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

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