This is self-employment income. This project was entered into with a profit motive. An example of a hobby would be collecting stamps and occasionally selling one.
This is not sporadic; it just didn't work out. This almost always happens with MLMs.
She will file a Schedule C and indicate that she earned the money by selling the product. She can take any expenses she incurred against the income.
We'll automatically complete Schedule C when you set up your self-employment work in TurboTax or when you enter what the IRS considers self-employment income, which is usually reported on Form 1099-NEC or 1099-MISC.
Schedule C is supported in TurboTax Self-Employed (both online and in the mobile app) and in all personal 1040 versions of the TurboTax CD/Download software.
To set up your business:
- Open or continue your return.
- Search for schedule c and click the Jump to link in the search results.
- Answer Yes to Did you have any self-employment income or expenses?
- If you've already entered self-employment work and need to enter more, select Add another line of work.
- Follow the onscreen instructions.
