You may love what you do but at some point, you gotta eat. That’s more or less the word from Internal Revenue Service (IRS) when it comes to being an independent contractor. When you work for someone else – and you get a form W-2 – reporting your income is easy. You enter the information…
As our athletes medal in Sochi, the chatter has again started about whether those medals – and the associated bonuses – should be exempt from federal income tax. Is it appropriate? Or necessary? I say no to both. And here’s why.
Taxpayer asks: I read your post about Mary Kay and I am still confused about hobbies. I own a bunch of blogs. I make money on some of them and I lose money on some of them. Does this make me a hobby? Taxgirl says: You’re right to be a little confused because this is…
Taxpayer asks: Hi Tax Girl, Thanks for taking questions. It’s a really nice thing to do. I have a trio that performs regularly and this year the venue sent me a W-9. I know it is just for informational purposes in preperaion for a 1099, but should they be sendind one to just me or…
Taxpayer asks: I run a hiking group online, and lead regular events with about $25 expense for each and an annual subscription to meetup and admin supplies.Can this be a hobby tax deduction? I don’t make a profit, but sometimes get a contribution. Taxgirl says: It sure sounds like a hobby at this point. Any…
Taxpayer asks: I saw on twitter that you ran a race this year so maybe you can help me. I run a number of races throughout the year and I occasionally win some money. My friend told me that I have to include that money on my taxes. Can I deduct the cost of the…
At my BlogHer session on blogging and tax, I raised the issue of hobby loss rules. This is an incredibly important matter not only for bloggers but others who work in small or home businesses. Just ask Brenda Konchar. Brenda Konchar, a Mary Kay Cosmetics representative, reported her Mary Kay activity as business income; the…
I’m in Chicago today for the BlogHer Conference, where I will be speaking about blogging and tax. One topic that I plan to focus on is the issue of hobby versus business, which I addressed earlier in an “Ask the Taxgirl” segment and in my Problogger guest post. Briefly, the IRS allows you more favorable…
