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I received a 1099k for a hobby. The 1099k has the gross amount but it does NOT include the fees or shipping that payment processor. where can I mark expenses?

The expesnes are aboutg 20% of the gross. TurboTax is telling me I cannot deduct hobby expenses per the IRS. Does that even include these processing and shipping fees that never hit my bank account?
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1 Reply
MaryK4
Employee Tax Expert

I received a 1099k for a hobby. The 1099k has the gross amount but it does NOT include the fees or shipping that payment processor. where can I mark expenses?

Unfortunately, you cannot deduct expenses associated with hobby income.  A hobby is an activity that you do not intend to pursue a profit.  Just because you enjoy the activity does not necessarily mean that it cannot qualify as a business.  See Hobby Expenses and People should know if their pastime is a hobby or a business

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