At what point (if any) does one make the distinction between WAH and having a hobby that happens to bring in a little bit of cash? I can't imagine paying any real bills by making hair bows.
"If you can't annoy somebody with what you write, I think there's little point in writing."-- Kingsley Amis, British novelist, 1971 t .
For me, it was the point where I received an actual contract for the work I did.
Why hide your light under a bushel of bears, I ask you?
I've also wondered what is *lucrative*.
I suppose the distinction is profit, or income based on your time.
I've seen a lot of crafts that are priced just barely over the cost of supplies. It's really difficult to compete with retail. Check out the huge price range on sites like etsy.com. Some seem to reflect labor in the price of their items, while others just seem to want to work for free to feed their craft habit. I am on a mission to crochet each of the elder women in my family an afghan this year as gifts for holidays, birthdays, etc., and sometimes I wonder why I bother when I could just order a few of those $30-$40 pieces and call it done! I spend that much for one afghan buying the cheapest no-frills yarn from discount craft stores, usually by painstakingly making a daily stop to purchase one skein at a time with a 50% off coupon!
I belive that, technically, there is no minimum at which IRS deems profit non-taxable. All profit is taxable. If you make a hair bow for the cost of $4 and sell it for $6, the $2 profit is reportable and taxable.
However, it is unlikely that the IRS is going to come after you for selling $20 bows at a $2 profit. ($40 total).
"hobby-ers" should also keep in mind that it isn't the "income" that's taxable, but the profits, which means all expenses are deductible.
And, things you already own that you sell? Like the baby clothes your daughter wore 10 years ago, or the pottery that's been cluttering up your dresser for 3