Hi James,
Thanks for your response but after going through your answers, I've become more confused. Let me go question by question:
1) In my first question, I asked if I even need to report the income in the first place, since it was earned as a hobby and not with the intention that it's income that I depend on. Secondly, it's also not much. So given these two points, I was wondering if it even needs to be reported in my tax return. In your response, I don't think you've actually answered this, but rather mentioned the consequences of reporting hobby income instead of self-employed income, and how to file hobby income. I didn't ask about either of these.
2) For second question, I asked if I should file the income under Section C, or 1099-K. The first TurboTax answer in this thread suggested Section C, but based on some Google searches, I felt it might need to be reported as a 1099-K. But again I felt you didn't answer this, and instead mentioned other info regarding 1099-K.
3) For the third question, I think you answered, but it raised the following questions in my head: What is 'self-employment tax', which you mentioned in your answers to question 1 and 3 ? And why is hobby income requiring me to be taxed on income I didn't even receive ? That is, Apple took their 30% cut and then sent me the remaining proceeds, but your response suggested that I'm taxed on the proceeds prior to Apple taking their cut ?
