Hi there. I make residual income from music. Music I have created in the past gets licensed each year and I make money from that. I get 1099s from the business I work with. Every year I do not make a profit as I spend more than I make. TurboTax suggested that I consider changing how I file next year to a Hobby instead of a business. My revenue from
music licensing each year is around $2k. This is not my full time job. I do it just for fun. Should I keep filing this as a “business” even though there are losses each year or as a “hobby”? If a hobby, what do I do differently? What forms do I need to complete, and what do I need to tell/give to TurboTax next year? Thank you for your help!
