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Do I have to report this income?

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P

petty.fan

Guest
What is the name of your state? Ca

I run a message board (a very large one) for sports cars and we just put a donation button on there and already in one week, we have received 1,000.00 I was going to split all of this money we get with my other 4 admins that help run the site but now I'm not so sure about a few things:

1. Are they considered Employee's now?
2. Do I have to claim that money for taxes?
3. What do I need to do to cover myself (if anything)


The site isn't a commercial site or anything, just done for fun. We put the donate button up to help pay for the server bandwidth and general operation costs, etc but the money isn't required to be a member.

Thank you for your help.
 


A

Andy Brown

Guest
This would be considered Hobby income, which is reported on Line 21 of the 1040. If you itemize deductions on Schedule A, then you can deduct expenses up to the amount of income.

If your income of $1000 is split in 4 equal shares, then each you would declare $250 of line 21, and deduct 1/4 of the expenses of Schedule A.
 

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