LenaH
Employee Tax Expert

Get your taxes done using TurboTax

Depending on whether you classify this income as a hobby or a business, will determine where in TurboTax you will enter your earnings. The IRS has guidelines for what is a business and what is considered a hobby. In addition, any losses incurred each year will be treated differently depending on what this income is classified as. If an activity is a hobby, losses from that activity may not be used to offset your other income.

 

The first step for you would be to determine whether this is a side business or a hobby. Although it appears from your description of the activity that it is a hobby, please review this IRS fact sheet to help you further evaluate your situation: Business or Hobby?

 

If you have determined this to be a business, you would enter your earnings and expenses on a Schedule C. To access these fields in TurboTax, complete the following steps:

  1. Open your return in TurboTax.
  2. Search for Schedule C with the magnifying glass tool on the top of the page.
  3. Select the Jump to Schedule C link in the search results.
  4. Select Yes to the question Did you have any self-employment income or expenses? 
  5. Follow the on-screen instructions to complete your Schedule C.

If you have determined this to be a hobby, complete the following steps:

  1. Open your return in TurboTax.
  2. Search for Other Income with the magnifying glass tool on the top of the page.
  3. Select the Jump to Other Income link in the search results.
  4. Select No to the question Did you get a 1099-MISC?
  5. Scroll down to Miscellaneous Income under Less Common Income and click Start.  
  6. Click Start next to Hobby income and expenses. 
  7. Follow the on-screen instructions to enter your data. 
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