Juanita knits blankets as a hobby and sells them.In the current year,she earns $5,000 from her blanket sales and incurs expenses of $600.Juanita does not itemize deductions.On her tax return,she should
A) report $5,000 of hobby income and deduct $500 of hobby expenses from AGI.
B) report $5,000 of hobby income and deduct $400 of hobby expenses for AGI.
C) report $5,000 of hobby income and deduct nothing from AGI since Juanita does not itemize deductions.
D) report no hobby income and no hobby deductions.
Correct Answer:
Verified
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