Small Business

Is Your Side Income Considered a Hobby or Business for Tax Purposes?

Is Your Side Income Considered a Hobby or Business for Tax Purposes?

People have been increasingly finding ways to make some additional income outside of their full-time jobs.  

Unfortunately, just because you're able to make money from a side job or "side hustles," as some have called them, doesn't necessarily mean you'll be able to treat them as a business for tax purposes. The distinction between hobby and business ultimate determines if and how you're able to deduct expenses associated with your side activity, and that could have significant tax benefits or consequences.