2026 Resources
Tax guides and legal explainers for makers, Etsy sellers, and side-hustlers navigating the hobby-to-business transition in 2026.
Tax Basics
What Is Hobby Income? How the IRS Defines It and Why It Matters
Hobby income is money earned from an activity the IRS doesn't consider a business. It's taxable at any amount, expenses can't offset it under current rules, and most people don't realize any of that until a 1099 shows up. Here's what it actually means.
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Updated for 2026 Tax YearHobby Income Limits: The IRS Thresholds That Actually Matter
There is no hobby income exemption — all hobby income is taxable. Understand the specific dollar thresholds that trigger different IRS rules, reporting requirements, and tax treatment under current law.
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Updated for 2026 Tax YearHobby Farm Taxes: How the IRS Evaluates Farm Activities Under IRC §183
Farm income is taxable whether the IRS treats your operation as a hobby or a business. The classification determines whether farm expenses can offset that income — and the gap can be substantial.
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Updated for 2026 Tax YearGot a 1099-K? Here's What It Actually Means for Hobby Income
A 1099-K from PayPal, Venmo, or a marketplace documents what you were paid — it doesn't decide how that income is taxed. Here's what the form means, where the income goes, and what actually triggers a tax problem.
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Updated for 2026 Tax YearHobby Tax Write-Offs: What Is and Isn't Deductible Under Current Rules
Under current TCJA rules, hobby expenses are not deductible. Understand exactly what changed, what the IRS allows for businesses vs hobbies, and how the classification affects your deductions.
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Updated for 2026 Tax YearThe Hobby Loss Rule Explained
Understand the IRS Hobby Loss Rule under IRC §183. Learn the 3-of-5 year profit test, the 9-factor audit test, and how deductions are affected under current TCJA rules.
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Updated for 2026 Tax YearHobby Income vs. Business Income: What Changes When the IRS Draws the Line
The IRS classifies the same activity as a hobby or a business — and the difference determines whether expenses are deductible and whether self-employment tax applies. Here's how that line is drawn and what it means for the tax bill.
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Updated for 2026 Tax YearHobby Income and Self-Employment Tax: How the SE Tax Threshold Works
Hobby income is not subject to self-employment tax — but business income above $400 net profit is. Understand exactly how the SE tax threshold works, what changes above and below it, and when it matters.
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Updated for 2026 Tax YearHow to Report Hobby Income on Your Tax Return
Hobby income goes on Schedule 1, Line 8z — not Schedule C. Here's where it belongs, how it flows to your AGI, what to do if a 1099 arrived, and why the line between these two forms matters.
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