If this is considered a hobby the expenses can be added when you enter the income from the antique store. You can report the income and then deduct any actual expenses that are ordinary and necessary for you to receive the income. These expenses could be used as an itemized deduction for any amount that exceeds 2% of your adjusted gross income (AGI). The excess would be added to other itemized deductions so that TurboTax could maximize your deduction.
Whether the expenses are used on itemized deductions or whether you use the standard deduction the income must be added to the return.
To record your hobby income and deductions you can follow the steps here.
- Sign into your TurboTax account -
-
Search hobby income in the upper right
- Then Jump to hobby income, loss (see image attached)
-
Enter your income and expenses
- TurboTax will calculate your allowable expense and total itemized deductions
Be sure to add all itemized deductions to maximize the hobby expenses. (checklist attached to assist)
If you decide that this is more of a business, for which you plan to profit you could utilize the business Schedule C. It's all right if you aren't quite sure yet. You can always report it as a business if you find it becomes more than a hobby later.
If you want to record it as a business, instead of a hobby and use the expenses you can use TurboTax Self Employed or TurboTax Deluxe CD/Download version.
You can go directly to the area to enter the document by following these steps.
1. Sign into your TurboTax (online or desktop) version:
2. Use the Search box in the upper right
3. Search for business, schedule c
4. Jump to business,
schedule c (see image attached)
5. Continue
to Start or Edit your business
