The National Directory of Certified Public Accountants

Ask A CPA - Sole Proprietorship - Schedule C

Hobby Activity - Is It Reported For Tax Purposes?

Hobby income is reported as other income on Form 1040 line 21 and expenses are deductible only up to income and limited by the 2% of AGI floor and reported on Schedule A Miscellaneous itemized deductions. You are not allowed a hobby activity loss.

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