Is Your Blog a Hobby or a Business? 10 Questions to Decide
Life Happens, but Blogging Still Matters
If you have been a friend of the Simply Sunni blog for a while now, you know I almost never miss posting on Mondays and Fridays. That’s my rhythm, my routine, and part of how I treat Simply Sunni like the true blogging business that it is today.
But last week? Life had other plans.
On Thursday, I was diagnosed with shingles.
By Friday, I got hit with the newest wave of COVID.
Honestly, today is the first day I’ve even looked at my computer. And as I sit here, I can’t help but laugh a little, because I always preach about planning content, and here I am learning (again) that I need to take my own advice.
Note to self: a little planning goes a long way!
So let’s talk about something that trips up a lot of beginner and seasoned bloggers: Is your blog a hobby or a business? The answer makes a big difference in how you treat your time, your income, and yes, how the IRS looks at you. That is why I felt it was a topic I would be happy to cover here on Simply Sunni.
Hobby or Business? Why This Question Matters
If you’ve been blogging for a while, you’ve probably asked yourself whether your blog is “just for fun” or if it has the potential to be something more. I’ve been there, sitting at the kitchen table with my laptop, wondering if I was just writing blog posts into the void or building something that mattered. The truth is, there’s no shame in either choice. It’s about knowing your goals and being honest about what you want your blog to do for you.
Here’s the deal: hobbies are fun, but businesses create income, stability, and long-term impact. The IRS takes this distinction seriously because it changes how your money is taxed.
The IRS says:
“No single factor is decisive. The IRS considers all facts and circumstances when determining whether an activity is carried on for profit.”
That’s why it’sso important to know whether whatyou’re earning is hobby income or business income. Those words mean two very different things when tax season rolls around.
Now, another thing you may or may not know about me is that I do not like the “mathmaticals or the numbericals.” I am a creative and am terrible at math. In fact, I think I have an aversion to it. Which is why I have an accountant; Jackie keeps me safe!
Needless to say, I hate to even bring up the tax subject, but listen, we have to! So bear with me for a moment and I will try to make this as pinless as possible.
How the IRS Decides Your Profit Motive
When I first heard the phrase “profit motive,” I remember thinking, “That sounds like something out of a TV courtroom drama.” But really, it’s just the IRS’s way of asking: Are you blogging to make money, or are you blogging because it’s fun? Both are fine, but the way you answer changes how your blog is treated when it comes to taxes.
The IRS has a simple way of looking at this.
Are you doing this to make money? If the answer is yes (and you have the proof to back it up), you’re running a business.
One of the best-known IRS rules is the 3-out-of-5 test:
“An activity is presumed for profit if it produced a profit in at least three of the last five tax years.”
That doesn’t mean you’re off the hook if you haven’t hit that mark yet. It just means you’ll need to prove your profit motive in other ways. Some of those ways might include showing businesslike recordkeeping, marketing strategies, and plans for future profitability.
10 Questions to Decide if Your Blog is a Hobby or a Business
Sometimes the easiest way to figure out where your blog stands is to ask yourself some honest, practical questions. I love this method because it helps you step back and really look at the bigger picture. Thesefollowing questions can guide you in figuring out if your blog is a hobby, or if it’s already operating as a successful business without you even realizing it.
Here my top 10 questions that can help you make the decision:
- Do you intend to make a profit?
- Are you blogging just for fun, or do you want to see income grow? The IRS calls this your profit motive.
- How much time and effort are you putting in?
- Writing one post every few months is a “hobby.” Consistency, scheduling, and showing up day after day? That’s businesslike.
- Do you keep records like a business?
- Separate bank accounts, bookkeeping software, receipts, and budgets are all signs you’re serious.
- Have you made money in the past years?
- Even small profits count. The IRS looks at your track record to see if you’re trending toward profitability.
- Do you rely on this income?
- If your blog income pays bills, it leans business. If it’s “extra cash for lattes,” it may be seen as a hobby.
- Are you reinvesting in your blog?
- Buying tools, courses, or software to grow shows you’re in it for the long haul.
- Do you operate like a business owner?
- Filing as a sole proprietorship, LLC, or another business entity signals you’re operating professionally.
- Are you expanding into new things?
- Selling digital products, offering services, or affiliate marketing? That’s business activity, not just play.
- Are you learning from experts or just winging it?
- Seeking financial advice, using tax software, or hiring pros demonstrates a business mindset.
- Would you still do it if it didn’t make money?
- This is where personal motives come in. Yes, joy matters, but at the end of the day, the IRS cares about the profit motive.
Real Signs You’re Running a Blogging Business
One of the things I love most about blogging is how it starts small and then slowly shifts into something bigger without you even realizing it. Maybe you began writing posts for fun, but now you’re working with brands, setting up affiliate links, or creating your first digital product. That shift is a huge sign you’re running a business, even if you didn’t set out with that intention.
If you’re treating your blog like a business, you might recognize yourself here:
- Affiliate links and partnerships are in place.
- You’ve started creating digital or physical products.
- You show up on social media like a business owner, not just a casual poster.
- You’ve separated personal and business bank accounts.
Pro tip from the tax experts:
“Filing Form 5213 can postpone the IRS decision on whether your activity is a business, giving you more time to prove profitability.”
Deductions and Expenses That Make a Big Difference
I remember the first year I learned I could deduct my blogging expenses, I was amazed! Suddenly, all those late nights writing at the kitchen table felt even more worthwhile because I was operating like a true business owner. This is where the difference between hobby and business really pays off—literally.
According to the IRS:
“Business expenses are deductible if they are ordinary and necessary to carrying on a trade or business.”
Building Toward Long-Term Profit (and Peace of Mind)
I know, I know. When you’re just starting out, it can feel like you’re working endlessly for pennies, and that’s okay. Every big business had a humble beginning, and blogging is no different. Remember my Chinchilla Blog client? The key is to stay consistent, keep learning, and remember that small wins eventually lead to bigger success.
When I started, I was writing at my kitchen table or poolside with just a notebook and big dreams. Today, Simply Sunni is a full-blown business with clients, courses, and books – all because I treated it seriously.
And here’s the good news from a company that knows:
“Blogging businesses that post consistently see 67% more leads per month than those who don’t.”
–Â Ahrefs
FAQs: Hobby vs. Business for Bloggers
Do I need to make money right away for my blog to be considered a business?
Not at all, friend. Many bloggers take a couple of years before they see consistent income from their blog posts. The IRS looks at your profit motive, whether you’re running your blog in a businesslike manner, keeping good records, and actively trying to earn business income. Even if you don’t hit big profits yet, you can still operate as a legitimate business.
What happens if my blog only makes hobby income?
If you’re earning hobby income, you still need to report it on your tax return. The big difference is that hobbyists can’t deduct expenses the way businesses can. That means things like software, hosting, or even travel expenses for conferences can’t be written off. If you want those benefits, shifting into a successful business mindset is key.
How do I prove my blog is a successful business to the IRS?
The easiest way is to treat your blog just like you would any other small business. Open a separate bank account, keep track of income and expenses, and operate with the intention of making a profit. Filing taxes on Schedule C as a sole proprietorship, or setting up a legal entity like an LLC, are clear signs you’re building a real business. The IRS loves to see consistency in your business income over the years.
Can I run my blog as a side hustle and still count it as a business?
Absolutely! Many of today’s most successful bloggers started their sites as side gigs while working a full-time job. The key isn’t whether you’re full-time or part-time; the key is whether you’re taking it seriously. Even if you’re writing blog posts late at night after your 9-to-5, you can still operate with the profit motive defining a legitimate business.
What kind of blog expenses can I deduct as a business owner?
If your blog is treated as a business, you can deduct “ordinary and necessary” business expenses. That might include your web hosting, email marketing software, social media tools, office supplies, or even a portion of your home office. These business deductions lower your taxable income and make running a blogging business a little lighter on your wallet at tax time.
How many years can I run my blog without a profit before the IRS calls it a hobby?
The IRS has what’s called the “3 out of 5 years” rule: if you turn a profit in at least three of the last five consecutive years, the IRS presumes you’re a business. But don’t panic if you’re not there yet. You can still show that you’re operating in a businesslike manner and intend to be a profitable business in the future.
What’s the main difference between hobby income and business income?
The main difference comes down to intent and deductions. Hobby income is taxable, but hobby expenses can’t offset that income. Business income, on the other hand, lets you deduct expenses, reinvest in your growth, and operate like a successful business. It’s not just about the money you make today—it’s about proving that your blog has a future profit motive.
How can I tell if my blog is ready to move from hobby to business?
If you’re consistently publishing blog posts, reinvesting in tools or education, and starting to bring in affiliate links or product sales, chances are you’ve already crossed the line. The fact that you’re asking these questions shows you’re taking it seriously. A good starting point is to treat your blog as a business now, because acting like a successful business owner is the fastest way to become one.
Your Starting Point Today for a Hobby or a Business
At the end of the day, you get to decide how you treat your blog. Do you want it to stay a lighthearted hobby, or are you ready to make it a business? Neither path is wrong, but only one sets you up for long-term income and opportunities.
The good news is you can decide, starting today, to treat it like a business. That means setting up systems, planning content (yes, like I should have done before shingles + COVID!), and working with a profit motive in mind.
So here’s my encouragement: treat your blog like it matters because it does. Your words, your business, and your future profit all matter.
AÂ Friendly Note from Sunni:
I’m here to share what I’ve learned from blogging and building a successful business, but remember, I’m not a tax advisor. The information in this post is meant to guide and encourage you, but your situation may be unique. For specific questions about hobby income, business income, or tax deductions, it’s always a good idea to chat with a licensed tax professional. They’ll help you make the best decisions for your blog and your future. 🌞
