Making Money by Playing Video game and file its earning

[Mounir_Mkhallati]

My son is 16 years old and he is making money by playing a video game called Fortnite.

He got 1099-misc with his income in box #3 and a federal income tax withheld in box #4.

Does this considered a self-employed work and can be filed with schedule C to deduct his expenses like the computer, the internet fees, .. etc. Or this considered prize money? Because each situation has a different way to file! Since Prize money has no expenses deductions and self-employed has schedule C for deductions.

In fact, this is the way he is making money, by playing a video game, but how to consider it for filing purposes?  is this money considered earned money by work or not?

[DavidS127]

If your son considers his gaming a business activity that he pursues for profit, instead of a hobby, he can file a Schedule C with his tax return and deduct the "ordinary and necessary" expenses for his business.  In addition to any taxable income generated by the net income, your son will owe self-employment taxes if he has more than $400 of net income.

Your son will enter the income from the 1099-MISC as gross income for his business in the Federal>>Income & Expenses>>Self-employment income and expenses section.  The taxes withheld will be entered in the Federal>>Deductions and Credits>>Estimates and Other Taxes Paid>>Income Taxes Paid section.