JITA Tax Services

09/03/2026

DAY 4 — RECORDS & WORKERS 📂

Good records do more than track dollars. They help establish the facts behind your activity.

When someone performs work for your activity, document:

WHO performed the work
WHAT services were performed
WHY the payment was made
HOW the working relationship operates
HOW MUCH was paid
HOW the payment was made

Then use the facts to determine the applicable worker and reporting pathway.

The relationship comes first.
The tax form follows the facts.

And remember: keep records that show the story behind the numbers.

Day 4 of the JITA Tax Services Business or Hobby? educational series.

09/03/2026

BUSINESS OR HOBBY? — DAY 4 | RECORDS & WORKERS

When someone performs services for your income-producing activity, worker reporting begins with more than a dollar amount or a tax form.

Start with the working relationship and the underlying facts.

Document who performed the work, the services performed, the purpose of the payment, how the relationship operates, how much was paid, and the payment method.

Those facts help establish the applicable worker classification, tax responsibilities, and reporting pathway.

The relationship comes first. The tax form follows the facts.

And good records do more than track dollars—they help support the facts behind your tax reporting.

📌 Save today’s post as part of our Business or Hobby? educational series.

JITA Tax Services
Just Income Tax Answers
Year-Round Tax & Consulting Services

09/02/2026

BUSINESS OR HOBBY? | DAY 3: BUSINESS EXPENSES vs. HOBBY EXPENSES

After identifying the activity and the income it produces, the next step is examining the costs associated with that activity.

A qualifying business may deduct ordinary and necessary business expenses allowed under the applicable tax rules. Hobby activities follow the tax treatment applicable to activities not engaged in for profit.

A useful analysis begins with:

💳 What was purchased or paid for?
🎯 How was it used in the activity?
🧾 What records establish the cost and its purpose?

Good recordkeeping goes beyond collecting receipts. The records surrounding a transaction can help establish what occurred, how the expenditure relates to the activity, and the facts needed to determine its tax treatment.

🔑 Identify the activity. Identify the cost. Then determine the tax treatment that applies.

Tomorrow — Day 4: Records That Tell the Story of Your Activity.

JITA Tax Services | Just Income Tax Answers
Established January 2000

09/02/2026

BUSINESS OR HOBBY? — DAY 3 💜💛
BUSINESS EXPENSES vs. HOBBY EXPENSES

You’ve identified the activity.
You’ve identified the income.

Now let’s look at the costs.

💳 What did you purchase or pay for?
🎯 How was it used in the activity?
🧾 What records establish the cost and its purpose?

A qualifying business may deduct ordinary and necessary expenses allowed under the applicable tax rules. Hobby activities follow the rules applicable to activities not engaged in for profit.

And remember: records tell more than what you spent. They can help establish the facts behind the transaction.

🔑 Identify the activity. Identify the cost. Then determine the tax treatment that applies.

Tomorrow ➡️ Records That Tell the Story of Your Activity

JITA Tax Services
Just Income Tax Answers
Established January 2000

09/02/2026

DAY 2 💜 BUSINESS INCOME vs. HOBBY INCOME

Cash. Payment apps. Online platforms. Checks. Cards. Barter. Forms 1099.

They can all be part of the income picture.

The next step is identifying what the payment represents.

Ask:

1️⃣ What did I receive?
2️⃣ Why did I receive it?
3️⃣ What activity produced it?

From there, you can determine the reporting pathway that fits the activity.

🔑 Identify the income first. Then follow the reporting pathway that fits the activity.

Business or Hobby? — 5-Part Series
JITA Tax Services | Just Income Tax Answers

09/02/2026

BUSINESS OR HOBBY? | DAY 2: BUSINESS INCOME VS. HOBBY INCOME

Receiving income is only the beginning of the tax analysis.

Income may be received through:

💵 Cash
📱 Payment apps
💻 Online platforms
🧾 Checks
💳 Cards
🔄 Barter
📄 Forms 1099

The important next question is: What activity produced the income?

A qualifying sole-proprietor business generally follows the business-income reporting pathway, while income from an activity not engaged in for profit follows the applicable hobby-income reporting pathway.

Start with the payment → identify why it was received → identify the activity that produced it → determine the appropriate reporting pathway.

Follow JITA Tax Services this week as our Business or Hobby? education series continues.

Educational information. Individual tax circumstances vary.

08/31/2026

Business or Hobby?

08/24/2026

Sending love to my fellow memphians

08/17/2026

06/08/2026

TENNESSEE TAXPAYERS: TIME IS RUNNING SHORT

Today, June 8, 2026, is the federal disaster-relief filing deadline for many Tennessee taxpayers affected by the severe storms and flooding.

If you are not ready to file, review IRS Form 4868 immediately to determine whether you qualify to request additional time to file.

There is still time to act.

Also, don’t overlook the FEMA Individual Assistance deadline on June 10, 2026.

If you applied for FEMA assistance:

✔ Save your application number

✔ Review Correspondence

✔ Check Next Steps

✔ Monitor your email and phone for updates

✔ Keep requested documents available

Apply or check your status at:

DisasterAssistance.gov

JITA Tax Services

Established January 2000

Independently Owned & Operated

Memphis-Based Tax & Consulting Firm

Year-Round Tax & Consulting Services

Tax Professionals With Precision