Know the difference between a hobby and a business

Thank you to IRS- Internal Revenue Service for providing content on Know the difference between a hobby and a business.

FS-2022-38, October 2022

Most people take up hobbies for personal enjoyment, not to make a profit. Sometimes, however, the line between hobbies and businesses isn’t clear cut. There are several different factors people should consider when making the determination and the IRS provides resources to help.

The following information is available on IRS.gov to help a taxpayer determine if their hobby qualifies as a business:

• Business Activities
• Five Things to Remember about Hobby Income
• Earning side income: is it a hobby or a business?

Key questions to consider

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by IRS – Internal Revenue Service