06/02/2026
💡 Tuesday Tax Tips | June 2, 2026
📋 Hobby or Business? Know the Difference!
Many people earn extra income from activities they enjoy, but when it comes to taxes, the IRS treats a hobby differently than a business.
✅ For Taxpayers:
If you're selling crafts, creating content, tutoring, consulting, or earning money from a side activity, ask yourself:
• Do you operate with the intent to make a profit?
• Do you keep business records?
• Do you regularly market or promote your services?
The answers may help determine whether your activity is considered a business or a hobby for tax purposes.
✅ For Tax Preparers:
Help clients properly classify their activities and maintain accurate records. Correct classification can impact income reporting, deductions, and overall tax compliance.
📌 Bonus Tip:
Follow IRS Verified social media accounts and IRS e-News services for trusted updates, tax law changes, and important filing information throughout the year.
🎯 Good recordkeeping and understanding tax rules today can help avoid surprises during the next filing season.
📲 DM us or click the link in bio to connect with a tax expert who can help you stay compliant, maximize opportunities, and plan ahead!