If the T shirt business was reported on her personal return, it may not be necessary. Sch C businesses are constantly changing so dropping it would have no effect. However, the filing requirement are based on the gross income, not the net. Please see Who Should File a Tax Return for your situation.
If the IRS later decides the business was a hobby, then expenses would be disallowed with a tax due on the new income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
