Hobby income (and expenses) is entered by using Other Miscellaneous Income. under Less Common Income. The full amount of your hobby income that is received should be included here. You do not need to use a minus sign for the entry of your hobby expenses.
To be clear, hobby expenses are not allowed to be used after December 31, 2017, due to the Tax Cuts and Jobs Act (TCJA). Even though you enter them they will not be used for 2020.
Personal items sold at a loss are not deductible and do not need to be reported, such as clothes, household items or other personal purchases. Keep good records of all sales (and purchases you do have available). Also keep a good record of what income you did not report that related to these items.
Personal items sold at a gain are taxable and should be reported on Schedule D. This could include your knives, however you specifically state you purchase them for resale. You must decide if you are in the business of buy and reselling knives or if this is strictly a hobby.
Backing out the cost of goods sold: This can be done if you are self-employed. If you decide this is a hobby, then the cost of goods, including shipping, etc cannot be backed out before reporting the income. The IRS is very clear on this point.
Use the guides provided by @KathrynG3 to make your determination of your status and then use the correct entry for this income.
To report this activity as self employment use the Search (upper right) > Type Schedule C > Press Enter > Click the Jump to... link, then continue to enter your information about this business. This will require TurboTax Self-employed or TurboTax Desktop version.
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