Yes, you are required to report any business income and then use any expenses ordinary and necessary to receive that income. This is considered self employment under the tax law whether or not you have registered the business activity.
Unless you are using a fictitious name (not your own name, first or last or both) and/or establishing a business address there may not be any registration process required. It depends on your locality. This will require an upgrade to TurboTax Self Employed online (you can walk right through this upgrade) or TurboTax Deluxe desktop CD/Download version. TurboTax Products
& Pricing
The IRS
language states you must be engaged in the activity to produce a
profit. It is reasonable to have a loss on the overall business in the
first couple of years while you gain momentum. The rule they use is three
years of profit out of every five consecutive year period
.
TurboTax online version:
1. Sign into your account and select your current return.
2. Select My Account on the top right and then select Tools
3. Select Topic Search (see attached image)
4. Search for business and select Go
5. Select Edit next to your business
6. Update the income, then proceed to other areas as needed.
TurboTax desktop version:
1. Search box in the upper right
2. Search for business, schedule c
3. Jump to business. schedule c
4. Continue to Edit or Start your business
5. Update the income and any other section of the business return.
