Here’s what taxpayers need to know about paying taxes on their hobby activities

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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.

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Original Article Source Credits: IRS, https://www.irs.gov/

Article Written By: NA

Original Article Posted on: 30th June 2021

Link to Original Article: https://www.irs.gov/newsroom/heres-what-taxpayers-need-to-know-about-paying-taxes-on-their-hobby-activities

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