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You will not be allowed to deduct a loss from other sources of income. Figuring Deductions To deduct business expenses, you or your accountant will fill out a 1040 tax form (not 1040EZ) and prepare a Schedule C, which is a separate form used to calculate profit or loss from your business. The income (or loss) from Schedule C is then reported on the 1040 form. In regard to business expenses, the standard deduction does not come into play as it would for a hobbyist. The total of your business expenses need not exceed the standard deduction.

There is a shorter form called Schedule C-EZ for self-employed people in service industries. It can be applicable to those who have receipts of $25,000 or less and deductible expenses of $2,000 or less. Check with your accountant to see if you qualify. Deductible expenses include advertising costs, brochures, business cards, professional group dues, subscriptions to trade journals and magazines, legal and professional services, leased office equipment, office supplies, business travel expenses, etc.

To make things more complicated, everyone uses social media in very different ways. A good way to find the best combination of social media engagement is to follow the leaders in your craft genre. Maybe they use personal profiles on Facebook and a beefed up Pinterest presence. Maybe they are all about Instagram and Twitter. Follow the leader until you find a good rhythm, and don’t be afraid to experiment. And be prepared to invest significant time into some social media outlets that eventually end up fizzling out.

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Annual Collection 2001 (OrigamiUSA Annual Collections) by OrigamiUSA

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