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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.
‎January 16, 2023
8:14 PM