Retirement and additional income from sales of paintings

[Kass22]

Hello,

I have been retired since 2019. I collect SS, and supplement with some retirement income payouts. Recently I started painting again (a hobby) and joined an art gallery. I have sold a few of my pieces, and sales taxes were collected. Now I am trying to figure out if I need to file a schedule C or what? I would say that my additonal  income from sales has been between $400-900/month since June. Please advise how/when I need to report sales. 

Thank you!

Kathy 

Turbo Tax user for many years!

[Anonymous]

Hi,

You need to report the income under wages and income, then self-employment income section of turbotax. This will be reported on a schedule C.

If you received any 1099-NEC's or 1099-MISC's, you would select that category of income within that section.

If it was just cash or checks, there will be a different section when you add the income to select other types of common, such as cash or checks, which you can enter as a description.

The threshold required to report income is at $600 or more annually.

Please contact 1-800-446-8848 if you need help entering that section.

Thank you,

John

CPA

[Anonymous]

Hi again,

Here are the tax rates on social security benefits:

https://www.ssa.gov/benefits/retirement/planner/taxes.html 

Thank you.

[Kass22]

This did not answer my question at all! I know about social security & taxes, what I needed to learn more about is how do I claim the income from sales of my paintings? Do I have to say I am self-employed even though I am not, and this is just sales from a hobby? 

[Kass22]

so I do need to file a schedule C then? Can I deduct all my expenses incurred including studio space in my home? The additional income will be over the threshold of $600...

[JandKit]

Hi Kass22,

As previously mentioned, you would need to file a Schedule C form which allows you to show income received as well as any deductions that you incurred while earning this income. iN adition, you can deduct that space called a 'studio' as an additional expense of doing business as an artist!

Goodluck to you! Sounds like an interesting second career for you!