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3521gap1t
New Member

I received 1099 misc for $959 from bowling a tournament. It cost me $1085 for entry fees how can I deduct this expense?

 
2 Replies
Hal_Al
Level 15

I received 1099 misc for $959 from bowling a tournament. It cost me $1085 for entry fees how can I deduct this expense?

After entering the 1099-Misc

On the next screen Describe what the payment was for

On the next screen select "none of these apply"

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2017" ONLY. Do NOT say you will get it in 2018, even if you expect that you might.

On the next screen select No, it didn't involve intent to earn money

TT will put the amount on line 21 of form 1040 as other income.


Although theoretically you can deduct the some of the entry fess (up to $959, the amount of the winnings); from a practical matter, they won't be deductible. Hobby expenses are only deductible as an itemized deduction and are subject to the 2% of AGI threshold.

. (2% rule explained: https://ttlc.intuit.com/questions/2902781-what-is-the-2-rule

PatriciaV
Expert Alumni

I received 1099 misc for $959 from bowling a tournament. It cost me $1085 for entry fees how can I deduct this expense?

Yes, entry fees may be reported as an expenses related to the 1099 income.

Normally, income like this is reported in Box 3 (Other Income) of Form 1099-MISC.

Enter Form 1099-MISC under Wages & Income >> Income from 1099-MISC. Indicate that this was not related to your job, and that you received it only this year, with no intent to earn money.

The easiest way to find this section of TurboTax is to use the Search box at the top right side of the TurboTax header. Click on the magnifying glass, type in "1099-misc", hit Enter, and click on "jump to 1099-misc" to go directly to beginning of this topic.

Or go to My Account >> Tools >> Topic Search. Type in "1099-misc", then click the topic in the list to go directly to the start of this section.

(If you are using the mobile app and don't have My Account or Tools on your screen, try logging into TurboTax from a laptop or desktop browser.)

You may report the costs associated with the 1099 income as miscellaneous itemized deductions (Other Deductible Expenses under Other Deductions & Credits). In this instance, the total expenses that you deduct cannot exceed the amount of income you received. But you will also not pay self-employment taxes on the income.

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