If I lose money every year, do I still need to report hobby income using Form 1099-MISC hobby income?
Regarding 1099-MISC hobby income, report hobby income on your Form 1040 as “Other income.” A hobby is an activity that has no expectation of a profit.
You can only deduct hobby expenses up to the amount of hobby income you received. If you itemize, report the deductions on Schedule A. The deductions are subject to the 2% limit. You can’t claim a loss from a hobby.
Learn about IRS Notice CP298 and how to address an IRS bill for unpaid taxes. Get help from the tax experts at H&R Block.
Get the facts from H&R Block about IRS revenue agent reports, which show the changes the IRS is proposing to your tax return after an IRS audit.
Learn more about letter 3572A and how to handle an IRS audit of your business return with help from the tax experts at H&R Block.
Not sure if you are withholding enough taxes from your paycheck given the Tax Cuts and Jobs Act? Learn how to estimate your 2018 tax liability with H&R Block.