Can 4H Projects be deducted?

[PaulaM]

If you have income from the project, then you can deduct the expenses against the income to arrive at net income.

According to IRS pub 225 (page 73), 'any net income received from sales or prizes related to the project my be subject to income tax. Report the net income on line 21 of Form 1040.'

https://www.irs.gov/pub/irs-pdf/p225.pdf

[moore6]

where do I enter this info when filing my taxes.

we have many expenses related to this

[ColeenD3]

As the  instructions above state, enter the NET income in other income.

• Click Federal Taxes -> Wages & Income and scroll down to Less Common Income
• Go to the last selection, Miscellaneous Income and click Start
• Go to the last option, Other reportable income and click Start
• When it asks, "Any other reportable income?" say yes and then type in a description and the amount to report it on your tax return.

[jakrock]

what if this is was your first year and the money received for the project did not come in until after the new year?  for example.  we started the project in 2020 but the show was not until feb 2021.