Explore All Topics

I have a small business through which I host at-home parties, catalog parties and online parties to sell products to friends, family and other acquaintances. Because I am new to running a business of this nature, I need to know about the tax reporting ramifications of income I earn from my venture. How much can you sell before paying tax on your earnings — How much do I have to make by selling products at these home parties and similar channels before it is mandatory to file taxes and report the income?

1 min read


1 min read


Generally, you are considered to be self-employed if any of the following apply to your situation: you carry on a trade or business as a sole proprietor or an independent contractor, you are a member of a partnership that does or you are otherwise in business for yourself, this includes part-time business pursuits as well. Regarding you question, how much can you sell before paying tax on your earnings, as a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly. You must file a return if you earn $400 or more in net earnings from your business. Net earnings equal taxable business income minus allowable business deductions.

Was this topic helpful?