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

[Michaelh230401]

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

[ErnieS0 · Accepted solution]

Here’s how to enter hobby income in TurboTax:

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

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

[Michaelh230401]

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]

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