Question

Which of the following statement is not correct for reporting a hobby on an income tax return

Answer 1

Answer:

The statement that is not correct about reporting a hobby on an income tax return is that hobby income and expenses are reported on Schedule C.

Explanation:

• Schedule A of the income tax return deals with the information to be dispensed about hobby income and expenses.
• To be specific, Schedule 1, line 21 under Schedule A contains the fields to be filled for information about hobby income and expenses.
• This income is not included in the 'self-employment' income because it does not allocate a proprietorship.