Side Gig Expenses

Forum|Forum|2 months ago
July 15, 2026
6 replies
110 views

Recently sold art for $258.00 as a side gig; anticipating additional sales in 2026. The seller withheld 30% and there was a $25.00 entrance fee. Are both items considered expenses?

We are both retired as of June 2026 and filing jointly.

Is this the appropriate calculation: (258 *0.7) -25?

Best answer by VolvoGirl

Yes that is self employment income. You will need to file it on Schedule C. You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to the Premium version or use any of the Desktop CD/Download programs.

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

You will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

M-MTax

Level 15

If this is considered income from self-employment, then the $25 entrance fee and the 30% commission (if that’s what it is) would be deductible as expenses. Note that self-employment tax would be due if you have a net profit of more than circa $400.

tjreilly1Author

Level 2

Thank you

VolvoGirlAnswer

Level 15

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

tjreilly1Author

Level 2

Thank you

NCperson

Level 15

if the net income is less than $400, there is no need to report anything.

And if the income exceeds $400, be sure to take the SEHI (self-employment health insurance) adjustment - assuming you are on Medicare. You’ll still pay the 15.3% SE tax, but there would likely be no income tax.

M-MTax

Level 15

if the net income is less than $400, there is no need to report anything.

The income still has to be reported even if the net is less than $400. The $400 threshold is only relevant for self-employment tax. Otherwise, every dollar of income is required to be reported.