YouTube income ("hobby" income or "self-employment" income?)

WhyTaxMe — Wed, 28 Jun 2023 19:00:58 GMT

Hello. I publish YouTube videos as a hobby. I expect to receive around $700 in "earnings" from Google. How do I report this income for 2023?

Is it "hobby" income (no deductions for expenses and no "self-employment" tax required) or is it "self-employment" income (Schedule C required plus the dreaded "Self-Employment" tax)?

I get a 1099-MISC from Google.

Thank you.

Re: YouTube income ("hobby" income or "self-employment" income?)

KatherineS63 — Wed, 28 Jun 2023 19:14:59 GMT

To report hobby income:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/report-hobby-income/L62QCBC52_US_en_US

If that does not help, you can look for Other Miscellaneous income and Hobby Income will be one of the sections.

If you determine that it is self employment, then you would enter the income and expense in the self employment section. Enter the income and then select the expenses categories.

This link talks about how to enter income:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/self-employment-taxes/report-income-self-employment/L5wADi3xQ_US_en_US

This link talks about how to enter expenses:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-self-employment-business-expenses-like-home/L1k6HJY4A_US_en_US

Per the IRS:

The IRS has specific rules regarding treating income as business or hobby income.

To determine the difference the IRS considers these questions:

Does the time and effort put into the activity indicate an intention to make a profit?
Does the taxpayer depend on income from the activity?
If there are losses, are they due to circumstances beyond the taxpayer’s control or did they occur in the start-up phase of the business?
Has the taxpayer changed methods of operation to improve profitability?
Does the taxpayer or his/her advisors have the knowledge needed to carry on the activity as a successful business?
Has the taxpayer made a profit in similar activities in the past?
Does the activity make a profit in some years?
Can the taxpayer expect to make a profit in the future from the appreciation of assets used in the activity?

Also, the IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses.

This link is a nice link to learn more about self employment income and expenses:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/reporting-self-employment-business-income-and-deductions/L3Unchx1x

Please click on Live Help if you need help when you are doing your taxes.

topic YouTube income ("hobby" income or "self-employment" income?) in Get your taxes done using TurboTax

YouTube income ("hobby" income or "self-employment" income?)

Re: YouTube income ("hobby" income or "self-employment" income?)