rjs
Level 15
Level 15

Get your taxes done using TurboTax

You enter the entire $2,000 as business income (same as self-employment income). Enter the amount you actually spent for supplies as a business expense.


It doesn't matter whether the amount you spent for supplies is more than $500, less than $500, or exactly $500. You enter the amount you actually spent as an expense. The $500 payment that you received is just additional business income. It doesn't matter what they call it.