Browse Tax Articles
H&R Block Tax Professionals relentlessly focus on making sure you profit from every deduction and credit available.
Finding answers to your tax questions is now less taxing.
You can deduct hobby expenses up to the amount of your hobby income. Expenses that are more than the income you made from your hobby are nondeductible personal losses.
If you operate a business, your business losses can offset other income on your return. To be considered a business, an activity must have a profit motive.
The IRS presumes you carry on an activity for profit if one of these applies:
Hobby income vs. business income
The IRS considers many factors when deciding if your activity is a business or a hobby. No one item is the deciding factor, and the IRS might consider factors not listed. Deciding factors can include:
Deduct hobby expenses as itemized deductions on Schedule A. They're part of your miscellaneous itemized deductions. You can only deduct your total miscellaneous itemized deductions if they’re more than 2% of your adjusted gross income (AGI).