Customer races stock car and got a 1099 for 600.00 this is not anything he expects to make money at and spends far more than 600.00 per season so it is not a sch c business i know hobby income goes on line 21 of form 1040 but where do i get to subtract the 600.00 in expenses { spens far more than 600.00 but like casino winnings i can take off up to the amount on this 1099
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Schedule A Miscellaneous subject to 2%. -
Dirty Deal from the IRS
Hobbies are a bad deal for taxpayers. In your situation, $600 goes on line 21 as "Other Income".
The expenses do go on Schedule A subject to 2%, but the expenses cannot exceed $600.
Bummer.Comment
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Welcome to the forum, SIMPLY TAXES.
Did you try searching this forum, the IRS web site, or Pub 17, for your answer before posting here?
What is the nature of his hobby expenses? They may not all be tax deductible, even if in his mind they are all related to his hobby. While $600 is a pretty low bar to get over, I would suggest at least asking the question of the client.
Also, you mention the 1099 form but you need to find out if he also received other income that wasn't reported on 1099."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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