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matthewhshack
New Member

I only have $319.50 of side income to report. Do I still need to use the self employed option or can I just use the deluxe and allocate the extra?

I only have $319.50 of side income to report.  Do I still need to use the self employed option or can I just use the deluxe and allocate the extra?
2 Replies
matthewhshack
New Member

I only have $319.50 of side income to report. Do I still need to use the self employed option or can I just use the deluxe and allocate the extra?

In addition, if Deluxe is an option, would it be a wiser one?

LenaH
Expert Alumni

I only have $319.50 of side income to report. Do I still need to use the self employed option or can I just use the deluxe and allocate the extra?

It depends on whether the side income is hobby income or self-employment income. Hobby income is reported as Other Income, rather than on a Schedule C that you need for self-employment income. You only have to use the TurboTax Self-Employed if you need to file a Schedule C. 

 

The IRS has guidelines for what is a business and what is considered a hobby. In addition, any losses incurred each year will be treated differently depending on what this income is classified as. If an activity is a hobby, losses from that activity may not be used to offset your other income. The first step for you would be to determine whether this is a side business or a hobby. Please review this IRS fact sheet to help you evaluate your situation: Business or Hobby?

 

If you determine you are self-employed and need a Schedule C, please follow the instructions below:

  1. Open your return.
  2. Search schedule c with the magnifying glass tool on the top of the page.
  3. Go to the Jump to schedule c link in the search results. 
  4. Answer Yes to the page titled, Did you have any self-employment income or expenses?
  5. Follow the on-screen instructions.

If you determine you have hobby income, please follow the steps below:

  1. Click on Federal Taxes tab
  2. Choose Wages and Income
  3. Scroll down to Less Common Income 
  4. Click Start to to right of Miscellaneous Income, 1099-A, 1099-C
  5. Click Start to right of Hobby income and expenses
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