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Self employed
If it was self-employment, you are starting a business and trying to make a living, then it is reportable business income. If it was a one off and you happened to make some money, it is not self-employment and you are below the threshold.
Let's take a look at Earning side income: Is it a hobby or a business? which lists 9 factors after stating that a hobby is for recreation, not for profit:
- Whether the activity is carried out in a businesslike manner and the taxpayer maintains complete and accurate books and records.
- Whether the time and effort the taxpayer puts into the activity show they intend to make it profitable.
- Whether they depend on income from the activity for their livelihood.
- Whether any losses are due to circumstances beyond the taxpayer's control or are normal for the startup phase of their type of business.
- Whether they change methods of operation to improve profitability.
- Whether the taxpayer and their advisors have the knowledge needed to carry out the activity as a successful business.
- Whether the taxpayer was successful in making a profit in similar activities in the past.
- Whether the activity makes a profit in some years and how much profit it makes.
- Whether the taxpayers can expect to make a future profit from the appreciation of the assets used in the activity.
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March 19, 2025
4:18 PM