Turning a favorite pastime into income can be rewarding, but it raises an important tax question: Is the activity a hobby or a business? The answer matters because different tax rules apply to each. All income must be reported on your tax return, regardless of whether it’s from a hobby or a business. But related […]
Notices from the IRS are more common than you may realize. Each year, the IRS mails millions of letters to clarify information, confirm changes or request additional documentation. Receiving a notice may seem intimidating, but most notices can be addressed quickly with the right information and guidance. 5 common IRS notices explained Each IRS notice […]
Paying for college often requires a mix of savings, loans and financial aid. Although scholarships can significantly ease the burden, some portions of these awards may come with unexpected tax implications. Generally, scholarships received by degree candidates are tax-free to the extent they’re used for qualified tuition and related expenses. These include tuition, mandatory fees […]
April 15 Individuals must file (or extend) their 2025 personal returns and pay any tax due. Individuals, trusts and calendar-year corporations must pay first-quarter 2026 estimated taxes. Individuals must file a 2025 gift tax return or file for an extension and pay any gift tax due. Calendar-year trusts and estates must file 2025 returns or […]
Beginning in 2026, a significant change to retirement plan catch-up contributions takes effect. Part of the 2022 Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act, the change affects higher-income taxpayers age 50 and older who contribute to certain types of employer-sponsored retirement plans. Catch-up contribution basics For years, taxpayers age 50 or older […]
If you buy, sell or trade digital assets, such as cryptocurrency or certain nonfungible tokens (NFTs), new reporting requirements will likely affect how your transactions are reported to and reviewed by the IRS. While these rules don’t change how digital assets are taxed, they significantly impact information reporting, increasing transparency and scrutiny. Tax treatment For […]