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It is my understanding that if it is a hobby, you still need to report the income. And you can still take deductions, but only to the point of negating the income. But in a business, you can actually take a loss (greater than the revenue the business generates), and count it against regular income from a job or another business. However, if you continue to take a loss year after year, the IRS will eventually consider it a hobby instead of a business.
If you are making money at shows, it is a good idea to declare the income because your name will pop up if anyone checks to see a list of vendors. So you might as well keep records so that you can take legitimate deductions, too.
I am no accountant, but have asked plenty of questions of them over the years. It is probably worthwhile to pay for an appointment with a good accountant and take a list of questions to get cleared up, for your own peace of mind and to make sure you are getting the most financial advantage out of your business / hobby as possible.
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