Q&A of the Week September 26, 2024

Question

I am making money with a side gig, can I deduct any of its expenses?

Answer

Yes! If you can prove it’s a business not just a hobby!

Some of your expenses may be taxable if you’re operating a legit business!

Check out the IRS website for guidelines on how to distinguish a hobby from a business:

https://www.irs.gov/newsroom/hobby-or-business-what-people-need-to-know-if-they-have-a-side-hustle

Example: If you’re selling some paintings on the side, you may be able to write off art supplies, studio space, or even marketing costs!

Ask a tax professional for more information!