A hobby activity can result in all of the hobby income being included in AGI and no deductions being allowed.

Question

Quizplus · Accepted Answer

Income from a hobby activity is reported on Schedule 1 (Form 1040) as "other income" and is included in the taxpayer's adjusted gross income (AGI). However, hobby expenses are generally not deductible, except to the extent that they exceed 2% of the taxpayer's AGI and are itemized on Schedule A.

A Hobby Activity Can Result in All of the Hobby