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Deductions & credits
You can choose to treat this as either a business or a hobby. It sounds like it's a side gig for you doing something that you love so it's understandable to not think of it as a job.
If it is a hobby the entire amount is taxable as regular income with no self-employment tax. If it is a business the net amount after expenses is taxable as regular income and is also subject to an additional 15% tax to cover social security and medicare.
You might do the math and see which one works out better for you. But be prepared to stick with whichever choice you make for all of the years that you continue to do this.
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‎February 28, 2025
11:17 AM
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