DavidS127
Expert Alumni

Get your taxes done using TurboTax

If your son considers his gaming a business activity that he pursues for profit, instead of a hobby, he can file a Schedule C with his tax return and deduct the "ordinary and necessary" expenses for his business.  In addition to any taxable income generated by the net income, your son will owe self-employment taxes if he has more than $400 of net income.

 

Your son will enter the income from the 1099-MISC as gross income for his business in the Federal>>Income & Expenses>>Self-employment income and expenses section.  The taxes withheld will be entered in the Federal>>Deductions and Credits>>Estimates and Other Taxes Paid>>Income Taxes Paid section.

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