Receive a notice for not filing your tax return?

Taxpayers who are required to file a federal tax return but don’t may be in for a costly surprise. If the IRS receives a document like a Form W-2 indicating taxable income, it may file a Substitute for Return (SFR) on your behalf. Before doing so, the IRS typically will attempt to contact you and […]

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% […]

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. […]

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 […]

Will my summer job come with a tax obligation?

Teenagers with summer jobs may not think they’re being paid enough to have tax obligations. But anyone with self-employed income over $400 (earned, for example, by babysitting or mowing lawns) is required to file an income tax return and pay self-employment tax. If a teen has a job through an employer who withholds payroll taxes, […]

IRS audit rates

During his administration, former President Biden repeatedly promised higher IRS audit rates for wealthy, but not middle-income, taxpayers. Recently released IRS data suggests he kept his word. For tax returns filed in 2023 and audited in 2024, the audit rate was 0.8% for all taxpayers. But those making over $500,000 were audited at twice the […]