At what point (if any) does one make the distinction between WAH and having a hobby that happens to bring in a little bit of cash? I can't imagine paying any real bills by making hair bows.
From the article: "The IRS uses a number of factors to determine if an eBay hobby that generates sales revenue is actually a business.
These factors include: - Do you carry on the hobby in a business-like manner? - Do you spend considerable time working on the hobby? - Do you depend on income from your hobby for your livelihood?
If the answer to any or all of these question is yes, you're running a business, not carrying on a hobby, and you are responsible for paying taxes on your income."
That makes sense to me. Thanks!
If you pour you earnings into more stuff to feed your hobby, then I'd say it is still a hobby even if the IRS taxes your income.
However, the wahp's I know, basically carry on what they did before on a per contract and ad hoc basis. It can be project to project work or more like consulting work. Booking keeping is one, health insurance consulting, estate attorney, HR consultant - anything that has a client base- they just do it on a much lower level of intensity that they did before. Around here there are quite a few that have contracts with the federal government that are like, "no more than 24 or 40 hours per month or whatever- to provide X service/advice/policy.
When the IRS gets involved.
The truth may be out there but lies are in your head. Terry Pratchett
" it seems that "real" WAH jobs are few and far between. There is direct sales (but you have to, you know, LEAVE THE HOUSE to attend the parties), "
Just like SAH doesn't mean never leaving the house, WAH includes working from home. The business is based in the home but the work is frequently done elsewhere.
Basically when your profit exceeds your expenses/deductions.
Yeah I agree with this.
I know several people who "work
Well yeah, WAH means working at home with no necessary relation to childcare.
"I think what are few and far between are WAH jobs that actually create a reasonable profit while at the same time allowing for the person to also be staying home with their children without having to use othercare."
I agree. Even childcare which can be done with your (generic) own children at home (in fact, in CA, your own children are counted in the # of allowed children), it might be more advantageous to use other care while watching other people's children. That way, your children aren't sharing you with "strangers". Although, my sister did it when her kids were little. She bought all "new" (gently used) toys so her boys didn't have to share their toys.