06/02/2026
You started it because you loved it. Then people started paying you for it. Now you're wondering if the IRS cares.
Spoiler: they do. β οΈ
The difference between a hobby and a business isn't just a label, it affects what you can deduct, what you owe, and what happens if the IRS takes a closer look.
There's a clear framework for figuring out which side you're on. The IRS looks at 8 specific factors, things like whether you're keeping records, whether you're adjusting operations to improve profit, and whether you actually depend on the income.
Swipe through for the full breakdown. β‘οΈ
One thing that applies no matter what: if you're getting paid through Venmo, PayPal, Cash App, or in crypto, the IRS is receiving a report of those transactions. That income needs to be reported either way.
If any of this has you thinking about your own tax situation, our free training is a great place to start:
π www.stoptheirsnow.com/irs-tax-relief-optin
Alissa K. Hollinger, CPA, EA, CTRS | Hollinger Tax Resolution