 | 
02-06-2008, 12:31 AM
| | Junior Member | | Join Date: Feb 2008 Location: California
Posts: 6
| | | 1099 MISC - Hobby or Biz
What is the name of your state? CA
I have a 1099 MISC from a company that I do monthly web maintenance on. I do it as a hobby and they pay me... so does that make it a business? Are there more forms I need to fill out or other things I need to do because of this? I'm using the taxcut program and am stuck at that point. It seems you get more back with a hobby, but I need to do this correctly.
Thank You |
02-06-2008, 04:44 AM
| | Member | | Join Date: Jul 2007 Location: Houston, Texas
Posts: 423
| | Quote:
Originally Posted by webslingers  What is the name of your state? CA
I have a 1099 MISC from a company that I do monthly web maintenance on. I do it as a hobby and they pay me... so does that make it a business? Are there more forms I need to fill out or other things I need to do because of this? I'm using the taxcut program and am stuck at that point. It seems you get more back with a hobby, but I need to do this correctly.
Thank You | If you are getting a 1099-Misc with the amount in box 7, you will need to file a Schedule C. The difference between a business and a hobby is, if it is a hobby, your expenses cannot exceed your income. |
02-06-2008, 08:09 AM
| | Senior Member | | Join Date: Feb 2007
Posts: 8,229
| | | Business income is income.
Hobby income is income
Business losses are potential deductible
Hobby losses are just money you spent on your hobby and are not. |
02-06-2008, 03:15 PM
| | Junior Member | | Join Date: Feb 2008 Location: California
Posts: 6
| | I don't plan on filing any deductions. I just want to know if I can/should file this 1099 MISC as a hobby or if I have to do it as a business. Does it matter if there are no deductions? Thank god there are people and sites like this to help people like me.  Let me know if there is any info that I can give you to help me out as I don't really know what to ask.
Thanks |
02-12-2008, 01:23 PM
| | Junior Member | | Join Date: Feb 2008 Location: California
Posts: 6
| | | Anyone else have insight on this? |
02-12-2008, 02:20 PM
| | Member | | Join Date: Jul 2007 Location: Houston, Texas
Posts: 423
| | Quote:
Originally Posted by webslingers I don't plan on filing any deductions. I just want to know if I can/should file this 1099 MISC as a hobby or if I have to do it as a business. Does it matter if there are no deductions? Thank god there are people and sites like this to help people like me. Let me know if there is any info that I can give you to help me out as I don't really know what to ask.
Thanks | If the income was substantial, you may change your mind about deductions. |
02-12-2008, 03:06 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 6,673
| | | Even if it is a hobby, you can deduct the things it cost you to earn the income. It's just that you won't be able to take more than your income in deductions.
__________________
When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne) |
02-12-2008, 03:34 PM
| | Junior Member | | Join Date: Feb 2008 Location: California
Posts: 6
| | Ok, I guess I should go get "people" and get it done right.
I noticed that I would get more back if done as a hobby. I owe the IRS a few bucks, and with claiming this as a hobby, I would be able to pay the IRS and have some money left over. If I do it as a business, then I still owe the IRS. That may change if I start deductions though. My problem with deductions, is that I don't have reciepts or anything like that. I drove to the business 3 times per month which is about 100 miles round trip, but other than that I don't have a clue what I would deduct.
I'm glad this only happens once a year. |
02-12-2008, 03:59 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 6,673
| | | There is no way you could get more back if it were a hobby rather than a business. The same rules would apply to the income between hobby and business and better rules apply to the deductions if a business rather than a hobby. I think you do need people this year.
__________________
When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne) |
02-12-2008, 04:27 PM
| | Junior Member | | Join Date: Feb 2008 Location: California
Posts: 6
| | | I agree. I don't think the "box" is helping me much this year. Going through taxcut, it shows different refunds based on hobby or business. Anyone have suggestions on "people"? H&R Block is close to my house and probably where I will go if there are no better suggestions. Thank you all for the help so far! |
02-12-2008, 04:31 PM
| | Senior Member | | Join Date: Jan 2006
Posts: 9,771
| | Quote:
Originally Posted by irsos If you are getting a 1099-Misc with the amount in box 7, you will need to file a Schedule C. The difference between a business and a hobby is, if it is a hobby, your expenses cannot exceed your income. |
HUH???????? |
02-12-2008, 05:00 PM
| | Member | | Join Date: Jul 2007 Location: Houston, Texas
Posts: 423
| | Quote:
Originally Posted by tranquility There is no way you could get more back if it were a hobby rather than a business. The same rules would apply to the income between hobby and business and better rules apply to the deductions if a business rather than a hobby. I think you do need people this year. | Yes, it is possible because of Earned Income Credit. |
02-12-2008, 05:20 PM
| | Junior Member | | Join Date: Feb 2008 Location: California
Posts: 6
| | | What I still don't get is how to decide on a hobby or business. I mean, it is a hobby... it's what I do for fun, but I get paid for it. I would naturally put hobby, but this is the IRS... so just because I call it a hobby, doesn't make it one. |
02-12-2008, 05:35 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 6,673
| | Quote: |
Yes, it is possible because of Earned Income Credit.
| Of course. There are certain numbers where more income will equal less taxes. Good catch.
__________________
When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne) | |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | | | | Thread Tools | | | | Display Modes | Rate This Thread |  Linear Mode | | 
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts
HTML code is Off | | | |
All times are GMT -5. The time now is 04:26 PM.
