Earning side income: Is it a hobby or a business?

  Whether it’s something they’ve been doing for years or something they just started to make extra money, taxpayers must report income earned from hobbies in 2020 on next year’s tax return. What the difference between a hobby and a business? A business operates to make a profit. People engage in a hobby for sport or recreation, not to make a profit. Here are nine things taxpayer must consider when determining if an activity is a hobby or a business: … Continued