side job expenses

[tlgdmr]

I am doing computer repair in my garage, I have exceeded the 5k limit on Venmo and I am waiting for a document from them. I usually buy computer parts from online amazon/ebay/newegg etc..

I made a list of the parts I bought from online and where and how can I show them as expenses?
It's not a business, just a side job on weekends.

Thank you.

[Vanessa A]

You do not need to itemize each part separately.  You will add up the costs of all the parts and enter them under supplies in the expense section of TurboTax. A side gig is still a business and still puts you in the self-employed category.  To enter your self-employment income select the following:

1. Federal
2. Income and Expenses
3. Show More next to Self-Employment
4. Start next to Self-Employment
5. Yes, to you have any self-employment income or expenses
6. Enter the type of self-employment work you do and you can select that you use your name for your business
7. Click through a few more screens and you will get to a screen that says "Your XX info"
8. Click Looks good
9. Then you will come to a screen that says Let's enter the income for your business.  It will give you the option of 1099-NEC or Other self-employed income including the 1099K , cash and checks.  Here is where you will enter your 1099
10. If you do not select one, it will not let you enter your income
11. Enter your self-employment income on the next screen
12. Continue and on the next screen click add expenses

* Please note navigation may differ slightly depending on which version of TurboTax you are using*

In the expense section, you will enter the total of the parts you are purchasing under supplies.  If you are using a part of your garage STRICTLY for computer repairs, you may be able to take a home office deduction as well.  If you are traveling to client sites to pick up their computers or deliver them or running to stores to get parts, you would be able to deduct your mileage or actual vehicle expenses for the running around for our business.  Plus any other expenses incurred to do your job.  

This income will be reported on Schedule C which is part of your overall tax return. This also means you will be subject to SE Tax.  If you did not pay SE Taxes in 2024, and if you plan to do this again in 2025, it may be a good idea to make  quarterly estimated payments to cover your SE taxes of 15.3% and avoid penalties.

If you have health insurance through a non-employer, you may also be able to deduct your health insurance premiums as a business deduction. The Self-Employed Health Insurance deduction is limited to your earnings.  Meaning, you cannot deduct more than you earned. This is also entered in the business expense section. 

Taking Business Expense Deductions