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You would enter your hobby income as other income. Here's a link that explains in how to enter hobby income; How do I enter a 1099-K for hobby income?
Additionally, here's an IRS link that explains the difference between a hobby and business; how to tell the difference between a hobby and a business for tax purposes.
So, even thought I am filing as a non-resident (live in TX, not the state I get regular income from) it won't be taxed differently? That's my big concern since I can't seem to add income from TX on TurboTax
it won't be taxed differently?
Different states compute non-resident income differently.
You are a resident of Texas. What is the non-resident state and what is the nature of the hobby income assigned to that state? Please clarify.
Live in: TX
Regular income (as in received W2): NE
Hobby income (photography, NOT a business): TX
My concern is I will be taxed on the hobby income based on NE rules and not TX, which is the state the hobby income comes from.
Your federal income tax will be based on all your income, regardless of which state generated the income. As a Texas resident, you pay no state income tax on any of your income.
You must also file a Nebraska state income tax return to report the wages earned in Nebraska. The Nebraska Department of Revenue states that their state income tax is based only on income generated in Nebraska. Your hobby income would be excluded from this state income.
We recommend that you complete your nonresident state return first, then your resident state.
I am very well aware how taxes work for the state of NE. I am (once again) asking for clarification on how to file THE HOBBY INCOME. Based on the responses I have so far, I am assuming I have to file TWICE. Once as a non-resident for NE and another time in TX for the hobby. That's all I want to get confirmed.
Yes, you will need to file two state income tax returns in addition to your federal return. The hobby income will not be reported on your non-resident return, only on your resident return.
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