NOT a tax professional, but past experience and just reviewing the 1040 guidelines yields the following: You basically have two choices. 1. Include the amount as part of your income (Schedule 1, line 8). You will not have to pay additional self-employment tax, but you also cannot take deductions to this amount. Income should typically be less than $400 annually, but if you've made a "profit" for 3 of the past 5 years, you're going to be in a weird position between claiming it as a hobby vs. a business (hobbies aren't supposed to be a consistent source of income). 2. Declare the income as a business on Schedule C. You will have to pay self-employment tax, but can take deductions for expenses incurred. Definitely would need to consult with a tax professional on this level for guidance as to deducting things like home office space, internet usage, subscriptions, product purchases, etc. If you try to balance this to a net zero over the course of years, you'll be back in the weird position as the IRS may question your "profit motive" and it may become audit bait. Many freelance writers or artists find themselves in similarly awkward positions until either unabashedly successful (and paying taxes like any other self-employed entrepreneur) or giving up entirely for some income-free hobby like fishing or bowling. Personally, my writing still has me in group 1 above, taking a few bucks and contributors' copies here and there, but the income tax burden is negligible in the big scheme of things since it isn't a considerable part of my annual income. Oh, assuming United States for this discussion. No idea how other countries handle it. Hope that helps. Additional FYI - Your state may also require you collect sales tax. Traditionally, services would not be taxed this way since nothing tangible is changing hands, but welcome to the 21st century. It could be argued that a fee charged to players is similar enough to a "ticket" to an event to be considered taxable in this way. I imagine this is not a debate you want to have with your state agency. "Unlike many other states, California does not tax services unless they are an integral part of a taxable transfer of property." Yay.