All income needs to be reported on your tax return, even if it's from a hobby. This is a great article about IRS guidelines for a hobby versus small business: When the IRS Classifies Your Business as a Hobby Some of the questions listed in this article for determining if you have a hobby or small business are as follows:
- Do you put in the time necessary to turn a profit
- Have you made a profit in the past or expect to make one in the future
- Do you depend on the income from this activity
Hobby income is report on line 8 of schedule 1 of Form 1040. Hobby losses are not deductible.
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