I am self employed, my business operated at a loss in 2022 - do I still report my sales as my income?

Yes, you report all income and any ordinary, necessary expenses used to earn that income. Any money earned for services performed is considered business income and self-employment if not done for an employer or outside of your normal employment.  In your case it's music lessons.  The link provided will show details to help you complete your business income.

• Reporting Self-Employment Income

For your information I have provided information about business versus hobby income per the IRS.

This IRS link will guide you: Business or Hobby?

Key elements:

1. A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
2. A business allows you to deduct the costs necessary to obtain the income.  The law explains that 'you must be engaged in the activity to produce a profit'.  The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.