The IRS decides whether your side hustle counts as a business or a hobby, and that decision can significantly change your tax bill. This video breaks down how the IRS tells the two apart and why the distinction affects what you owe: • Businesses can deduct expenses like home office, equipment, software, and mileage • Hobbies can only deduct the cost of goods sold under the One Big Beautiful Bill Act • Earning $30,000 and spending $25,000 means very different tax outcomes depending on your status • The IRS uses nine factors, including recordkeeping and profit history, to decide Learn more: intuit.me/4pnakCu Subscribe to our YouTube channel: intuit.me/3bOj0M2 Visit QuickBooks.com: intuit.me/QBO #QuickBooks