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Hobby income reported on 1099-NEC

Level 3

Client received a 1099 for a hobby.  Her expenses far outweigh her income, and they have for years.  Is there anywhere to report the expenses on the 1040?  She could report them on misc expenses and count them at the state level only if she itemizes, which she doesn't.  

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3 Replies 3
Level 15

"She could report them on misc expenses and count them at the state level only if she itemizes, which she doesn't."

I think more details would be helpful.

How are there misc expenses associated with a Hobby and they can be deductible? What would these be? What are business people hiring her to do for them, that they keep reporting it as business expense to them?

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"Level Up" is a gaming function, not a real life function.
Level 13

Cost of Goods Sold (COGS) are not included as income for a hobby, but no other expenses are deductible on the Federal return for a hobby.

Level 15

Client should be reporting hobby income all along, whether or not she receives a 1099.


ex-AllStar
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