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FOR ARTISTS
Selling Art & Taxes 101
What you need to know about reporting income, 1099-K thresholds, and deductions — in plain language, not legalese.
Not tax adviceThis guide is for general informational purposes only. Tax rules change, and everyone's situation is different. For anything beyond the basics, talk to a tax professional — ideally one who has experience with self-employed artists or freelancers.
The basics: selling art is self-employment income
When you sell artwork — whether it's a painting, a digital piece, a print, or anything else — that money is income. It doesn't matter whether you sold it through a gallery, a website, social media, or in person. It counts.
As a self-employed artist, you're responsible for reporting that income on your taxes. This is true even if no one sends you a tax form and even if the amount feels small.
The rule of thumb
If you earned more than $400 in net self-employment income in a year, you're generally required to file a Schedule C and pay self-employment tax. This applies even if you also have a regular job with a W-2.
What is a 1099-K and when do you get one?
A 1099-K is a tax form that payment platforms (PayPal, Venmo, Cash App, Stripe, etc.) are required to send you when you receive payments above certain thresholds. It reports gross payment volume — not your profit.
The threshold has changed a lot recently. As of 2024–2025:
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Federal threshold: $5,000 (transitional)
The IRS has been phasing in a lower threshold. The current transitional threshold is $5,000 in gross payments. This is expected to drop to $600 eventually — check IRS.gov for the current year's rule.
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State thresholds vary
Some states have lower thresholds or their own 1099-K rules. Georgia follows federal rules for now, but worth checking if you're in another state.
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Getting a 1099-K doesn't change what you owe
You owe tax on your net profit regardless of whether you receive a 1099-K. The form is just reporting — not a bill.
Important: 1099-Ks report gross payments — meaning the total you received before fees, refunds, or expenses. You don't owe tax on the gross amount. You owe tax on your profit (income minus expenses).
What counts as a deductible expense?
As a self-employed artist, you can deduct ordinary and necessary business expenses from your income — which reduces how much you owe. Common deductible expenses for artists include:
- Art supplies and materialsCanvas, paint, brushes, digital tools, styluses, tablets — anything you use to make art.
- Software and subscriptionsAdobe Creative Cloud, Procreate, Clip Studio, or any other tool you use to create or sell your work.
- Platform and payment feesIf PayPal or Stripe takes a fee when you receive payment, that fee is deductible.
- Shipping and packagingBoxes, mailers, packing materials, postage — all deductible when you're shipping sold work.
- Home studioIf you work from a dedicated space at home, you may be able to deduct a portion of your rent or mortgage. This one has specific rules — look up the "home office deduction" or ask a tax pro.
- Professional developmentClasses, books, workshops related to your art practice.
- Marketing and website costsAny costs related to promoting your work or maintaining a website.
Keep receipts. Seriously. A simple folder — physical or digital — for art business expenses will save you real time and money at tax season.
Quarterly estimated taxes
If you expect to owe $1,000 or more in taxes for the year, the IRS generally requires you to pay estimated taxes quarterly — in April, June, September, and January. Missing these payments can result in a penalty.
This catches a lot of new self-employed people off guard. If art sales are starting to add up, it's worth setting aside roughly 25–30% of your net profit as you go, so you're not surprised at tax time.
Quarterly due dates (approximate)
Q1: April 15 · Q2: June 15 · Q3: September 15 · Q4: January 15
What to actually do
- Track every saleA simple spreadsheet works fine — date, amount, what sold, who paid you.
- Track every expenseSame spreadsheet, different tab. Save receipts.
- Separate your money if you canEven a separate checking account for art income makes bookkeeping much easier.
- File a Schedule CThis is the form self-employed people use to report business income and expenses. Most tax software (TurboTax, FreeTaxUSA, etc.) walks you through it.
- Look into free filingIf your income is below a certain threshold, you may qualify for free tax prep through the IRS Free File program or VITA (Volunteer Income Tax Assistance).
