January 05th, 2016

TAX TIP OF THE DAY...  HOBBY INCOME status can save you tax.

If you have income from a side venture with NO SIGNIFICANT EXPENSES, classifying that endeavor as "hobby income" may save you hundreds of dollars in tax.  Hobby income is not subject to the 15% self-employment tax that you otherwise pay on part-time business income.

You may have a hobby if: 1) you enjoy the work 2) you have another source of primary income 3) the work is sporadic or 4) the work is very part-time.  Hobby income examples include fish tank cleaning, church organist, babysitting and baked good sales.


SHARE WITH A FRIEND. 
If you need any help... www.baboiancpa.com