I have a part time job as a standardized testing tutor (made about $20,500 in 2021 and received a W-2 for), a small Etsy business (total sales were around $800 in 2021, I'm honestly unsure of my profit number), and my own photography business (sole prop, "made" around $2,500 in 2021). I don't think I would qualify for the free simple return from turbotax, but I wanted to double check. I'm also just confused about reporting my Etsy shop and photography business $$$ as well. For the Etsy shop, I didn't truly "make" $800 because so much of that is taken away with cost of making the product, shipping, etc. Also, the photography $$$ was from two gigs where one of the checks made out to me was actually mainly a reimbursement (I did an assistant gig where I flew to New York and paid for my own ticket and hotel and then was reimbursed). Truly, I've spent much more money actually setting up my photography business than I may ever make back. I don't know that I will be able to ever make a true profit from my photography and while I am a sole prop, have an EIN number, have a business license with my city, donated as my business to non-profits in 2021, etc. I don't know if or how I should be reporting because I'm so worried I'll always just be a "hobbyist"/I don't think I'll be able to be considered a "business" by the IRS. What should I do?
If you are seeking and have a reasonable expectation of making a profit through your Etsy shop and photography, then you may consider yourself a business. Even if it is never your main source of income, it can still be classified as a business. It's not uncommon for businesses to show a loss, particularly in their early years, but if your business continues to show losses for several years then the IRS may determine that you are not seeking a profit motive and are only pursuing these activities as a hobby. This TurboTax article may help you differentiate between the two and determine how you should report your income for these activities as well as tips to run them in a more "business-like" manner.
Another question is whether this is one business or two. If the items you sell on your Etsy shop are related to your photography, you can combine them into one. However, if not, they should each be reported as a separate business.
If you report as a business, that would require upgrading to TurboTax Online Self-Employed. You would not be able to report business income in the free edition. After entering your business income, you may also deduct expenses that you incurred for your business. You would report all income you received, but the flight to New York, the hotel, as well as any meals you ate while traveling would all be deductible expenses, provided that the trip was a business trip and not primarily for pleasure. Those are good examples of expenses that you would not be able to take if your photography was primarily a hobby. If you report as a hobby, you must report all gross income, reduced only by the cost of the goods that you sold.