06/02/2026
Are you earning extra income from a side gig or something you love doing? The IRS reminds taxpayers that there’s an important difference between a hobby and a business and it affects how your income is reported.
A few quick things to know:
• A business is run with the intent to make a profit; a hobby is mainly for enjoyment.
• The IRS looks at factors like recordkeeping, reliance on the income, and efforts to improve profitability.
• If you were paid through apps or digital assets, you may receive forms like 1099-K or 1099-DA—and that income is taxable.
Good recordkeeping throughout the year can make filing much easier.
Read the full IRS tax tip: https://content.govdelivery.com/accounts/USIRS/bulletins/41a111b