The IRS determines if rodeo winnings are hobby or business income based on factors like profit motive and record-keeping. For Social Security recipients under full retirement age, if rodeo activity is classified as a business, net profits count towards the earnings test. In 2026, a recipient with $50,000 in net rodeo business profit could face a $12,760 reduction in withheld benefits due to exceeding the $24,480 earnings limit. Competitors are advised to consult a tax preparer and report expected self-employment earnings to Social Security.