Business & farm

If the income is reported on Form 1099-NEC, you would not convert it to a 1099-MISC.  The Form 1099-NEC is self evident that it would be considered self employment income.  However, if you believe with confidence this would represent a hobby instead of a business you could choose to report it as a hobby. The business income allows you to deduct ordinary and necessary expenses needed to earn this income, while hobby does not allow expenses to offset the income at all.

This IRS link will help you: Business or Hobby?

Key elements:

1. A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
2. A business allows you to deduct the costs necessary to obtain the income.  The law explains that 'you must be engaged in the activity to produce a profit'.  The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.

Once you decide what type of income this is you can use the links below to see how to report.

• How do I report income from self-employment?

To enter hobby income and expenses in TurboTax please follow these steps:

1. Once in your tax return, Choose Wages and Income
2. Scroll down to Less Common Income and click Start to to right of Miscellaneous Income, 1099-A, 1099-C
3. Click Start to right of Hobby income and expenses