2 results for tag: Form 1040


Is Your Sideline Activity a Business (Good) or a Hobby (Not Good)?

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Do you have a "Sideline Activity" that you think of as a Business? From this "Sideline Activity", are you claiming Tax Losses on your Form 1040? Will the IRS consider your Sideline a Business and allow your Loss Deductions? The IRS likes to claim that money-losing sideline activities are hobbies rather than businesses. The federal income tax rules for hobbies have been anti-taxpayer for years, and now an unfavorable change enacted in the Tax Cuts and Jobs Act (TCJA) made things even worse for 2018-2025. If you have ...

Self-Employed During the Pandemic? Uncle Sam Didn’t Forget About You

In the past, Uncle Sam made no special effort to help you as a self-employed individual. For example, you had no “safety net” that existed for employees who lost their jobs during the COVID-19 Pandemic. You were just supposed to "Hang On" until things got better. But this time, with COVID-19, it’s different... If you report your business income as Self-Employed on Schedule C of your Form 1040 or any of the following: Receive 1099 income Operate your business as a single-member LLC and did not elect corporate status Operate a retail establishment or professional practice as a sole proprietor, or Report your W-2 income on a ...