Well here are the details:

Previously I registered my business on the city level at the court building and got a DBA name. Previously I also licensed my business at the city level at City Hall. Each year I am taxed at the city level with a city license.

I have done nothing else on the state or federal level. I have no tax id number for example. From what you explained to me, Frob, It seem that because nothing was done on the state and federl level I do not have a business on the state and federal level. This would be great for me.

The city sees me as having a business but since nothing was done on the state or federal level I am hoping It is a hobby at the state and federal level and I won't be audited or have illegaly not filed taxes. I don't want to be audited or have done something illegal. I thought I'd ask you if it is a hobby before calling the state level and the IRS. From what you explained I think it is a hobby.

Also, before I call the State and Federal authorities I wanted to ask you how much can be earned when one's efforts are a hobby before it needs to be made some sort of business.

I am really appreciative Frob,

Josheir

Last I recall (I have three close relatives who are accountants who talk about these things around me) the reporting limit was either $400 or $600 per year. If you're making under that you are generally considered part of the underground economy and aren't strictly required to report it. That's simple things like music lessons or mowing yards or doing other minimal work.

Once you cross that level it must be reported through various tax forms. Below that level and reporting it is generally encouraged but optional. I've heard both my dad and my uncle advise people to report everything once it was over $200 per year.

Frob,

Let's see if I get this right:

I never did register any business with the Federal government. I have earned no income. Because of these two factors there is no business and I have done nothing wrong and I won't be taxed.

Now if I do make income it might be a hobby. If it is a hobby with earnings it is reported annualy.

A hobby without earnings wouldn't be filed either. Now, Is this what we're calling a pastime?

Hopefully,

Josh

I never did register any business with the Federal government. I have earned no income. Because of these two factors there is no business

Correct. No financial activity means it isn't a business.

I have done nothing wrong

You may have done other things wrong, just not that specific thing.

A hobby without earnings wouldn't be filed either. Now, Is this what we're calling a pastime?

Correct.

If you made no money, and you didn't report it as a loss from a business, the yes, nothing needs to be filed. If you reported it as a loss from a business you can only do that twice and it needs to show up as a business if/when the IRS does an audit, not as a hobby.

You can spend all the money you want on your hobbies and pastimes, but you can't deduct that from taxes as a business loss. That is just you spending your money on a hobby.

Thank you, that's a funny joke!

Josh