Yes, all hobby income is reportable income. Hobby income is not reported on Schedule C. Hobby expenses are no longer deductible. Hobby expenses
If this is a business, then you would report it on Schedule C.
For the cashback part of the question, please see this answer from @AmyC:
You must report and then explain - subtract. If you truly had no business or earned income, you will report the 1099K and then report a negative amount under other income.
Follow these steps:
- Go to Federal section
- Scroll down to Less Common Income
- Select Miscellaneous Income, 1099-A, 1099-C selection
- Select Other Reportable Income, START
- Any other taxable income, select YES
- Enter description, 1099k not taxable
- Enter the NEGATIVE amount in the box next to your name.
- Click Continue
