Sue Cline on mon 29 mar 04
I know some of the tax questions are beat to death this time of year. I'll try to be very specific.
I am not declaring my pottery work as a business because it's just not - yet - and I still have the dreaded day job. However, I do have income and I pay state sales tax on what I sell.
I am declaring my income as "hobby income" on my federal tax form 1040 and have read in the IRS guidelines that we may deduct our expenses UP TO the amount of income (i.e., cannot declare more expenses that income, therefore, a "loss.") if we itemize deductions. I DO itemize my deductions, but cannot find the line or worksheet the right place to state the expenses for this deduction.
Could anyone point me to the correct line or worksheet?
Thanks very much, everyone.