Advice, Preparation . . . Results™

Earning money from your hobby?

Here’s a bookkeeping fact you may not know: if you earn income from your hobbies, you must report those earnings to the IRS.

Reporting hobby income differs from reporting business income. If you’re not sure whether your activity classifies as business or hobby, the IRS offers 9 factors to help you determine.

Once you identify the project as a hobby, you can deduct ordinary and necessary expenses, similar to a business. Unlike a business, though, you can only deduct hobby expenses up to the amount you earn as income.

Expenses may fall into three types and must be itemized on your return to take the deduction. Publication 535, Business Expenses (also applies to hobbies), provides guidelines on what you can deduct and how to deduct expenses.

Additional resources available from the IRS for taxpayers who report hobby income include:

If all this information begins taking the fun out of your hobby, the experienced tax preparation team at Patrick & Robinson CPAs can help eliminate worry for you. Contact us at Office@CPAsite.com or 904-396-5400.

« »

What Our Clients Are Saying

My primary reason for doing business with Tim is the feeling of trust I’ve always had.  
Kimberly Ashley, Kim Smith Writes

Frequently Asked Questions

Q.

What is the difference between certified public accountants (CPAs) and other accountants?

A.

CPAs achieve high standards of education and then pass rigorous examinations. In addition, they’re regulated by their resident state, must meet strict continuing education requirements, submit to peer review, and...

Read more...

Locations

4029 Atlantic Boulevard, Jacksonville, Florida 32207
6000-A Sawgrass Village Circle, Suite 1, Ponte Vedra Beach, Florida 32082

 

Copyright © 2018 Patrick & Raines CPAs, LLC.
All rights reserved. Privacy Policy | Terms of Use