Think like a businessperson, or you will be in a constant state of hobby for the rest of your life. The IRS doesn’t like that…and you shouldn’t, either. First of all, if you make money from a hobby, you must report it just the same…so why not treat your online selling as a business, which is what it is anyway. Owning a business has its plusses just in dignity alone. Your business card should not say “stay-at-home hobbyist.” It should say “online merchant”, at the very least. If you handle your online selling as a business, you can deduct expenditures such as a portion of your home mortgage or rent, utilities, computers, laptops, and iPads as well as your cell phone, etc. If you don’t treat your business like a business, how can you grow it? You will never know where you stand. Go for it!