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James7171
New Member

Deductions

I will definitely be getting a 1099 from a hobby/side hustle.  What deductions am I allowed?  Supplies?  Postage?  Utilites?

 

Thanks!!

1 Reply
EricE_CPA
Employee Tax Expert

Deductions

Hi James7171,

 

First you will need to determine do you have a Hobby? or a Business?

The general rule is the IRS defines a hobby as an activity that a person purses because they enjoy it and have no intention of making a profit.

 

Now if you determine you have a hobby, then note that beginning in 2018, the IRS doesn't allow you to deduct hobby expenses from hobby income. you must claim all hobby income and are not permitted to reduce that income by any expenses.

 

If you determine that your hobby is actually a business, then you would need to prepare a Schedule C.   The business deductions you can take are expenses that are you incurred during that tax year you are filing.

As to what type of business deductions?  Here's a good article that can give you some guidance

Taking business tax deductions 

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