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Tax Tips: Is that activity just a hobby or a business?
Many people have hobbies - things they enjoy doing in their spare time - and some even make a little extra money from them. However, there’s a difference between a hobby and a business, especially how each is treated when it comes to filing taxes.
Businesses operate to make a profit while hobbies are for pleasure or recreation. Here are some common questions people should ask themselves when deciding if what they’re doing is a hobby or business. No single thing is the deciding factor.
Questions to help taxpayers decide if they have a hobby or business
• Is there an intent to make a profit?
• If the activity makes a profit, how much is it?
• Can they expect to make a future profit from the appreciation of the assets used in the activity?
• Do they depend on income from the activity for their livelihood?
• Are any losses due to circumstances beyond their control or are the losses normal for the startup phase of their type of business?
• Are operations adjusted to improve profitability?
• Is the activity carried out like a business with complete and accurate books and records kept?
• Do the taxpayers and their advisors have the knowledge needed to carry out the activity as a successful business?
Taxpayers should review all the factors to make the best decision. Regardless of the decision, if they’re paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. These payments are taxable income and must be reported on federal tax returns.
Additionally, if they received payment in the form of digital assets, they may also get a Form 1099-DA. Whether taxpayers have a hobby or run a business, good recordkeeping throughout the year will help when they file taxes.

4 more days to our Annual Chinatown Food Giveaway Event! Thank you so much for all sponsors and volunteers!

Final countdown for our Annual Chinatown Food Giveaway! We are going to giveaway 5000 food bags to the needy in one week. Thank you so much for all supporters, sponsors and volunteers!

年度的華埠食物派發活動進入最後倒數階段！我們將在一週後向有需要的人發放5,000份食品包。非常感謝所有支持者、贊助商和志工！

🐾 Did someone say "WALK ... to the ballot drop box?" 🐕

Freddie is here to remind you that all 37 official SF Ballot Drop Boxes are 100% dog-friendly! 🐶 Returning your ballot by drop box is one of the most secure, contact-free ways to ensure your voice is heard! All Citywide drop boxes are open 24/7 until 8pm on Election Day, June 2!

Make your pup proud - take them for a walk, snap a selfie at your local drop box, and tag us! 📸

📍 Find a drop box in your neighborhood at sfelections.gov/dropboxes

Tax Tips: Homeowners should review any tax benefits for homeownership
The year is nearly half over which makes it a good time to remind homeowners and future homeowners to review their eligibility for any tax deductions, programs and housing allowances. If eligible, these tax benefits could help with some of the common costs of being a homeowner.
Deductible house-related expenses
Taxpayers must itemize their deductions to deduct homeownership expenses. Most home buyers take out a mortgage to buy their home, and their mortgage lender may bundle other home-related costs.
The costs the homeowner can deduct are:
• State and local real estate taxes, subject to a $40,000 limit or $20,000 if married filing separately
• Home mortgage interest, within the allowed limits
Homeowners can't deduct any of the following items:
• Insurance including fire and comprehensive coverage and title insurance
• The amount applied to reduce the principal of the mortgage
• Wages paid to domestic help
• Depreciation
• The cost of utilities, such as gas, electricity or water
• Most settlement or closing costs
• Forfeited deposits, down payments or earnest money
• Internet or Wi-Fi system or service
• Homeowners’ association fees, condominium association fees or common charges
• Home repairs
Mortgage Interest Credit
The Mortgage Interest Credit helps people with lower income afford homeownership. Those who qualify can claim the credit each year for part of the home mortgage interest paid. A homeowner may be eligible for the credit if they were issued a qualified Mortgage Credit Certificate from their state or local government.
Ministers and military housing allowance
Ministers and members of the uniformed services who receive a nontaxable housing allowance can still deduct their real estate taxes and home mortgage interest. They don't have to reduce their deductions based on the allowance.

今年五月，Clipper START 幫您輕鬆省錢。享受灣區捷運 BART、公車、列車和渡輪的半價優惠！在 clipperstartcard.com 查看您是否符合資格，並立即申請🌼

Tax Tips: A more detailed look at what the right to be informed means
All taxpayers have the right to know what they need to do to comply with tax laws. This is one part of the Right to be Informed, one of the 10 fundamental rights that make up the IRS Taxpayer Bill of Rights.
The right to be informed means taxpayers have the right to:
• Know and understand what they need to do to comply with the tax laws
• Have clear explanations of the laws and IRS procedures in all forms, instructions, publications, notices and correspondence
• Be informed of IRS decisions about their tax accounts
• Receive clear explanations of the outcomes of IRS decisions
To make sure taxpayers are informed, the IRS will:
• Include within certain notices any amount of tax, interest and certain penalties the taxpayer owes
• Explain why the taxpayer owes any balance due
• Explain the specific reasons why a refund claim was denied
• Post information on IRS.gov to help taxpayers understand their IRS notice or letter
• Send a letter when the agency makes an assessment. That letter must include:
o Information on how the taxpayer can appeal the decision
o An explanation of the entire process from audit through collection
o Details on how the Taxpayer Advocate Service can help
• Send an annual statement to taxpayers who enter into a payment plan, also known as an installment agreement. The statement will include how much the taxpayer:
o Owes at the beginning of the year
o Paid during the year
o Still owes at the end of the year
• Make forms and publications available on IRS.gov.
• Use social media to provide helpful tax information to a wide audience of taxpayers.