, most of them can't even own a bank account in their own name without their parents being the primary. The 1099 wouldn't be issued to them.

 

I actually messed up my father's tax return when I was a kid because I tried to file my own taxes and we had to go back and make the edits. So the lesson to the kiddos is don't do anything on taxes until you talk to your parents. If you get a weird form in the mail, take it to them. lol

[Lillias]

Well, that's what I said, she doesn't owe taxes (as she's a minor) and she shouldn't be filing a tax return because her parents will include her income in theirs. I have 4 children and I do have to include their earned income in my taxes from time to time. Then I usually give them back whatever money was taken out by the federal/medicare taxes out of my return.

 

There are only very certain times that a minor would owe any kind of taxes because by and large, they don't own their own accounts. Legally, most of them can't even own a bank account in their own name without their parents being the primary. The 1099 wouldn't be issued to them.

 

I actually messed up my father's tax return when I was a kid because I tried to file my own taxes and we had to go back and make the edits. So the lesson to the kiddos is don't do anything on taxes until you talk to your parents. If you get a weird form in the mail, take it to them. lol

 

If a 1099 is issued, you cannot simply ignore it. If it's issued in the name of an adult, it is even more important to have the records to show that not all of it is taxable income (and possibly none of it is taxable). What I'm not sure about is if there is an option to declare it as the income of a minor, even though it's in the name of an adult; or if a Schedule C would be needed.

 

But yeah, generally minors shouldn't be filing their own separate tax returns, unless they are independent from their parents or earning loads of money.

(To clarify for those who haven't filed taxes before, each person can only be counted once. So a minor can either be counted on their guardians' tax return or they can file their own tax return, not both.)

 

If we're sharing funny tax filing stories . . . when I was 18 and filing my first tax return, I had my dad help me. It was only some time after it was submitted that I realized - he put my name in wrong!

[Kikya]

If a 1099 is issued, you cannot simply ignore it. If it's issued in the name of an adult, it is even more important to have the records to show that not all of it is taxable income (and possibly none of it is taxable). What I'm not sure about is if there is an option to declare it as the income of a minor, even though it's in the name of an adult; or if a Schedule C would be needed.
 
But yeah, generally minors shouldn't be filing their own separate tax returns, unless they are independent from their parents or earning loads of money.
(To clarify for those who haven't filed taxes before, each person can only be counted once. So a minor can either be counted on their guardians' tax return or they can file their own tax return, not both.)

If we're sharing funny tax filing stories . . . when I was 18 and filing my first tax return, I had my dad help me. It was only some time after it was submitted that I realized - he put my name in wrong!

If the 1099 is in the parents name, the parents would just file it under their return. But if it does happen to come in the child's name for some crazy reason. You basically add the dependent and then there's usually an option to state whether or not that minor had any income for the year and what kind of income it was.

I usually only do this for when my kids work a real job and have taxes taken out that they want to get back. I can't think of too many situations where a 1099 came to a minor since like I said, they have to have their parents primary on everything. I did have one 1099 where both of our names was on it but mine was first. Not sure why they even bothered to put his name on it lol. I think they were confused.

Omg your dad missing spelling your name is hilarious. Lol

Funny tax story, I always lived in a state with no income tax so I never filed a state return until I was an adult. Apparently, I did it wrong the first time and 5 years later, they came back and audited me and charged me taxes. I was livid lol

[~Boba the Hammy~]

Adults in this thread, my business is purely because i 1) like sawing wood and 2) like to provide people with better supplies lol, i expect to earn less than $200 a year so don't worry about taxes

[ajuniceu~]

"like sawing wood" xD

 

I'd love to order but with exchange rate and border cost it would be way too expensive for me, sorry

[Kikya]

Is there any way I can see your stuff without instagram? I don't have any social media accounts.

[Happyhammies26]

Ohh, I need some. Will be getting some when I have room in my hamsters cage! Good job!