topic I received 1099-NEC for the work I have done for a civic organization, basically a stipend. Can I list travel expenses to participate in the mtg/activities for this org? in Deductions & credits

I received 1099-NEC for the work I have done for a civic organization, basically a stipend. Can I list travel expenses to participate in the mtg/activities for this org?

ytischler — Fri, 28 Feb 2025 04:44:05 GMT

I saw the answers in the community that I should check off 'hobby/sporadic activities' for this 1099-NEC. Can I list as business expenses the travel expenses (air freights, toll and gasoline) I paid for the meetings & activities I participated in for this organization?

Re: I received 1099-NEC for the work I have done for a civic organization, basically a stipend. C...

DawnC — Fri, 28 Feb 2025 04:54:38 GMT

No, the IRS doesn't let you deduct hobby expenses from hobby income because you’re not considered self-employed.

Re: I received 1099-NEC for the work I have done for a civic organization, basically a stipend. C...

ytischler — Fri, 28 Feb 2025 18:15:22 GMT

I see. Going back one step, is it correct that I should report this 1099-NEC (working for a civic organization) as hobby/sporadic activity?

Also for my future reference,

If I was to treat potential future 1099-NECs as a business income, I could deduct the expenses but need to pay for self-employment taxes etc (face all kinds of other req'ts).

Thanks for your advice. Always speedy and helpful!

Re: I received 1099-NEC for the work I have done for a civic organization, basically a stipend. C...

RobertB4444 — Fri, 28 Feb 2025 19:17:19 GMT

You can choose to treat this as either a business or a hobby. It sounds like it's a side gig for you doing something that you love so it's understandable to not think of it as a job.

If it is a hobby the entire amount is taxable as regular income with no self-employment tax. If it is a business the net amount after expenses is taxable as regular income and is also subject to an additional 15% tax to cover social security and medicare.

You might do the math and see which one works out better for you. But be prepared to stick with whichever choice you make for all of the years that you continue to do this.

@ytischler