Juanita Knits Blankets as a Hobby and Sells Them

question 129

Multiple Choice

Juanita knits blankets as a hobby and sells them.In the current year,she earns $5,000 from her blanket sales and incurs expenses of $600.Juanita does not itemize deductions.On her tax return,she should

• A)report $5,000 of hobby income and deduct $500 of hobby expenses from AGI.
• B)report $5,000 of hobby income and deduct $400 of hobby expenses for AGI.
• C)report $5,000 of hobby income and deduct nothing from AGI since Juanita does not itemize deductions.
• D)report no hobby income and no hobby deductions.

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Definitions:

Outcome Evaluation

The process of determining the results or impacts of an activity or program.

Impact Evaluation

The systematic analysis of the changes that can be attributed to a particular intervention, such as a program or policy.

Process Evaluation

An assessment technique focused on the implementation process of a program or intervention, examining its fidelity, quality, and reach.

Administrative Policies

Guidelines and rules established by organizations to govern operations and decisions.