Do you or someone you know have a side hustle? As a rising number of Americans earn side income, the IRS is reminding taxpayers that money earned this way is taxable. Depending on whether the IRS considers the activity to be a hobby or a business, the tax treatment is very different. Businesses can generally deduct ordinary expenses they incur on their tax returns. For hobbies, the deductibility of expenses is limited. To decide whether you’re running a business or enjoying a hobby, the IRS looks at key factors, including whether you display a profit motive, operate in a businesslike manner and maintain a good recordkeeping system. Here are more tips from the IRS: https://bit.ly/3VJi4BG. Contact us with questions. © 2024