I started a hobby business that did not make a profit in 2020. Income before deductions was less than $1000. Do I need to claim it on my taxes?

adrienne-mcdouga — Mon, 01 Mar 2021 13:54:06 GMT

Re: I started a hobby business that did not make a profit in 2020. Income before deductions was l...

HelenC12 — Mon, 01 Mar 2021 14:20:36 GMT

Yes, all income needs to be reported, even if it's from a hobby.

Prior to tax year 2018, hobby-related expenses could be deducted, but this is no longer the case.

To enter Hobby income:

Type hobby expenses in the search box (yes, hobby expenses are not deductible but this is how to get to the Hobby section of TurboTax).
Click on Jump to hobby expenses.
On the Enter your hobby income and expenses for 2020 screen, enter your hobby income and expenses. The Hobby expenses box is a placeholder in case the IRS allows hobby expenses in the future.
To see the Hobby income on your Form 1040, you can Preview your 1040. Scroll down to Schedule 1, Line 8, Other income.