I've looked around and haven't found a clear answer to this. So suppose in addition to their regular job someone makes a relatively small amount of income from what the IRS would classify as a hobby. It's understood that such income has to be reported. There are no significant expenses involved, so that is not an issue. The question is how to most simply report such income, i.e. avoid Schedule C which seems to also involve Schedule 1 and Schedule SE.
Some sources say to use the "Other Income" line on form 1040, but no such line exists on the current form. Is it still reported as "business income" even if it is not a business? Does the distinction only involve how expenses are deducted (Schedule C vs Schedule A)?
- posted 10 months ago