- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
No, it is not a hobby income. You are still considered as self employed. When you received an nonemployee compensation on a Form 1099-NEC, the IRS treats you as self employed. You are required to file a Schedule C. If you continuously generate a net loss for several years, the IRS might consider you having a hobby not a business.
You will need to enter the information in both Form 1099-NEC and Schedule C sections. You would start from the 1099-NEC section under "1099-MISC and Other Common Income". You would then follow prompts to tell the program you are filing a Schedule C. As it creates a Schedule C for you, you will need to go to the Schedule C portion separately to confirm your income amount, add related expenses and complete required information.
In TurboTax online, here are the steps:
- Sign into your account, select Pick up where you left off
- From the upper right menu, select Search and type in 1099nec and Enter
- Select the Jump to 1099nec
- Follow prompts to complete the section
Then
- From the upper right menu, select Search and type in schedule c and Enter
- Select the Jump to schedule c
- Next screen, "Your 2020 work summary" under your self employed business, select Review
- Continue to enter related expenses and other required information
To learn more about hobby and business, click the IRS link here: https://www.irs.gov/newsroom/hobby-or-business-irs-offers-tips-to-decide
**Mark the post that answers your question by clicking on "Mark as Best Answer"