Yes, you can.
The IRS would generally
consider prize money from a sport as hobby income, especially if the expenses
are greater than your income.
Hobby income is not taxable for
self-employment taxes and it is reported on line 21 of form 1040, and expenses
from the hobby are reported as a miscellaneous itemized deduction (this
deduction is limited to the gross income from the hobby).
However, if your participation
in this sport is conducted as a trade or business, you would could upgrade to
TurboTax Self-employed and report the income and expenses on schedule C.
To report hobby income and
expenses in TurboTax, follow this path in the program:
- Click on Federal on the left-hand menu.
- Click on
Wages across the top.
- Scroll
down to Less Common Income and click Show more.
- Click
Start or Revisit on the line labeled Miscellaneous Income, 1099-A, 1099-C.
- Click
Start or Revisit on the line labeled Hobby income and expenses.
- Enter your
hobby income and all of your expenses in a lump-sum figure. If the
expenses are more than the income, you can simply enter the income amount
on both lines (TurboTax will apply the limitations regardless of what you
enter).
