Hobby income reported on 1099-misc, how do I enter the expenses associated with the income?

The expenses for your hobby can be deducted on itemized deductions and you are allowed an amount equal to or lesser than your winnings.

The area where this can be deducted is subject to a threshold of greater than 2% of your adjusted gross income (AGI) before there is any deductible amount added to the other itemized deductions.

To record your hobby income and deductions you can follow the steps here.

1. Sign into your TurboTax Premier account - desktop 
2. Search hobby income in the upper right
3. Then Jump to hobby income, loss
4. Enter your income and expenses
5. TurboTax will calculate your allowable expense and total itemized deductions

Be sure to add all itemized deductions to maximize the hobby expenses.