My husband sells on Ebay using Paypal for payment. How do I report his side gig income. We file married. He made $6,800 last year.
What items can I deduct to off-set tax on the $6,800? Do the items have to be more than our standard deduction for married couple?
Which TurboTax program would I use to file W2s and the 1099 for the side gig? Deluxe or Premium?
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You need TurboTax Premium or TurboTax desktop Home and Business and you will report your husband's self employment income and expenses on Schedule C.
For trade or business expenses to be deductible, they must be ordinary & necessary. Work-related expenses reduce your taxes by lowering the amount of self-employment income you get taxed on.
If your expenses are less than your income, the difference is net profit and becomes part of your income on page 1 of Form 1040 or 1040-SR. If your expenses are more than your income, the difference is a net loss. You usually can deduct your loss from gross income on page 1 of Form 1040 or 1040-SR. But in some situations your loss is limited. See Publication 334, Tax Guide for Small Business (For Individuals Who Use Schedule C),
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