Thrifty Bill got it right. Just keep modest records on a spreadsheet with estimates, and you can whittle down the gross 1099 effect to almost no tax impact. The IRS really cares less about somebody with a sole1099 under $50k. It's when somebody receives a bunch. Or fails to report anything on their return. Easy to report using Turbo Tax. Oh, and I'm a CPA. I seem to recall a hobbyist sells a low dollar amount total. Even then, I can't imagine shipping costs not being deductible on Schedule C. (Do not use the self-employment IRS form!)