# Tax readiness checklist for home-based makers (starting point)

Homewaala does not process payments -- you settle with buyers directly
(Zelle, Venmo, cash, or in person), so nothing here is Homewaala-specific
tax advice, and this isn't a substitute for a real tax professional. It's a
starting point to help you get organized, with links to the actual official
sources rather than a Homewaala-made copy of any government form.

## Get organized
- [ ] Keep a simple running log of what you sold, to whom (or at least the
      date/amount), and what it cost you to make -- a spreadsheet is enough.
- [ ] Keep receipts for ingredients, supplies, and any equipment you buy for
      your home business.
- [ ] Set aside a rough percentage of your sales for taxes as you go, rather
      than trying to find it all at filing time.

## Know the basics (confirm current details on the official sites below)
- [ ] Your selling income is generally taxable regardless of whether you
      receive a 1099-K -- the reporting-threshold question is separate from
      whether the income itself is taxable.
- [ ] If you're a sole proprietor, business income/expenses are typically
      reported on **Schedule C** with your federal return -- see the IRS's
      own instructions, not a summary here.
- [ ] California sellers of tangible goods may need to check whether a
      **seller's permit** from the CA Department of Tax and Fee
      Administration (CDTFA) applies to what you sell.

## Official sources (not Homewaala's interpretation)
- IRS Schedule C (Form 1040) and instructions: https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
- IRS guidance on Form 1099-K: https://www.irs.gov/businesses/understanding-your-form-1099-k
- CDTFA seller's permit information: https://www.cdtfa.ca.gov/taxes-and-fees/faqseller.htm
- IRS Small Business and Self-Employed Tax Center: https://www.irs.gov/businesses/small-businesses-self-employed

---

Talk to a real tax professional about your own specific situation -- this
checklist is only meant to help you walk in prepared, not to replace that
conversation.