Thousands Back Tax Prep Service

Don't mind me. I'm just enjoying myself in Boston on a New Years Day.❤️❤️

Nothing like a good bagel to start your day. Who agrees with me?🙂

The birthday girl turned the "double nickels" today. Feeling blessed, happy, and healthy.🤩

Sunday vibes.

A hobby is an activity that individuals engage in because they enjoy it.(sewing, photography, etc). There's no intention of making a profit. If a taxpayer receives income from an activity that operates without the intention of making a profit, they must report the income they receive on Schedule 1, Form 1040, line 8.

Factors that determine whether an activity is a business or hobby:

•The activity functions in a
business like manner, and the
taxpayer maintains complete and
accurate books and records.

•The time and effort the taxpayer
invests in the activity shows they
intend to make it profitable.

•Taxpayer depends on income from
the activity for their livelihood.

•Whether any losses are due to
circumstances beyond the taxpayer's
control, or are normal for the startup
phase of their type of business.

•Whether they change methods of
of operation to improve profitability.

•Whether the taxpayer and their
advisors have the knowledge needed
to carry out the activity as a
successful business.

•Whether the taxpayer was successful
in making a profit in similar activites
past years.



•Whether the activity made a profit in
past years, and how much profit was
made.

•Whether the taxpayer expects to
make a future profit from the
appreciation of the assets used in the
activity.

What if I can't pay my taxes?

There are two major options that taxpayers can utilize to pay taxes that they owe:

•Short-term payment plan- The
payment is 120 days or less and the
total amount owed is less than
$100,000 in combined tax, penalties,
and interest.

•Long-term payment plan- The payment
period is longer than 120 days, paid in
monthly payments, and the amount
owed is less than $50,000 in combined
tax, penalties and interest.

Tax Tips: Reasons why the IRS mails letters/notices to taxpayers:

• They have a balance due.
• They are due a larger or smaller refund
• The agency has a question about their
tax return.
• They need to verify identity.
• The agency needs additional
information.
• The agency changed their tax return.

Here are the do's and don'ts for taxpayers
who receive one:

• Don't ignore it
• Don't panic
• Read the notice
• Respond timely
• Pay the amount that's due
• Keep a copy of the notice or letter
• Remember there is usually no
need to call the IRS.
• Avoid scams.

Taxpayers who are unsure if they owe money to the IRS can view their tax information on IRS.gov.

Rules that I live by.

Happy (belated) International Women's Day!