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March 4, 2025
Question

I play in a band as a hobby. 6 members. I distributed $200 to each member but I provided W9 so the venue 1099 was for $1200. How do I report the distribution?

  • March 4, 2025
  • 1 reply
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    1 reply

    CatinaT1
    March 4, 2025

    This is a business expense. Even though you consider it a hobby, the IRS considers this type of income self-employment and requires you to to file a Schedule C and pay self-employment tax.

     

    You will enter this under Self Employment in Wages and Income.

     

    You will select how you received this income, whether it was a 1099-NEC or a 1099-MISC.

     

     

    You will have the opportunity to enter any expenses you had associated with earning this money, including the payments you made to your bandmates. TurboTax will give you recommended categories for expenses. If you scroll down to the bottom, you will find a section for Less Common expenses. There will be several pages of less common expenses. If you click on page 2, you will find a category named Contract Labor. Here is where you will enter the amount you paid to your bandmates.

     

     

    These links will be helpful to you:

    Self-Employed Tax Center 

    Tax information for Businesses 

    Know the difference between a hobby and a business

     

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