It depends on whether the side income is hobby income or self-employment income. Hobby income is reported as Other Income, rather than on a Schedule C that you need for self-employment income. You only have to use the TurboTax Self-Employed if you need to file a Schedule C.
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. Please review this IRS fact sheet to help you evaluate your situation: Business or Hobby?
If you determine you are self-employed and need a Schedule C, please follow the instructions below:
- Open your return.
- Search schedule c with the magnifying glass tool on the top of the page.
- Go to the Jump to schedule c link in the search results.
- Answer Yes to the page titled, Did you have any self-employment income or expenses?
- Follow the on-screen instructions.
If you determine you have hobby income, please follow the steps below:
- Click on Federal Taxes tab
- Choose Wages and Income
- Scroll down to Less Common Income
- Click Start to to right of Miscellaneous Income, 1099-A, 1099-C
- Click Start to right of Hobby income and expenses
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