AnnetteB6
Expert Alumni

Get your taxes done using TurboTax

Yes, if you do continue to sell products and have income, then that income must be reported in order to file a complete and accurate tax return.  There is not an amount of sales that you can have without claiming the income.  You are expected to report all worldwide income each year as part of your return.

 

As for the amount of profit needed to continue to have a Schedule C business, there is not a set number that is known to the public as far as what the IRS uses as a guideline.  A profit of $1 is still a profit.  Of course a higher number than $1 would show that you are having more success in running your business.  

 

You have not mentioned any amounts in your questions as far as your income or losses, but if the business loss is proportionally small compared to your other sources of income on your return, then do not fret over a small loss for a third year in a row.  Then see how 2025 goes and make your decision to switch to a hobby at that time.  

 

But, if the loss from the business is wiping out a large portion of your income from other sources, that is much more of a red flag to the IRS.

 

@terimac4 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"