1. You need to list the income but where is the question. Let's take a look at Earning side income: Is it a hobby or a business? which lists 9 factors after stating that a hobby is for recreation, not for profit:
- Whether the activity is carried out in a businesslike manner and the taxpayer maintains complete and accurate books and records.
- Whether the time and effort the taxpayer puts into the activity show they intend to make it profitable.
- Whether they depend on income from the activity for their livelihood.
- Whether any losses are due to circumstances beyond the taxpayer's control or are normal for the startup phase of their type of business.
- Whether they change methods of operation to improve profitability.
- Whether the taxpayer and their advisors have the knowledge needed to carry out the activity as a successful business.
- Whether the taxpayer was successful in making a profit in similar activities in the past.
- Whether the activity makes a profit in some years and how much profit it makes.
- Whether the taxpayers can expect to make a future profit from the appreciation of the assets used in the activity.
2. If this is a side business- meant to make money- report it on Sch C. If this is hobby income and you don't really expect anymore, enter it like this:
- Go to income
- Select 1099-Misc
- Add payor information
- Continue
- Describe the reason - Hobby income
- Continue
- None of these apply
- Continue
- Did it involve work like main job? Select No, continue
- How often, select in 2023
- Intent to make money? No, continue
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