Hobby expenses are not subject to the 2% of AGI floor. You should be able to deduction all of your hobby expenses. The only reason you may not be "technically" deducting the hobby expenses is if your itemized deductions are less than the standard deduction.
Check line 40 of your Form 1040 to see if you are taking the standard deduction or whether you are itemizing.
The other problem (possible, but not the most probable issue) could be that you may be entering the hobby expenses in the wrong section. To
report hobby income and expenses in TurboTax, follow this path in the program:
- Go to the Federal Taxes category (or Personal) in
TurboTax.
- Go to the Wages and
Income (or Personal Income) subcategory.
- In the Your 2016
Income Summary, find the section labeled Less Common Income.
- Click start or
update on the line labeled Miscellaneous Income, 1099-A, 1099-C.
- Click start or
update 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).
