<prompt> Human: This year my DJ hobby seemed to have become more of a business. I made over 3000 and spent even more than that on travel, equipment, and music, as well as building a studio in my home. I also have a full-time Salaried position. What are my options requirements with tax on this extra income and deducting my business expenses?Thank you :  <response>: Your requirement is to report all your business income.Your option is to deduct your expenses. I feel like reporting your expenses as equal to your income net gain of 0 is safer than reporting a business loss, especially if youre doing it on your own without a tax preparer. Then theres the whole issue of full deduction on equipment vs deprecation, home office use, etc. For 3000, I think you can easily find that amount to expense to make your net income 0. Are you getting 1099s from anyone?The IRS is real stingy about correctly identifying a business as opposed to a hobby, but it sounds like you qualify no problem. 