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hdselman
New Member

What if i have income from a hobby?

 
1 Reply
DanielV01
Expert Alumni

What if i have income from a hobby?

Hobby income is reportable.  You will report this income as "Other Uncommon Income" in the Wages and Income tab in TurboTax.  Unlike self-employment, hobby income is earned "casually" when you are not really trying to make money on the activity.  An example is someone who enters a local BBQ event and wins a money prize because their food was really good.  On this kind of income you do not need to pay self-employment tax.  However, the amount of expenses you can deduct usually are limited to the amount of hobby earnings you have, and must be declared as itemized deductions, so it may not reduce all of the income to zero on the tax return.

Here is an IRS website that has more information on this:  https://www.irs.gov/uac/newsroom/five-basic-tax-tips-about-hobbies

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