Alaska Small Business Development Center

Know the Difference Between a Hobby and a Business

November 21, 2022

Sometimes knowing the distinction between a hobby and business isn’t always clear cut. The IRS has provided resources to assist in understanding the difference.

The IRS provides the following information to help a taxpayer determine if their hobby qualifies as a business:

  • Business Activities
  • Five Things to Remember about Hobby Income
  • Earning side income: Is it a hobby or a business

See the related fact sheet on IRS.gov.

Recent News

Alaska SBDC Awarded SBA Business Champion Award for NSBW

TREND SBIR Phase 0 2024 Competition Opens July 9th

ANSEP Students Explore Entrepreneurship with Alaska SBDC!

Meet Up & Clean Up with Anchorage SBDC!

Small Business Owners from Alaska Honored by SBA Alaska District Office During National Small Business Week April 28 to May 4, 2024