Form 1040 line 21 hobby/bus - I entered income of $650 and expenses of $650, but the 1040 shows only taxable income of $650? Why are the expenses ignored?

larrywh74 — Tue, 04 Jun 2019 01:41:33 GMT

Hobby expenses are only deductible as miscellaneous itemi...

Opus 17 — Tue, 04 Jun 2019 01:41:35 GMT

Hobby expenses are only deductible as miscellaneous itemized deductions subject to the 2% rule. You must have other itemized deductions and the total of your miscellaneous deductions must be more than 2% of your income before they will reduce your taxes.

Note that the IRS is not fond of taxpayers who try to claim self-employment income as a hobby (to avoid self employment tax) or of taxpayers who claim hobby income as if it was a business (to get better expense deductions). So be careful about changing the income around.

topic Form 1040 line 21 hobby/bus - I entered income of $650 and expenses of $650, but the 1040 shows only taxable income of $650? Why are the expenses ignored? in State tax filing

Form 1040 line 21 hobby/bus - I entered income of $650 and expenses of $650, but the 1040 shows only taxable income of $650? Why are the expenses ignored?

Hobby expenses are only deductible as miscellaneous itemi...