Updated October 23, 2026. Quick answer: The 2025 chart has no row named for crafts or Etsy. The closest wording depends on the product: it lists 459120 for hobby, toy and game retailers, 459130 for sewing and needlework, 459420 for gifts and novelties and 459510 for used merchandise. The code goes on line B, and the principal source of receipts decides which row reads closest.
Rows on the chart that sit close to handmade goods
People who make and sell crafts online often search for a code with their platform or their craft in the name. The chart is organized by activity, and these are the retail rows whose wording comes nearest to common craft products.
| Code | Wording on the IRS chart |
|---|---|
| 459120 | Hobby, toy, & game retailers |
| 459130 | Sewing, needlework, & piece goods retailers |
| 459420 | Gift, novelty, & souvenir retailers |
| 459510 | Used merchandise retailers |
The manufacturing section of the chart has one catch-all row too: “Other miscellaneous mfg.”. Its wording is general, so it matches work described as making goods rather than selling them.
How the form asks for your shop
Line A asks for a description of the work: “Describe the business or professional activity that provided your principal source of income reported on line 1.” Line B asks for the code: “Enter on line B the six-digit code from the Principal Business or Professional Activity Codes chart” The code goes in the box on line B, beside the description.
An example of the kind of description, not IRS wording: a line A phrase naming the goods you make, such as knitted items or printed cards, and how you sell them. The craft itself belongs in that sentence, because the code on line B can only carry the chart’s product wording.
Why selling online does not change the row you read
Online craft shops are nonstore sellers in the chart’s sense. The instructions say “For nonstore retailers, select the PBA code by the primary product that your establishment sells.” The note on the chart adds: “Retailers should select the PBA associated with their primary line of products sold.” The platform where the shop lives is not part of either sentence.
The chart has no row that names Etsy, crafts, handmade goods or artisans, so no row is a match by name. The reader weighs the product wording against the primary product line.
When making and selling blend together
A seller who makes the goods and sells them may find both a retail row and the manufacturing row in play. The chart’s rule is about the source of receipts.
The chart’s rule has two steps: “Select the category that best describes your primary business activity”, and then “Then select the activity that best identifies the principal source of your sales or receipts”.
A shop whose main product is sewing and needlework items would read “Sewing, needlework, & piece goods retailers” first, while a shop built around gifts would read “Gift, novelty, & souvenir retailers”. Someone reselling secondhand craft supplies would find “Used merchandise retailers” closer. Where the same owner runs unrelated shops, the instructions say: “If you owned more than one business, complete a separate Schedule C for each business.”
Where to go next
The code sits on line B next to the line A description on Schedule C (Form 1040). Sales from the shop go in Schedule C line 1, gross receipts or sales, and a maker of goods may also read about Part III, cost of goods sold. Marketplace payments that arrive on an information return are covered at the Form 1099-K threshold page.
Edition and chart year
This page reads the 2025 Schedule C (Form 1040) and its 2025 instructions, the current files irs.gov served on 2026-10-23 (byte-identical to the archived copies). They are the files for the tax year 2025 return, filed in 2026. The schedule says “Attach to Form 1040, 1040-SR, 1040-SS, 1040-NR, or 1041”. Check the tax year printed on the schedule you are filling in and use the chart that comes with that year’s instructions, because a different year’s chart can list different codes or reword them.
Common mistakes
- Searching the chart for the word Etsy or craft. No row carries either word, so the wording of the product rows is what you compare.
- Reading the manufacturing row as the default for every maker. The row reads “Other miscellaneous mfg.” and is broad.
- Choosing by the platform. The nonstore sentence says “For nonstore retailers, select the PBA code by the primary product that your establishment sells.” and the platform is not mentioned.
Related: Schedule C (Form 1040), Schedule C line 1, gross receipts or sales, Part III, cost of goods sold, and the Form 1099-K threshold page.
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Answer againSources
- Instructions for Schedule C (Form 1040), Profit or Loss From Business (2025): https://www.irs.gov/pub/irs-pdf/i1040sc.pdf
- Schedule C (Form 1040), Profit or Loss From Business (2025): https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
Read from the IRS documents linked above on October 23, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.