Content creator income on Schedule C or E? Not really a business
In 2023, my daughter graduated as a full-time college student and was a dependent on my tax return. She got a full-time W2 job in July. During this time, she started making YouTube videos showing off her hobby. The videos were monetized with YouTube, so she got a few thousand dollars (less income than her 9-5 job income, though).
The 1099-MISC classifies the incomes as "royalties." Can she use Schedule E and treat the YouTube income like "royalty income from intellectual property," or does she have to use Schedule C and treat it like "self-employment as a writer, artist, performer"?
She does not use anyone to edit or produce her videos. She does it all herself. She really doesn't have expenses to deduct, so she does not benefit from considering this work a "business."
