Thanks for the responses! If you don't mind, I have a couple more related questions that should help me finish out this section:
1. "Did you play an active role in this business?" -I'm unsure of how to answer this. My wife worked <100hrs for the year but technically she did "perform all the work" of her independent contractor/dance instructor "business", so I think that makes this an active role right? On the other hand, if this is answered from the perspective of the dance studio, I would think my wife's instructor services would not be considered an "active role" b/c there were numerous other dance instructors at the studio as well who performed as much or more work than she did. Also my wife isn't involved in the management of the studio in any way.
2. Do I need to check the box that says "I sold or otherwise disposed of this business during 2022."? I think the answer is yes since she quit working for the studio in 2022.
3. Is her payment for dance instructor services considered "Qualified Business Income" (i.e. it is not treated as wages)? I am unsure of how to answer this b/c she was paid at an hourly rate, but no taxes were withheld and she only received a 1099-NEC for her work...not a W-2.
