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Self employed
If you call it a hobby the $400 will be taxed at your normal take rate, If you call it a business the profit will be taxed at your normal tax rate plus and additional 15% self employment tax.
Example if you are in the 10% bracket taxes would be
Hobby $400x10%=$40
Business $200x10%=$20 plus $200x15%=$30 total tax $50
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‎August 31, 2022
11:22 AM