Under the old IRS definitions, for an expensive hobby like magic cards you could just consider that your lifetime year-to-year costs of participating in the hobby on average offset whatever you made from the hobby. As long as you didn't operate an actual business like a physical or digital storefront, the IRS would just consider it all hobby income. That changed after 2017.
You used to just be able to say that your hobby expenses cancelled out your hobby income, but that changed after 2017, aka not "the libs fault."
This is when I stopped bothering to sell magic cards for extra money. This was part of the Trump tax "cuts" when they increased the standard deduction but removed all sorts of other deductions.
How is hobby income taxed?
How is hobby income taxed? If you have a hobby that earns you income — or that costs you money — you can find the answer to this important question here.www.creditkarma.com
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Only if you itemize, right?
If it's not a registered business the IRS does not allow you to deduct expenses other than the miscellaneous deduction.
You don't have to report it, PayPal will report it for you...
Right but if you get the money through PayPal, PayPal remembers it for you!
Build back idiot bill has mandatory banking transaction reporting to the IRS if the account transacts more than $600 in a year. Currently, it's to report a single transaction of $10k or more, or multiple "suspicious" varied transactions that total more than 10k in a month (anti-structuring).
