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Level 1
January 30, 2026
Question

If I receive a 1099-NEC can I still designate that as a hobby rather than a business?

  • January 30, 2026
  • 1 reply
  • 20 views
I receive 1099-NEC from a business that I used to run, but now it's kind of passive. Can that be designated then as hobby?

1 reply

KrisD15
Level 15
January 30, 2026

Yes,

it does sound like a business since another business issued to you a 1099-NEC.

There is also the question of whether you have an EIN or business licenses or DBA with the state. 

 

However, if you only pursue the activity for pleasure, and you don't expect or try to earn income from the endeavor, report it as a Hobby. 

You'll need to claim ALL the income relating to that specialty and deductions will be limited. 

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