Payments done with EID -- but it's a hobby

Forum|Forum|4 years ago
April 15, 2022
3 replies
45 views

Hello everyone:

I have a photography (less than profitable) business that I opened an EID with the IRS and business bank account for.

I received payments of < 1000 and spent > 3000 so there is no profit.

This is in reality a hobby - I have no intention to make a profit for the years to come.

I understand that for 2021 I cannot claim deductions for a hobby.

Where in TurboTax do I put this income ? The payments have no 1099-k since it wasn't enough to be reported. Do I put it there just the same ?

Also the 1099k option in turbotax says I need to enter it into the self employment income -- is there a way to remove self employment income from turbotax after I added it ? Or does all 1099 k like income need to go through there ?

Does having an EID change the situation ? My transaction processor and the bank account used this information.

Thanks

Best answer by ErnieS0

Here’s how to enter hobby income in TurboTax:

Instead, tap Federal in the left column
Select Wages & Income at the top
Go to Less Common Income
Start Miscellaneous Income, 1099-A, 1099-C
Select Hobby income and expenses

Having an EID will not change your situation (I’m assuming you have no payroll).

ErnieS0Answer

Alumni - Intuit

Here’s how to enter hobby income in TurboTax:

Instead, tap Federal in the left column
Select Wages & Income at the top
Go to Less Common Income
Start Miscellaneous Income, 1099-A, 1099-C
Select Hobby income and expenses

Having an EID will not change your situation (I’m assuming you have no payroll).

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Michaelh230401Author

Level 2

Thanks, that works.

Someone else said the EID does matter and that I need schedule C, but that's wrong, right ?

I will go with this - this is simple.

AliciaP1

Alumni - Intuit

The EID does matter and constitutes your activities as a business entity with the intent to earn a profit.

Per the IRS:

An EIN is a 9-digit number (for example, 12-3456789) assigned to sole proprietors, corporations, partnerships, estates, trusts, and other entities for tax filing and reporting purposes. The information you provide on this form will establish your business tax account.

If you do not intend to operate your photography activities as a business, you need to refer to these steps, Closing a Business, and close the business. Until this is completed, you need to report your earnings and expenses on a Schedule C as self-employment income. To do that in TurboTax Online see How do I report income from self-employment?

@Michaelh230401

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