I earn a very small amount of money (around 2k) doing side gigs. I am required to have a local business license. Do I need to declare a business on my federal return?

[Crunchy409]

I would obviously list the income regardless- just not sure if it helps or hurts me in some way or other to list it as a business.  thanks!

[HelenC12 · Accepted solution]

Yes, you have to declare it on your federal and state income tax returns, as a business per IRS rules. 

Use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if:

• Your primary purpose for engaging in the activity is for income or profit.
• You are involved in the activity with continuity and regularity.

Please see Where do I enter Schedule C?

[Crunchy409]

Thank you!