How do I charge sales tax at a craft show?

Your vendors should collect sales tax at the location’s combined sales tax rate. That is the state rate + county rate + city rate + any other special taxing district rates. Keep in mind that some states may not have local rates, and some may not even have a sales tax at all.

How much can you claim as a hobby before paying tax?

$3,040 is the amount of hobby expenses you can deduct as an itemized deduction provided you had at least $4,000 in hobby income.

How is hobby income reported?

If the activity is a hobby, you will report the income on Schedule 1, line 8 of Form 1040. The income won’t be subject to self-employment tax. Because of a change made as part of tax reform, you won’t be able to deduct expenses associated with your hobby. You won’t be able to claim the home office deduction.

How do I report hobby income on my taxes?

Do craft fair vendors need to pay sales tax?

Most craft fair event organizers understand the complexities of sales tax (and probably receive a lot of questions from their vendors) so they will likely provide all the information to their vendors that they will need about remitting sales tax in that state. In some states, they are required to provide that information.

Do you have to pay sales tax on items sold at events?

Vendors at special events, craft shows, trade shows, etc. are required to register with the state and collect and remit state and local sales tax. Temporary vendors are required to file sales and use tax returns, even if the event organizer collects and remits all sales tax revenue to the Department of Revenue.

Do you need a license to sell at a fair in Michigan?

Temporary vendors are required to obtain a temporary license and collect a 6\% or 9\% sales and use tax for sales at events like craft shows and fairs. Vendors making retail sales at more than two events in Michigan per year are required to register for sales and/or withholding taxes.

Do I need to collect sales tax when selling at flea markets?

If you sell at craft fairs, flea markets, and similar events, you should probably be collecting sales tax. Most states require sellers — even temporary or transient vendors from another state — to register with the state and collect and remit tax on sales of taxable goods and services.