Video Tips: Hobby Vs. Business in Terms of Taxes Under the hobby loss rules, when an activity of the taxpayer is deemed to be a hobby (not for profit), the income is reported on line 8j, 'Activity not engaged in for profit income,' Schedule 1 of the 2025 draft Form 1040. Expenses are not deductible. Since such an activity is not for profit, there are no self-employment tax issues.
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