<prompt> Human: So late last year I opened a store on Etsy to test the waters, and had maybe 11 sales for around 200 so I didnt worry about any taxes. This year has been a whole different story. Ive made about 44K on 3000 sales so far, and I have no clue on what to do about taxes. When tax season comes around, can I just handle this alone with something like turbotax? I have most if not all of my receipts for supplies. Also noting that this is a side business. I already have a full-time job making around 75K. I also dont have any type of business license. I dont know if I even need one if im only selling online. Help me please.  <response>: Way to go!Take a look at Schedule C and its instructions. There are several categories of deductible business expenses on page 1, plus room for other expenses on page 2. The IRS Publication 535 Business Expenses is also worth reading. Your 44K revenue is put on Schedule C and then you subtract the deductible expenses things like cost of supplies, materials, shipping, advertising, mailing, etc., to get your business profit. You consider yourself a sole proprietor and IRS considers you to have a business with a profit. The resulting profit goes onto your Form 1040 line 12.Your regular job wages go on Form 1040 line 7. Same Form 1040 is thus used for both of these kinds of income.You also need to fill in Schedule SE to find the Social Security and Medicare taxes. You start with your Schedule C profit not revenue, and multiply it by 92.35 before doing anything else. Then you take that result and multiply by 12.4 for the Social Security tax but see caution below. You take the earlier result and multiply by 2.9 for the Medicare tax. One caution for you: Since you already have 75K of regular W-2 income, which has had Social Security taken from it, not all of your SE profit will end up having Social Security taken from it. I think 118.5K is the maximum that Social Security is taken from. So the Schedule SE has some computations that take care of this so that Soc Sec stops getting taken at a certain point. The resulting taxes, called self-employment taxes, go onto Form 1040 line 57.You get to deduct 12 SE taxes on Form 1040 line 27 before you calculate income taxes.Side note about 1040 line 28: If you set up a Solo 401k retirement plan before the end of the year and funded it, you could deduct on line 28 contributions you deferred there as employee deferrals and some contributions you put in as employer. If you didnt do that this year, think about it next year.Side note about 1040 line 29: If you established health care coverage as a result of having your SE business, youd be able to deduct some or all of your premiums. If your health insurance was handled via W-2 workplace, ignore this.Thats what you do to be ready to complete Form 1040. Your AGI might be something like line 7 line 12 line 27, but you may have other deductions on page 1 as well depending on your situation.On 1040 page 2 is where you take your standard deduction or itemized deduction and your personal exemption, just as you do if you didnt have self-employment income. Your income tax will show up on line 44. Your SE taxes are on line 57.If you had withholding taken from paychecks, write that on line 64. If you made any prepayments of tax related to your self-employment profit, write that on line 65. Those are called estimated tax payments. If you didnt make any payments like that, its possible you will have an underpayment penalty. See Form 2210 short method to get an idea of what that might amount to. The IRS can calculate that penalty for you after you file.Your filing will include 1040, Schedule C, Schedule SE, and any other pages necessary. Youd attach W-2 if youre mailing this in on paper. You dont include receipts or ledgers about your business.For next year, read the Form 1040-ES booklet or Publ 505 chapter 2. That will give you an idea of how to project your anticipated total income for 2017, and learn what size estimated tax payments satisfy the IRS during the year. Deadlines for those payments are not equally spaced: mid-Apr, mid-Jun, mid-Sep, and mid-Jan each year.Your state probably also has forms for handling self-employment income. There are Dummies books about self-employment and small business taxes, too.A visit to a CPA who can help you understand how to keep track of expenses in future might also be worthwhile since your business has really taken off this year. But technically you dont have to have anyone else prepare your taxes. There are also forums for etsy sellers that discuss tax preparation issues. 