How is Etsy POD income taxed with Printify when Printify bills my bank account?

Hi! In the U.S., you generally report gross sales from your Etsy orders as your business income, then deduct Etsy fees and Printify’s product/shipping charges as business expenses (or Cost of Goods Sold). You don’t get taxed on “payouts” specifically—you get taxed on your net profit, but the way you arrive at that net profit is by starting with gross receipts and subtracting allowed deductions.

A practical way to think about it for an Etsy POD shop (Schedule C style bookkeeping):

• Income (gross receipts): the total your customers paid for the items (and any shipping you charged). This is typically the “gross” number Etsy reports (often via a 1099-K, if you receive one).
• Expenses / deductions:
  • Printify charges for the blank/product + printing + Printify shipping = usually treated as Cost of Goods Sold (COGS) or “Purchases/Materials” (how you categorize can vary, but it’s deductible either way if it’s an ordinary business cost).
  • Etsy fees (transaction fees, payment processing fees, listing fees, Etsy Ads, etc.) = deductible business expenses.

So even though Etsy deposits “sales minus Etsy fees” into your bank and Printify pulls money out separately, tax-wise you still usually track it as gross sales in, expenses out, which results in net profit—and that net profit is what’s taxable (income tax, and usually self-employment tax if you’re a sole proprietor).

Two quick “gotchas” to keep you from over-reporting:

• Sales tax: In many situations Etsy collects and remits sales tax for you. Amounts Etsy collects/remits as sales tax generally aren’t your income (since you don’t keep them). Just make sure your bookkeeping isn’t accidentally counting sales-tax-only amounts as revenue.
• Shipping: If you charge the buyer shipping, that’s generally income; the shipping you pay Printify is generally an expense/COGS.

If you want, tell me whether you’re a sole proprietor (Schedule C) and whether Etsy is collecting/remitting sales tax on your orders (typical in the U.S.), and I can suggest a clean set of bookkeeping categories that matches how Etsy + Printify money actually moves in your bank account.