Income from holiday side hustle can I deduct business expenses

Hello toniisgolden,

Great question!
If you are selling the holiday baskets as a hobby, you are not able to deduct expenses.
If you want to sell the holiday baskets as a side gig as an actual business, then you will need to file your taxes as self-employed. That will enable you to be able to deduct your expenses from your income. That will also allow any profit made to be taxed as being self-employed, which means that part of any extra tax you pay will go towards Medicare and social security.

You will end up filing a schedule C when you complete your tax return for 2023.
You will want to make sure that you are keeping accurate records of your income, as well as your expenses. That will help you out when you complete your 2023 tax return.

Thanks,
Sean