JohnB5677
Expert Alumni

Business & farm

I understand the situation, but this is your business, and you will have to pay any associated taxes as far as the IRS is concerned.  You can list the business as a hobby.  Hobbies are not subject to self-employment tax.  However, you can not take any deduction for the cost of materials or other expenses.

 

Please see Tips for taxpayers who make money from a hobby


If someone has a business, they operate the business to make a profit. In contrast, people engage in a hobby for sport or recreation, not to make a profit. Taxpayers should consider nine factors when determining whether their activity is a business or a hobby. They should base their determination on all the facts and circumstances of their activity.

 

If a taxpayer receives income for an activity that they don’t carry out to make a profit, the expenses they pay for the activity are miscellaneous itemized deductions and can no longer be deducted. The taxpayer must still report the income they receive on Schedule 1, Form 1040, line 21

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