As of when are hobby expenses not deductible?
As of April 2022, they are, according to Turbo Tax;
- Open your TurboTax software and continue your return
- Select the Federal Taxes tab (this is the Personal tab in TurboTax Home and Business)
- In the Wages & Income section, select I’ll choose what I work on
- Scroll down to Less Common Income. Select Start next to Miscellaneous Income, 1099-A, 1099-C
- Select Start next to Hobby income and expenses
- Answer Yes on Do you have hobby income or expenses?
- On the next screen, enter the Total income reported on your Form 1099-K. Don’t enter any expenses.
- Select Done
- To deduct the cost of items sold: while still in Miscellaneous Income, select Start next to Other reportable income
- Answer Yes on Any Other Taxable Income?
- Enter Form 1099-K in the Description field. Enter the total cost of the items sold in the Amount field as a negative number. Note that the amount can’t exceed the income reported on Form 1099-K.