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I made a small amount of money for a blog I write, and I'm wondering how to enter it into my tax form. I was paid via PayPal so I have no W-2. (And not reporting it to the IRS is not a viable option.)

I've tried searching Google but can't seem to find the magic words.

Can anyone help me out?

  • You need to provide some additional information. Is this the only income you earned during the year? If it is additional income, do you have another job where you are paid with a W-2 form, or are you self-employed and paying quarterly estimated taxes at present? The fact that PayPal didn't give you a form (wouldn't be a W-2, as they're not your employer) isn't a problem, as you have documentation of the income from PayPal records. – Ellie Kesselman Jan 26 '12 at 17:02
  • additional income; I have a "regular" job with a W-2 form. – Jason S Jan 26 '12 at 17:32
  • It wouldn't be W-2 income anyway. More likely it would be a 1099 (not that you would have that either) – JohnFx Jan 26 '12 at 21:37
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It should be reported as Miscellaneous Income. Congratulations for wanting to report this income.

  • so is it "Self Employment Income"? – Jason S Jan 26 '12 at 17:33
  • It falls under Self Employment. – mhoran_psprep Jan 26 '12 at 17:44
  • I don't know how much you've earned from your side job, but if you are not confident about preparing your own taxes with a Schedule C, you may have increased your tax filing costs. – Sun Dec 3 '13 at 18:22
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You can report it as "hobby" income, and then you won't be paying self-employment taxes. You can also deduct the blog-related expenses from that income (subject to the 2% limit though).

See this IRS pub on the "hobby" income.

  • Ok, I'll ask - is there a limit to this, i.e. above $XXX one should move to the Schedule C self employed? The self employed creates ability to use a Solo 401(k), and write off expenses against the income, no 2%, correct? – JTP - Apologise to Monica Dec 3 '13 at 18:07
  • @joe if its consistently profitable it should become a schedule C business – littleadv Dec 4 '13 at 1:16

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