Month: April 2026
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 expenses (and losses) are deductible only if the activity is a business.
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, and required books, supplies, and equipment.
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.
Are you a business owner or self-employed? Do you drive for business purposes? If so, you’ll be happy to know that the IRS’s standard mileage rate for business driving in 2026 is 72.5 cents per mile (up from 70 cents in 2025).
April 15 Employers: Deposit nonpayroll withheld income tax for March if the monthly deposit rule applies. Employers: Deposit Social Security, Medicare, and withheld income taxes for March if the monthly deposit rule applies. Calendar-year corporations: File a 2025 income tax …
