Should I enter $2,500 I earned doing a one time creative job for sister's business as hobby? It was reported on 1099 MISC.

[bmarinelarena200]

Sorry, 1099 NEC. One time, I am not self employed.

[DianeW777]

It depends. You can decide if it's a business or a hobby, the IRS will consider this as self employment simply based on the Form 1099-NEC (nonemployee compensation or independent contractor).  You will have the burden of proof as to whether you do not operate as a business.  The information below will provide guidance for you.

This IRS link will help you: Business or Hobby?

Key elements:

1. 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.
2. 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.

Once you decide what type of income this is you can use the links below to see how to report.

• How do I report income from self employment?
• What self employment expenses can I deduct?

To report as a Hobby use the information below.

Other Miscellaneous Income:

1. Go to the Wages and Income  section of TurboTax
2. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
3. Select Hobby Income and Expense > Enter the income