In ProConnect, you report gross income from a hobby on Line 21, Form 1040, and hobby expenses on Schedule A, Miscellaneous Deductions.
How to report hobby income on Form 1040:
- From the Input Return tab, go to Income ⮕ SS Benefits, Alimony, Misc. Income.
- Under the Alimony and Other Income section, enter your hobby income in the Other income field.
How to report hobby expenses on Form 1040:
- From the Input Return tab, go to Deductions ⮕ Itemized Deductions (Sch. A).
- Click the Miscellaneous & Other tab at the top.
- Under State Miscellaneous Deductions (Subject to 2% AGI limitation), locate the Miscellaneous Deductions (2% AGI) subsection.
- Enter any expense exceeding your total income received in the Other miscellaneous deductions field.
For more information about hobby income and expenses, see IRS Publication 529 Miscellaneous Deductions.