Taxes for WhatNot Content Creators: What You Need to Know

If you’ve turned your love for selling on WhatNot into a thriving side hustle or even a full-time gig, congrats! But as your sales grow, so does your responsibility to stay on top of taxes. Don’t worry — taxes for WhatNot content creators don’t have to be overwhelming. Let’s break it all down so you can focus on running your WhatNot business without any stress.

What Counts as Taxable Income?

When you’re selling on WhatNot, any money you earn is considered taxable income. This includes:

• Sales Revenue: The total profit you make from selling items.
• Shipping Income: If you charge buyers for shipping and it exceeds your actual shipping costs, that’s income too.
• Other Earnings: Promotions or bonuses you might receive through the platform.

It doesn’t matter if you’re selling vintage collectibles, sneakers, or handmade crafts — the IRS considers this income taxable. 

Tracking Expenses: Your Secret Weapon 

The good news is you can deduct business expenses to reduce your taxable income. For WhatNot creators, some common deductions include:

• Inventory Costs: The amount you spend purchasing items to sell.
• Shipping Supplies: Boxes, tape, labels, and other packaging materials.
• Platform Fees: Any fees WhatNot charges for using their platform.
• Home Office Deduction: If you use part of your home exclusively to manage your WhatNot business, you may be eligible for this deduction.
• Use of Your Car: If you drive to thrift stores, garage sales, or the post office for business use, you may be able to deduct mileage or other expenses related to your car. Parking fees and tolls may also be deductible.

Keep detailed records of these expenses, including receipts, invoices, and any related documentation. Staying organized now will make tax season so much easier. 

Quarterly Estimated Taxes: A Must for Sellers 

Because WhatNot creators are self-employed, taxes for WhatNot content creators aren’t automatically withheld from your income. That’s where quarterly estimated taxes come in. If you expect to owe $1,000 or more in taxes for the year, the IRS expects you to make quarterly payments. These cover your income tax and self-employment tax (which includes Social Security and Medicare).

Missing these payments can result in penalties, so it’s important to stay on top of them. 

Forms You Need to Know About

As a WhatNot seller, you’ll need to file a few specific tax forms:

• Form 1040: Your individual income tax return.
• Schedule C: This is where you report your income and expenses from your WhatNot business. (Schedule C is a subsection of the Form 1040)
• Schedule SE: This calculates your self-employment tax.
• 1099-K: If you earn more than $600 in gross sales through WhatNot, they’ll send you a 1099-K. If you sell through other platforms or payment processors, too, you may receive 1099-K forms from them. 1099’s are sent to both you and the IRS. So if you receive a 1099, the IRS did too and they expect you to report it.

Even if you don’t receive any 1099-K forms, you’re still required to report all your income.

Simplifying Tax Season 

Taxes don’t have to be complicated. Here are some tips to help you stay organized and stress-free:

1. Try Accounting Software: Tools like QuickBooks Online can help you track your income, expenses, and quarterly tax payments.
2. Use a Separate Bank Account: Keeping your personal and business finances separate makes tracking everything so much easier. Making the small decision to use your separate bank account for business expenses can save hours of headaches at the end of the year!
3. Put Aside Money for Taxes: Save 25-30% of your gross income to pay your taxes.
4. Consult a Pro: If you’re unsure about deductions or quarterly payments, a professional can guide you through it. (And, yes, that is a shameless plug for the help we offer content creators just like you.)

Don’t Forget About State and Local Taxes 

In addition to federal taxes, you may also owe state income taxes. WhatNot collects and remits the sales tax on items you sell based on where the buyer is located, but you may need to provide documentation about sales tax, so brush up on the reporting requirements for your state so you stay in compliance. 

Conclusion

Taxes for WhatNot content creators might not be the most glamorous part of the job, but they’re essential. With a little planning and preparation, managing your taxes will become just another part of your routine. Want to skip the hassle altogether? Book a call with us today and let us handle the taxes while you focus on growing your business!