Hobby income reported via 1099-MISC

Forum|Forum|4 years ago
April 6, 2022
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My husband reviews products on YouTube as a hobby and received part of his hobby income on 1099-MISC in Box 2 (royalties). Let's say his total hobby income is $1000 but a part of it, lets say, $900 was reported on 1099-MISC and the rest $100 not reported on any 1099.

Turbo tax has a section to fill out 1099-MISC. So I declared the $900 under 1099-MISC. Now, it is asking me the source of 1099-MISC and both the options don't suit my situation. This is neither an investment nor a business but more like a hobby.

a) Investment income from property

b) Royalty income from your business, including artist royalties or operating a natural resources business (Schedule C)

How should I correctly report this 1099-MISC income as I don't want to report this as business income on Schedule C?

TurboTax Self Employed Online

LoganathanB

Enter the income in box 3 other income.

It will ask you these questions only if you enter the income in boxes 1 or 2

Open your tax return
Click on Wages and income
Search for 1099Misc
Click on the jump to 1099-misc
Add 1099 Misc or Edit
Enter the info from your form into the corresponding boxes.

vidhi0007Author

But I received income in box 2 of 1099 MISC, should I report it incorrectly on a different box?

LenaH

No, please enter your income into Box 2 when inputting your 1099-MISC. On the next screen, choose Investment income from property as this income should be reported on a Schedule E.

You stated that creating videos on YouTube is more like a hobby, rather than a business. It also is not your primary source of income. In general, royalty income reported in box 2 of the 1099-MISC is reported on Schedule E, unless you are "in the business" of performing a certain activity, and that it is a primary source of income.

This income will flow from your Schedule E to Schedule 1, Line 5. This income will not be subject to self-employment tax, as is the case with hobby income.

@vidhi0007

[Edited 4/6/22 l 5:12AM PST]

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