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There is no requirement for it to be your "primary income" for that matter the business doesn't need to show a profit just an income.I would think that you would have to make at least 50% of your income to qualify your DM work as your primary income with the IRS. Then you would be able to claim expenses.
The IRS has very tight rules on who can and cannot be considered an independent contractor.
Actually quite a few people end acquiescing to treatment as independent contractors for tax purposes because their "employer" reported their "wages" on a 1099-MISC, rather than a W-2. The IRS loves it, since they have to pay double the social security taxes (both the employer and employee share). You can challenge it, but very few do since it means ratting out your "employer" and will likely mean the end of your "job."
As long as you don't go beyond the hobby test (showing a profit 3 out of 5 years) it is rarely challenged. Even if you go into the third year without a profit, your chances of being asked to explain increase, but even not having a profit in the third year can be permissible.
I would think that you would have to make at least 50% of your income to qualify your DM work as your primary income with the IRS. Then you would be able to claim expenses.
There have been years I have filed multiple Schedule Cs - all for pitifully small amounts. Doesn't matter how much you make, only that you intend it to be a source of income rather than a hobby.
Doesn't matter how much you make, only that you intend it to be a source of income rather than a hobby.