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February 6, 2022
Question

I entered my hobby income, which was $815 after expenses. I used the misc. 1090 as promted and entered my total income and total expenses. Why did my refund drop $600?

  • February 6, 2022
  • 1 reply
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This means I only made $200 since I'm paying $600 in taxes??

1 reply

ColeenD3
February 6, 2022

Where did you enter expenses? Hobby expenses are not deductible. You must pay taxes on the entire hobby income.

 

Beginning in 2018, the IRS doesn't allow you to deduct hobby expenses from hobby income. you must claim all hobby income and are not permitted to reduce that income by any expenses