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Whether or not the points or surveys are redeemed is not the key. The real question is when did you have complete access to redeem the points  Once you had no restriction to the points they were income whether or not they were redeemed for cash. An exception would only apply if there was a restriction until a certain day. You must report income in 2021 for amounts you had an unrestricted right to in 2021.

You are correct to set up the freelance writing as a second and separate Schedule C.

You would report this as self employment income unless you can define it has a hobby. Hobby income does not have the ability to deduct hobby expenses under the Tax Cuts and Jobs Act (TCJA) for the years 2018-2025.

Any income received for services or goods is taxable.  You have to decide if it's a hobby or a business for tax purposes. Review this page from IRS:

• Business or Hobby?

Key elements:

1. A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
2. A business allows you to deduct the costs necessary to obtain the income.  The law explains that 'you must be engaged in the activity to produce a profit'.  The test under IRS is that you must show a profit three out of every five consecutive year. 

It's important to understand a couple of things.  One, the expenses that can be deducted start from the time it you started this business.  Any expenses to research, analyze and legally begin the business are called 'start up expenses'.  You have a choice on how you want to handle those. Likewise you can take advantage of the de minimis safe harbor for small business if you purchased any equipment to use in your real estate business.

1. Start up costs - if you had any expenses before you actually opened for business services such as legal fees, market study or organization fees
   • The IRS allows you to deduct $5,000 in business startup costs and $5,000 in organizational costs, but only if your total startup costs are $50,000 or less.
2. Any equipment that was placed in service and has more than a one year estimated life such as a lawn mower must be listed individually with the date of purchase and the cost including any sales tax paid.  The will be listed under assets and each asset must be entered by itself in this section.
   • If you have assets that cost less than $2,500, it's just easier and faster to enter their total cost under the miscellaneous costs. This is a special rule. The de minimis safe harbor is simply an administrative convenience that generally allows you to elect to deduct small-dollar expenditures for the acquisition or production of property that otherwise must be capitalized under the general rules.

All of this information is entered on Schedule C which requires TurboTax Online Self-employed or TurboTax CD/Download Home & Business.

• Where do I enter Schedule C

Please update if you have more questions and one of our tax experts will help you.