Hobby income is taxable

Many Americans seek to earn money by way of a side hustle, which sometimes starts as a hobby. The IRS is reminding taxpayers that this income is taxable. Depending on whether the IRS considers the activity to be a business or a hobby, the tax treatment is very different. On their tax returns, businesses can […]

House Bill doesn’t completely remove tax on overtime

President Trump has repeatedly promised to abolish income tax on overtime pay. However, the bill passed by the U.S. House wouldn’t reduce tax for all workers putting in extra hours. Only hourly and some salaried employees required to be paid time-and-a-half after working 40 hours in a week would be affected. And only the 50% […]

Loan applications: How to strengthen your hand in today’s credit markets

In recent years, interest rates have increased and credit has tightened. Under these conditions, which are expected to persist in the coming months, securing a commercial loan can be challenging for businesses of all sizes. Whether you want to expand, stabilize your cash flow or simply build a financial cushion, being loan-ready is more critical […]

10 Federal Tax Tips

To help ensure small businesses take advantage of all potential tax breaks, the Taxpayer Advocate Service (TAS) summarizes the types of tax you may owe and provides a list of 10 federal tax tips (https://bit.ly/43WgUFP). Among the tips are to separate your business and personal finances, which means establishing business-only bank accounts and credit cards. […]

IRS penalties for noncompliance

Earned Income Tax Credit

As of December 2024, nearly 23 million families had received about $64 billion from the Earned Income Tax Credit (EITC) since its inception in 1975. The credit is intended to help low- and moderate-income working families. Eligibility depends on adjusted gross income, filing status and the number of qualifying children. Under the proposed One, Big, […]

Miss the filing deadline?

The IRS is highlighting several resources available to help taxpayers who missed the April 15, 2025, federal income tax return filing deadline and owe taxes, interest and penalties. The tax agency recommends that taxpayers who owe taxes file their returns and pay any taxes due as soon as they can. Interest and penalties will continue […]

Consider a 529 Plan for education costs

While students may be in summer mode, many parents are already thinking ahead to fall education costs. One smart, tax-advantaged tool to consider is a Section 529 savings plan. 529 plans aren’t new, but they’ve grown more versatile over the years. Originally limited to college expenses, they now also cover up to $10,000 per year […]

Miss the Deadline?

The second quarter estimated tax payment deadline arrived. If you make quarterly payments, you have until June 16 to pay and avoid possible underpayment penalties. If you don’t currently make estimated payments, should you? In general, individuals should make payments if they expect to owe $1,000 or more ($500 for corporations) when they file their […]

The tax rules for legal awards and settlements: What recipients should know

If you’ve recently received a settlement or award from a lawsuit, or you’re expecting one, you may be wondering how the IRS views this money. Will you need to pay taxes on it? The short answer: It depends on the type of damages you received. Understanding the basic rules can help you avoid surprises. Taxable […]