Self employed
If your son received a 1099-K, he will be presented with these options to report the income.
Hobby income would report the income as ‘other income’ and would only be subject to income tax. No expenses would be allowed to offset the income. TurboTax Premier or Deluxe Online would be able to file the tax return.
Self-employment income would be reported on Schedule C Profit and Loss from Business and would be subject to income tax as well as self-employment tax. Ordinary and necessary expenses related to the business would be allowed to be deducted from the income. TurboTax Online Self-employed would be required to file the tax return.
This IRS website states:
Who is Self-Employed?
Generally, you are self-employed if any of the following apply to you.
- You carry on a trade or business as a sole proprietor or an independent contractor.
- You are a member of a partnership that carries on a trade or business.
- You are otherwise in business for yourself (including a part-time business or a gig worker).
