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How to report hobby income and expenses on Form 1040 in Lacerte
by Intuit•4• Updated 5 months ago
In Lacerte, you report gross income from a hobby on Schedule 1 as Other Income. Hobby expenses are no longer deductible on the Schedule A due to the Tax Cuts and Jobs Act, but may still be deductible for your state.
How to report hobby income on Schedule 1:
- Go to Screen 14.1, SS Benefits, Alimony, Miscellaneous Income.
- Under the Alimony and Other Income section, enter your hobby income in the Other income field.
How to report hobby expenses for the state:
- Go to Screen 25, Itemized Deductions (Sch. A).
- 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.