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June 3, 2019
Question

My husband received a 1099-MISC from Amazon for royalties from a book he sold. Writing is a hobby, not a business...where do I place this income?

  • June 3, 2019
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1 reply

Employee
June 3, 2019

Here are the steps to enter Hobby income:

·         Sign into your account and click Take me to my return

·         Select Federal (left navigation panel)

·         Select Wages & Income (top of page)

·         Scroll down (under All income) to locate Less Common Income and select Show more

·         Select Start or Revisit for Miscellaneous Income, 1099-A, 1099-C (click on screenshot below for detail)

·         Select Start for Hobby income and expenses (click on screenshot below for detail)

·         TurboTax will guide you through entering your hobby income and expenses

  On this kind of income you do not need to pay self-employment tax.  However, the amount of expenses you can deduct usually are limited to the amount of hobby earnings you have, and must be declared as itemized deductions, so it may not reduce all of the income to zero on the tax return.

Here is an IRS website that has more information on this:  https://www.irs.gov/uac/newsroom/five-basic-tax-tips-about-hobbies