To enter hobby income and expenses in TurboTax please follow
these steps:
- Sign in to
your TurboTax account
- Click on Federal Taxes tab
- Choose Wages and Income
- Scroll down
to Less Common Income and click Start to to right of Miscellaneous
Income, 1099-A, 1099-C
- Click Start to right of Hobby income
and expenses
The
IRS doesn't allow you to deduct hobby expenses directly from hobby income. Instead,
you can deduct expenses as an itemized deduction subject to 2% of your adjusted
gross income. Also, the amount that you claim as an expense cannot be greater
than your income from the hobby. In other words, your hobby cannot generate a
loss.
Taxpayers
can choose to itemize expenses on their tax returns or take the
standard allowable deduction. Hobby expenses can only be deducted if you
itemize your deductions.
If
you don't have any other itemized deductions, TurboTax will deduct the
greater of the standard deduction or itemized deductions. TurboTax will choose
the one that lowers your overall tax liability.
