It depends. It is considered self employment because you performed a service for a fee based on the reporting Form 1099-NEC. The IRS will make this same determination or assumption.
You should report this income on Schedule C which would allow you to take expenses such as directly related expenses. The net profit will be subject to self employment tax if the amount is over $400.
The burden of proof would be on you to show this is a hobby. You can decide if it is hobby or business income. This IRS link will help you: Business or Hobby?
Key elements:
- A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
- A business allows you to deduct the costs necessary to obtain the income. The law explains that 'you must be engaged in the activity to produce a profit'. The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.
Other Miscellaneous Income: How to report:
- Go to the Wages and Income section of TurboTax
- Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
- Select Hobby Income and Expense > Enter the income