Other income

Hi PBCool - Thanks for joining us today!

First you need to determine if selling kittens is a hobby or a business. Here is a great link to assist you with that: 

https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a-hobby/L5NClTTtK

The IRS generally views breeding as a hobby and not a business. Hobby income still needs to be reported on your tax return. You can only deduct hobby expenses equal to hobby income. You cannot take a loss. For Hobby Income:

When in your TurboTax account:

• Click on Federal Taxes tab
• Choose Wages and Income
• Scroll down to Less Common Income and click Start
• Scroll down to Miscellaneous Income, 1099-A, 1099-C and click Start
• Click Start to right of Hobby income and expenses

If you have determined that it is a business and not a hobby, you may report the income and expenses on Schedule C - Profit and Loss from a Business.

This link from the IRS explains further:

https://www.irs.gov/newsroom/earning-side-income-is-it-a-hobby-or-a-business

TurboTax can definitely help you with either scenario.

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