Turning a passion project or freelance gig into extra cash is a classic move, but it comes with a major compliance hurdle. Whether you are selling digital products online or picking up local client work, the IRS demands that you report every single dollar of that income. However, whether you can deduct your expenses depends entirely on whether the tax collector views your side hustle as a legitimate business or just a hobby.
Summer Activities That Could Impact Your Next Tax Return
While the spring tax deadline is behind us, what you do during the sunnier months can directly influence what you owe—or get back—when it is time to file again. Taking a few proactive steps now can save you from an unexpected tax bill later.
How Renting Out Your Vacation Home Affects Your Taxes
When you’re not using your vacation home, renting it out can generate extra income. But it can also affect your taxes, depending on how often you rent and use the property personally.
IRS Eases Partnership Sale Reporting Rules
Final regulations released by the IRS stipulate that partnerships no longer need to provide detailed gain and loss information to selling partners by January 31. This deadline had become a contentious issue.
Revisit Your Emergency Fund Goals
An emergency fund is key to long-term financial security. Over time, changes in expenses, income, family needs, and financial priorities can affect how much emergency savings you need. Regularly reviewing your reserves can help ensure they’re sufficient to support your lifestyle and broader financial strategy.
Can You Deduct Elder Care Costs?
If your parent or another elderly family member is moving into a nursing home, there may be tax implications. For example, long-term care expenses may qualify as an itemized deduction if they, along with other medical expenses, exceed 7.5% of adjusted gross income. (Only the amount over 7.5% is deductible.)
Simple Retirement Solutions for Small Business Owners
Offering employees retirement options can be an effective way for small business owners to attract and retain talent. If you’re concerned about cost and administrative complexity, you’re not alone. Fortunately, several options are available, including a Simplified Employee Pension (SEP) plan.
Backup Withholding: What Businesses Should Know
In most cases, you aren’t required to withhold taxes from payments to independent contractors. However, there are situations in which the “backup withholding” rules apply. Backup withholding is most commonly required when a contractor fails to provide a correct Social Security number or Employer Identification Number, or doesn’t properly complete Form W-9, “Request for Taxpayer Identification Number and Certification.”
When Free Money Isn’t Free: The Truth About Canceled Debt
Getting a debt wiped clean feels like an absolute win, but the IRS often sees it differently. Generally, when a lender forgives, cancels, or settles a debt for less than what you actually owe, the government treats that wiped-out balance as taxable income.
July 2026 Tax Due Dates
Upcoming July Tax Due Dates July 15 Employers: Deposit Social Security, Medicare, and withheld income taxes for June if the monthly deposit rule applies. Employers: Deposit nonpayroll withheld income tax for June if the monthly deposit rule applies. July 31 …