Solved: Should my husband file separately for income made from selling art? Should we itemize? Help appreciated! :)
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Should my husband file separately for income made from selling art? Should we itemize? Help appreciated! :)

My husband and I have filed jointly since we've been married and it has worked for us fine. We both have made one income from the state in which we work, etc. all pretty straightforward.

In 2018 he started selling his art, most of it was sold in NY state if that is important, and started tracking the money he spent on his supplies.

How should we file for this? As just additional income on our joint return? Should we file separately as a business? If so, under what TIN? His SSN I assume, since he doesn't have  a business TIN issued. A topic for another time!

Total income was probably under $2,500 if that is important as well.

Thanks in advance for any help!
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Level 15

Should my husband file separately for income made from selling art? Should we itemize? Help appreciated! :)

You should continue to file as Married filing Jointly. The art income is just additional income that goes on a different line on form 1040. 

There are actually two choices as to which line the income goes on: 1). hobby income on line 21 of Schedule 1 or 2). self employment (business income) on line 12 of Schedule 1. For a discussion, see https://www.irs.gov/newsroom/hobby-or-business-irs-offers-tips-to-decide.  

Most artists will report it as business income.  The good news is that you get to deduct expenses if it's a business. The bad news is you have to pay social security and medicare ("FICA") tax on your profits. The self employed pay FICA as self employment tax (SET). You don need a TIN, use your SS# and you do not file the business separately. It goes on Schedule C, then line 12 of Schedule 1, and is part of your jointly filed personal return. Your business expenses are deducted on Schedule C and are not part of itemized deductions. You get the standard deduction ($24,000 married) in addition to your business deductions. 

In Turbotax, type> business income, self employed <in the find box. Then "Jump to". You will have to upgrade to the Self Employed edition of TT.

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Level 15

Should my husband file separately for income made from selling art? Should we itemize? Help appreciated! :)

You should continue to file as Married filing Jointly. The art income is just additional income that goes on a different line on form 1040. 

There are actually two choices as to which line the income goes on: 1). hobby income on line 21 of Schedule 1 or 2). self employment (business income) on line 12 of Schedule 1. For a discussion, see https://www.irs.gov/newsroom/hobby-or-business-irs-offers-tips-to-decide.  

Most artists will report it as business income.  The good news is that you get to deduct expenses if it's a business. The bad news is you have to pay social security and medicare ("FICA") tax on your profits. The self employed pay FICA as self employment tax (SET). You don need a TIN, use your SS# and you do not file the business separately. It goes on Schedule C, then line 12 of Schedule 1, and is part of your jointly filed personal return. Your business expenses are deducted on Schedule C and are not part of itemized deductions. You get the standard deduction ($24,000 married) in addition to your business deductions. 

In Turbotax, type> business income, self employed <in the find box. Then "Jump to". You will have to upgrade to the Self Employed edition of TT.

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New Member

Should my husband file separately for income made from selling art? Should we itemize? Help appreciated! :)

THANKS SO MUCH!!! I kind of fumbled around and got to here with the self-employed edition. But I would've been questioning that decision till next tax season! Thanks for confirming I was doing it correctly, soooooo helpful! Best Wishes!
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