Here’s what taxpayers need to know about paying taxes on their hobby activities
Many people are engaged in hobby activities that are also a source of income. For example, some people started selling handmade items during the pandemic. These people must report this income on their tax return.
A hobby is any activity that a person pursues because they enjoy it and with no intention of making a profit. This differs from those that operate a business with the intention of making a profit.
In determining whether their activity is a business or hobby, taxpayers must consider nine factors.
Original Article Source Credits: IRS, https://www.irs.gov/
Article Written By: NA
Original Article Posted on: 30th June 2021