1) It would be a business as your intention was to make a profit. It does not matter that you lost interest or ended the business it only matters that your intention was to be a business.
2) Yes, since it was a business, you can deduct the expenses related to the business. In a hobby, none of the expenses are deductible. As a business, you can also include the cost of the shipping fees and PayPal fees.
You would use TurboTax Home and Business or TurboTax Premium to enter income from self-employment. This income will be reported on Schedule C which is part of your overall tax return. This also means you will be subject to SE taxes of 15.3% .
Even if you do not get a 1099-K, you are still responsible for reporting this income. All income from all sources must be reported on your return if you are filing a return.
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