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If i made money on a hobby business but it all went to overhead and i spent more that it made do i still claim it ?

 
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Patrice
New Member

If i made money on a hobby business but it all went to overhead and i spent more that it made do i still claim it ?

Yes, If you have a hobby that is also a source of income, you’re required to report the income on your federal tax return.

However, you can deduct your hobby expenses up to the amount of hobby income. If your hobby expenses are more than your hobby income, you have a loss from the activity. You can't deduct the loss from your other income.

You must itemize deductions on your tax return in order to deduct hobby expenses. Your expenses may fall into three types of deductions, and special rules apply to each type. See of Publication 535 for the rules about how you claim them on Schedule A, Itemized Deductions.

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