The $545 needs to be reported on her return, Granted if you are using Premier now, you would need to upgrade to Self-Employed to enter expenses against her Business income on the Sch C. I am not sure the increase in TurboTax fees will justify the amount of tax savings you might realize from adding expenses. Adding it to Miscellaneous income might be the best route. The income will get reported and you can continue in Premier without having to upgrade.
- Select Federal Taxes, Wages & Income, I'll Choose What to Work On
- Scroll to Less Common Income, and select Miscellaneous Income, 1099-A, 1099-C
- Select Other Income not already reported on For W-2 or for 1099
- Select Yes
- Continue until you see Any Other Earned Income, and select yes, now on the next screen select other
- Complete the information
