That would depend on the actions and intent of you or your children. If they are pursuing acting as a "career" or to make money, then this would be considered business activity and it would be reported on Schedule C. If it is reported on Schedule C, then you also be able to claim expenses associated with their acting careers.
If there is no intention of trying to make money or making this a career, for example, they just like to make YouTube videos for fun but then someone noticed them and asked them to appear in a commercial, this would be more hobby type income as there is no intent to make money on it and they are doing it mostly for personal satisfaction. If it falls into the hobby category, then expenses are not deductible unless you itemize the return.
Also, when something is reported as a hobby, if it generates a profit for 3 out of 5 years, then it is seen as a business and not a hobby. And vice versa as well. If it does not make a profit in 3 of out 5 years, then it is considered a hobby.
Hobby versus Business Income
To enter your self-employment income click the following:
- Federal
- Income and Expenses
- Show More next to Self-Employment
- Start or Revisit next to Self-Employment
- Yes, to you have any self-employment income or expenses
- Enter the type of self-employment work you do
- Click through a few more screens and you will get to a screen that says "Your XX info"
- Click Looks good
- Then you will come to a screen that says Let's enter the income for your business. It will give you the option of 1099-NEC or Other self-employed income including the 1099K , cash and checks. Select the one that applies to you and hit continue
- If you do not select one, it will not let you enter your income
- Enter your self-employment income on the next screen
To enter as Hobby Income select the following:
- Federal
- Income
- Less Common Income
- Hobby Income and Expenses
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