Reporting 1099-Misc under Hobby or Miscellaneous Income instead of Business Income?

[Flutesss]

Help! I'm using TT Premier. My husband paid over $3400 to a publishing company to edit and publish a book in 2021. He is NOT running a business or doing any marketing. This was a one-shot deal as he wanted to tell his story for his personal satisfaction; he has no intentions of continuing to write. The publishing company sold a few books through Amazon in 2022, and we received a 1099-MISC for $124. When I put that into Turbo Tax, it generates a Schedule C, they want a business name, want to know his accounting method, etc., etc.... Argh! He is not a business and never will be.

Can I just enter this $124 as a hobby or "other misc income" to prevent all the self-employment forms from being generated? It's not even a profit if we take into consideration what he paid to the company the year before. But I don't even care if we pay taxes on it. I just want this to be simple.

Thanks in advance for any insight you can give!

[TomK2023]

Enter this Miscellaneous Income:

1. Click on  Federal tab.
2. Click on Income & expenses.
3. Scroll down to Less Common Income.
4. Click on Start or Update button Miscellaneous Income, 1099-A, 1099-C
5. On the next screen (Let's Work on Any Miscellaneous Income), click the Start or Update button for Other reportable income.
6. Did you receive any other taxable income.  Click Yes.
7. Other Taxable Income, enter a description (e.g., Hobby Self-Published Book) and the amount.  Click Continue.
8. Click Done.

The income will be reported on Schedule 1 line 8 (z) with the description that you entered. 

[Flutesss]

Thank you for your reply!

When I click "Misc Income 1099-A, 1099-C", it takes me to a page where I must choose yet another category. The only one that comes close is hobby. Is that ok even though we received a 1099-MISC?

If I proceed in the hobby category, it asks for income --  then asks for expenses. Can I put in the $3400 in money paid to the publisher even though it was paid in 2021?

I just don't want to get audited over a crazy $124 1099-MISC. 

[DianeW777]

There is no concern for audit. You can use hobby income if you choose.  The expenses will not be allowed as a deduction against hobby income.  

Hobby or Other Income are both acceptable entries for this income.

Hobby Income:

To enter hobby income and expenses in TurboTax please follow these steps:

• Once in your tax return, click on Federal Taxes tab
• Choose Wages and Income
• Scroll down to Less Common Income and click Start to to right of Miscellaneous Income, 1099-A, 1099-C
• Click Start to right of Hobby income and expenses

Other Income:

Go to the Wages and Income  section of TurboTax

1. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
2. Scroll to the bottom of the list to Select Other reportable Income > Enter a description (Book Sales) and the amount

[Flutesss]

Thank you so much for your time and advice!!