ResidentialBusiness

The move is a value play for the hamburger chain whose shares have slid 70% in the past 5 years View the full article

There is good reason to be dubious about the notion that automation will supplant all demand for human labour View the full article

Traders expect corn and soyabeans to soar as demand for alternative fuel sources risesView the full article

US Senate widely expected to confirm the 56-year-old financier to replace Jay Powell this weekView the full article

Power flows less from size or wealth than from the ability to convert imbalance into leverageView the full article

In-house MeshClaw tool enables employees to delegate jobs to AI agents and climb company’s AI leaderboardView the full article

‘Tariff man’ wants to recover from a wounding Supreme Court ruling. But Congress is restive and voters are unhappyView the full article

UK prime minister prepares for crucial cabinet meeting as mood turns ‘pretty ugly’ in Labour PartyView the full article

The coffee might be poured by a human hand, but behind the counter, something far less traditional is calling the shots at an experimental café in Stockholm. San Francisco-based startup Andon Labs has put an artificial intelligence agent nicknamed “Mona” in charge at the eponymous Andon Café in the Swedish capital. While human baristas still brew the coffee and serve the orders, the AI agent—powered by Google’s Gemini—oversees almost every other aspect of the business, from hiring staff to managing inventory. It is not clear how long the experiment will last, but the AI agent appears to be struggling to turn a profit in Stockholm’s competitive coffee trade. The café has made more than $5,700 in sales since it opened in mid-April, but less than $5,000 remains from its original budget of $21,000-plus. Much of the cash was spent on onetime setup costs, and the hope is that it eventually levels out and makes money. Many café patrons have found it amusing to visit a business that’s run by AI. Customers can pick up a telephone inside the café and ask the agent questions. “It’s nice to see what happens if you push the boundary,” customer Kajsa Norin said. “The drink was good.” Experts worry about AI’s role going forward Experts say ethical concerns abound, ranging from technology’s role in humankind’s future to conducting job interviews and judging employee performance. Emrah Karakaya, an associate professor of industrial economics at Stockholm’s KTH Royal Institute of Technology, likened the experiment to “opening Pandora’s box,” and said putting AI in charge can cause many problems. What might happen, he said, if a customer gets food poisoning? Who’s to blame? “If you don’t have the required organizational infrastructure around it, and if you overlook these mistakes, it can cause harm to people, to society, to the environment, to business,” Karakaya said. “The question is, do we care about this negative impact?” Founded in 2023, Andon Labs is an AI safety and research startup that says it focuses on “stress-testing” AI agents in the real world by giving them “real tools and real money.” It has worked with ChatGPT maker OpenAI, Claude’s Anthropic, Google DeepMind and Elon Musk’s xAI, and the startup says it is preparing for a future where “organizations are run autonomously by AI.” The Swedish café is billed as a “controlled experiment” to explore how AI might be deployed going forward. “AI will be a big part of society in the future, and therefore we want to make this experiment [to] see what ethical questions arise when we have AI that employs other people and runs a business,” said Hanna Petersson, a member of the technical staff at Andon Labs. The lab previously held pilots that put Anthropic’s Claude AI in charge of a vending machine business and a San Francisco gift store. The vending machine simulation revealed some worrying traits: The AI agent told customers it would issue refunds but never did, and it also intentionally lied to suppliers about competitor pricing to gain leverage. AI agent struggles with inventory orders Mona got to work after it was prompted with some basic instructions, Petersson said. The team told it to try to run the café profitably, be friendly and easygoing, and figure out operational details by itself but ask for new tools if needed. From there it set up contracts for electricity and internet, and secured permits for food handling and outdoor seating. The agent then advertised for staff on LinkedIn and Indeed, and set up commercial accounts with wholesalers for daily bread and bakery orders. It communicates with the baristas via Slack, often messaging them outside of working hours, which is a workplace no-no in Sweden. Other problems have arisen, particularly related to inventory. The AI agent has placed orders for 6,000 napkins, four first-aid kits, and 3,000 rubber gloves for the tiny café—plus canned tomatoes that aren’t used in any dish the café serves. And then there’s the bread. Sometimes the agent orders far too much, while other days it misses bakeries’ daily deadlines, forcing the baristas to strike sandwiches from the menu. Petersson said the ordering issues are likely due to the AI assistant’s “limited context window,” noting, “When old memory of ordering stuff is out of the context window, she completely forgets what she has ordered in the past.” Barista Kajetan Grzelczak said he isn’t worried about being replaced by AI just yet. “All the workers are pretty much safe,” he said. “The ones who should be worried about their employment are the middle bosses, the people in management.” —By James Brooks, Associated Press View the full article

It has become clear that women—and working mothers, in particular—are up against all kinds of challenges that threaten their foothold in the labor force. But one trend that may be less evident is that men are also dropping out of the workforce, albeit for different reasons. The jobs report last week offered a more sunny outlook than expected, with an uptick of 115,000 jobs in April; the unemployment rate also held steady at 4.3%. The data also, however, points to a more nuanced story about a broader shift in the labor force. Last month, the number of men who were working or actively looking for a job fell to the lowest figure seen in decades, with the exception of an anomalous dip during the early months of the pandemic. That means a third of men have dropped out of the workforce as of April. There are a few reasons for this decline, which has slowly emerged in the last few years: Much of the recent job growth has happened in industries that are dominated by women, like healthcare and education, while sectors like manufacturing that were overwhelmingly staffed by men have lost jobs. A recent report from Indeed’s Hiring Lab found that between February 2025 and February 2026, the share of jobs held by women climbed by nearly 300,000; meanwhile, the share of jobs held by men decreased by 142,000. More broadly, however, the gender gap in employment has been narrowing for decades, and women had actually already outpaced men on non-farm payrolls back in 2020. While job losses during the pandemic—and systemic issues that have kept mothers out of the workforce—set them back, women eventually overtook men in the workforce earlier this year. The losses among working men are not solely driven by people retiring or aging out of the workforce. Younger men, too, are stepping away from work for a variety of reasons, according to an analysis by The Washington Post. Some of them are going back to school or taking on caregiving duties, but a significant share are dropping out of the workforce due to illness or disabilities. The Post analysis found that men who had exited the workforce were more likely to live at home or have never been married, and there has also been an increase in the number of men who lack college degrees and no longer work. (On the whole, women are now more likely to hold college degrees relative to men.) Despite the job growth in certain sectors, this shift in men’s labor force participation is not fueled by an influx of women into the workforce. In fact, even as women see those gains in employment, their standing in the workforce is still precarious at best: About 212,000 women left the workforce in the first half of 2025, with a marked impact on working mothers. It’s telling that part of the reason men have not benefited as much from job growth in certain sectors is because there remains a stigma associated with working in industries that typically attract more women—not to mention lower wages. View the full article

Sales of previously occupied U.S. homes were essentially flat in April, another lackluster showing for the housing market during what’s traditionally its busiest time of the year. Existing home sales edged up 0.2% last month from March to a seasonally adjusted annual rate of 4.02 million units, the National Association of Realtors said Monday. Sales were unchanged compared to April last year. The latest sales figure fell short of the roughly 4.12 million pace economists were expecting, according to FactSet. Sales have been hovering close to a 4-million annual pace now going back to 2023, far short of the historic norm that is closer to 5.2-million. And home prices continued to rise nationally last month, albeit at a slower rate. The U.S. median sales price increased 0.9% in April from a year earlier to $417,700, an all-time high for any April on data going back to 1999, NAR said. Home prices have risen on an annual basis for 34 months in a row. The U.S. housing market has been in a slump since 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes were essentially flat last year, stuck at a 30-year low. They have remained sluggish so far this year, declining from a year earlier through the first three months of this year. “This spring homebuying season, so far all the way through April, we can say we are not predicting any increase compared to one year ago,” said Lawrence Yun, NAR’s chief economist. While average incomes are now rising at a faster pace than U.S. home prices, affordability remains a major hurdle for aspiring homeowners. Years of soaring home prices, especially in the early part of this decade when rock-bottom mortgage rates fueled a buying frenzy, have left many would-be homebuyers frozen out of the market. And a chronic shortage of homes for sale nationally, due partly to years of below-average new home construction, has helped prop up home prices even in a multiyear sales slump. Homes purchased last month likely went under contract in February and March, when the average rate on a 30-year mortgage ranged from 5.98% — its lowest level in three and a half years — to 6.38%, according to mortgage buyer Freddie Mac. The average rate was at 6.37% last week. While the average rate has remained below where it was a year ago, it has been fluctuating since the war with Iran began, as surging energy prices fuel anxiety about higher inflation. Those who can afford to buy are benefiting from more properties on the market, although home inventory levels remain well below historical norms. There were 1.47 million unsold homes at the end of April, up 5.8% from March and up 1.4% from April last year, NAR said. That’s the most homes on the market for the month of April going back to 2019, when the month-end inventory stood at 1.83 million homes. That’s still short of the roughly 2 million homes for sale that was typical before the COVID-19 pandemic. April’s month-end inventory translates to a 4.4-month supply at the current sales pace. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers. “We really need to see 30% growth in inventory, but we’re not really seeing that,” Yun said. One factor helping boost the supply of homes for sale is many properties are sitting on the market longer. Properties typically remained on the market for 32 days last month before selling, down from 41 days in March, but up from 29 days in April last year, NAR said. As homes take longer to sell, asking prices have started falling in many metro areas, especially in the South and Midwest. The national median home listing price was down in April from a year earlier, according to Realtor.com. —Alex Veiga, AP business writer View the full article

As a sole proprietor, you need to understand your tax obligations. When your net earnings exceed $400, you’ll file Schedule C with your Form 1040 to report your business income and expenses. You may likewise have to complete Schedule SE for self-employment tax. Additional forms might be necessary based on your situation. Knowing which forms to file is essential for accurate reporting and compliance. But what specific deductions can you claim to maximize your benefits? Key Takeaways Sole proprietors report business income and expenses on Schedule C (Form 1040). If net earnings exceed $400, Schedule SE is required for self-employment tax. Form 1099-NEC is used to report nonemployee compensation over $600. Additional forms like Schedules 1 and 2 may be necessary based on the financial situation. Estimated tax payments are filed quarterly using Form 1040-ES if taxes owed exceed $1,000. Understanding Sole Proprietorships When you think about starting a business, a sole proprietorship might be the simplest option available. This structure allows you to own and operate your business without a legal distinction between yourself and the entity. As a sole proprietor, you report your business income and expenses on the Schedule C form, which you file alongside your personal income tax return on Form 1040. Your sole proprietorship tax form helps you track your schedule C income directly, making the process straightforward. The profits and losses are considered your personal income, meaning they’re taxed at your individual tax rate. If your net earnings exceed $400, you’ll likewise need to pay self-employment taxes, calculated using Schedule SE. Since sole proprietors are “disregarded entities,” it’s crucial to understand how these forms work so as to guarantee compliance and accurately report your business activities. Required Tax Forms for Sole Proprietors As a sole proprietor, you’ll need to complete several key tax forms to accurately report your business income and expenses. Schedule C (Form 1040) is crucial for detailing your profits or losses, whereas Schedule SE calculates your self-employment tax if your net earnings exceed $400. Furthermore, depending on your financial situation, you may need to include other forms like Schedules 1 and 2, along with Form 1099-NEC for any nonemployee compensation over $600. Essential Forms Overview Comprehending the fundamental forms required for sole proprietors is essential for managing your business finances effectively. You’ll primarily file Schedule C (Form 1040) to report your business income or loss, which integrates into your personal tax return. If your net earnings exceed $400, you’ll furthermore need Schedule SE to calculate self-employment tax. In addition, Form 1040 is necessary for reporting total income, and you may need Schedules 1 and 2 for specific deductions. If you receive $600 or more in nonemployee compensation, use Form 1099-NEC, whereas payments from cards should be reported on Form 1099-K. For quarterly estimated tax payments, rely on Form 1040-ES. Form Name Purpose Schedule C Report business income or loss Schedule SE Calculate self-employment tax Form 1099-NEC Report nonemployee compensation Form 1040-ES Calculate estimated tax payments Self-Employment Tax Requirements For sole proprietors, comprehension of self-employment tax requirements is crucial since this tax applies to your net earnings from self-employment. You’ll need to file Schedule C (Form 1040) to report your business income or loss, which is included in your personal tax return. If your net earnings are $400 or more, you must calculate your self-employment tax using Schedule SE, covering Social Security and Medicare contributions. Don’t forget about Form 1099-NEC; if you receive $600 or more in nonemployee compensation, it must be reported as income. Furthermore, if you expect to owe $1,000 or more in taxes for the year, you’ll need to make quarterly estimated tax payments using Form 1040-ES. You can likewise deduct half of your self-employment tax. Filing Schedule C and Other Relevant Forms When you’re a sole proprietor, filing Schedule C (Form 1040) is vital for reporting your business income and determining your tax responsibilities. You’ll additionally need to take into account other forms like Schedule SE if your income exceeds $400, along with any additional schedules that may apply based on your unique financial situation. Comprehending these requirements and deadlines is fundamental to guarantee that you accurately report your earnings and comply with tax regulations. Schedule C Overview Filing Schedule C (Form 1040) is vital for sole proprietors who need to report their business income or loss, as it provides a detailed account of profits and expenses for the tax year. You must complete Schedule C if your business income exceeds $400 after expenses. You’ll submit it alongside your federal income tax return. If your net earnings from self-employment reach $400 or more, you’ll likewise need to file Schedule SE to calculate your self-employment tax. Furthermore, you might require Schedule 1 for other income or adjustments, and Form 1040-ES for estimated tax payments. Accurate completion of Schedule C is fundamental for determining your tax liabilities and maximizing deductions for business-related expenses, reducing your taxable income overall. Additional Required Forms Completing Schedule C is just one part of your tax responsibilities as a sole proprietor; you’ll also need to be aware of several other forms that may apply to your situation. Here’s a quick overview of these forms: Form Purpose Schedule SE Calculate self-employment tax if net earnings exceed $400. Form 1099-NEC Report nonemployee compensation of $600 or more. Form 1040-ES Calculate and remit estimated tax payments quarterly. Schedule 1 Report additional income or adjustments to income. Filing Deadlines and Procedures Grasping the deadlines and procedures for filing your tax forms is crucial as a sole proprietor. You’ll need to file Schedule C (Form 1040) by April 15 to report your business income or loss, coinciding with your personal income tax return. If you expect to owe $1,000 or more in taxes, make quarterly estimated tax payments using Form 1040-ES by April 15, June 15, September 15, and January 15 of the following year. Furthermore, if you earn $400 or more from self-employment, you’ll have to file Schedule SE to calculate your self-employment tax. Remember to issue Form 1099-NEC for independent contractors paid $600 or more, and file your federal tax return by the deadline to avoid penalties. Tax Deductions for Sole Proprietorships Comprehending the various tax deductions available can greatly benefit your sole proprietorship, as these deductions help reduce your taxable income and improve your overall financial health. You can deduct ordinary and necessary business expenses, such as office supplies, advertising, and utilities, that are directly related to your operations. If you use a vehicle for business purposes, you can choose between the standard mileage rate or the actual expense method for deductions. Health insurance premiums for yourself and your family are likewise deductible as an adjustment to income on Form 1040. When starting a new business, you can deduct up to $5,000 in start-up costs in the first year, with any remaining costs amortized over 15 years. Furthermore, depreciation on business property allows you to recover asset costs over their useful life, further reducing your taxable income in the years you claim depreciation. Estimated Tax Payments for Sole Proprietors As a sole proprietor, comprehension of your obligation to make estimated tax payments can help you manage your finances effectively. If you expect to owe $1,000 or more in taxes for the year, you’re required to make these payments quarterly using Form 1040-ES. The due dates are April 15, June 15, September 15, and January 15 of the following year. To calculate your estimated tax payments, consider your expected income, deductions, and credits. Here’s a simple overview: Due Date Quarter Covered April 15 Income earned Jan – Mar June 15 Income earned Apr – May September 15 Income earned Jun – Aug January 15 Income earned Sep – Dec If your total tax owed is less than $1,000 after deductions, you won’t need to make estimated payments. Keeping track of your earnings helps you avoid underpayment penalties. Seeking Professional Tax Assistance Many sole proprietors find that seeking professional tax assistance can alleviate the intricacies of managing their tax obligations. Consulting a CPA or tax professional can be invaluable in maneuvering through complex tax forms and ensuring compliance with both federal and state tax laws. These experts help you maximize deductions by identifying all eligible business expenses and credits applicable to your situation. Moreover, engaging a tax advisor can assist you in accurately estimating quarterly tax payments, which helps avoid penalties for underpayment. They provide guidance on completing vital forms like Schedule C and Schedule SE, which are fundamental for reporting business income and calculating self-employment taxes. For new sole proprietors, professional assistance is particularly beneficial in comprehending tax obligations and avoiding common pitfalls associated with self-employment taxation. Frequently Asked Questions Do You File 1099 for Sole Proprietorship? Yes, you do file a 1099 for your sole proprietorship if you’ve paid contractors or freelancers $600 or more for their services during the year. The payer must issue Form 1099-NEC to report this income to the IRS. Furthermore, if you receive payments exceeding $600 through credit/debit cards or third-party networks, you’ll need to report that on Form 1099-K. Always keep accurate records to guarantee compliance with IRS requirements. How Do I File My Taxes as a Sole Proprietor? To file your taxes as a sole proprietor, start by gathering your income and expense records. You’ll need to complete Form 1040 and attach Schedule C, which details your business income and expenses. If your net earnings exceed $400, fill out Schedule SE for self-employment tax. Don’t forget to make quarterly estimated tax payments using Form 1040-ES if you expect to owe $1,000 or more by year-end. Check your state’s requirements too. Do Self-Employed Files Schedule C? Yes, self-employed individuals typically file Schedule C. This form allows you to report income and expenses from your business activities directly on your personal tax return. If your business income exceeds $400 after deducting expenses, you’ll need to complete this form. It helps determine your net profit or loss for the year, which is crucial for calculating your overall tax liability along with potential self-employment taxes. Does a Sole Proprietor Need to File Form 720? You typically don’t need to file Form 720 as a sole proprietor except when your business activities involve specific goods or services subject to federal excise taxes. Most sole proprietors, especially those providing services or selling non-taxable goods, are exempt. Nevertheless, it’s vital to assess your activities carefully. If you find any that trigger excise tax liabilities, then filing Form 720 becomes required to comply with federal regulations. Conclusion In summary, as a sole proprietor, you’ll primarily file Schedule C to report your business income and expenses. If your net earnings exceed $400, you’ll likewise need Schedule SE for self-employment tax calculations. Depending on your situation, additional forms like Schedules 1 and 2 may be necessary. Staying organized and comprehending your tax obligations is essential for maintaining compliance and minimizing potential issues. If needed, don’t hesitate to seek professional tax assistance to navigate the intricacies. Image via Google Gemini This article, "What Tax Form Does a Sole Proprietor File?" was first published on Small Business Trends View the full article

As a sole proprietor, you need to understand your tax obligations. When your net earnings exceed $400, you’ll file Schedule C with your Form 1040 to report your business income and expenses. You may likewise have to complete Schedule SE for self-employment tax. Additional forms might be necessary based on your situation. Knowing which forms to file is essential for accurate reporting and compliance. But what specific deductions can you claim to maximize your benefits? Key Takeaways Sole proprietors report business income and expenses on Schedule C (Form 1040). If net earnings exceed $400, Schedule SE is required for self-employment tax. Form 1099-NEC is used to report nonemployee compensation over $600. Additional forms like Schedules 1 and 2 may be necessary based on the financial situation. Estimated tax payments are filed quarterly using Form 1040-ES if taxes owed exceed $1,000. Understanding Sole Proprietorships When you think about starting a business, a sole proprietorship might be the simplest option available. This structure allows you to own and operate your business without a legal distinction between yourself and the entity. As a sole proprietor, you report your business income and expenses on the Schedule C form, which you file alongside your personal income tax return on Form 1040. Your sole proprietorship tax form helps you track your schedule C income directly, making the process straightforward. The profits and losses are considered your personal income, meaning they’re taxed at your individual tax rate. If your net earnings exceed $400, you’ll likewise need to pay self-employment taxes, calculated using Schedule SE. Since sole proprietors are “disregarded entities,” it’s crucial to understand how these forms work so as to guarantee compliance and accurately report your business activities. Required Tax Forms for Sole Proprietors As a sole proprietor, you’ll need to complete several key tax forms to accurately report your business income and expenses. Schedule C (Form 1040) is crucial for detailing your profits or losses, whereas Schedule SE calculates your self-employment tax if your net earnings exceed $400. Furthermore, depending on your financial situation, you may need to include other forms like Schedules 1 and 2, along with Form 1099-NEC for any nonemployee compensation over $600. Essential Forms Overview Comprehending the fundamental forms required for sole proprietors is essential for managing your business finances effectively. You’ll primarily file Schedule C (Form 1040) to report your business income or loss, which integrates into your personal tax return. If your net earnings exceed $400, you’ll furthermore need Schedule SE to calculate self-employment tax. In addition, Form 1040 is necessary for reporting total income, and you may need Schedules 1 and 2 for specific deductions. If you receive $600 or more in nonemployee compensation, use Form 1099-NEC, whereas payments from cards should be reported on Form 1099-K. For quarterly estimated tax payments, rely on Form 1040-ES. Form Name Purpose Schedule C Report business income or loss Schedule SE Calculate self-employment tax Form 1099-NEC Report nonemployee compensation Form 1040-ES Calculate estimated tax payments Self-Employment Tax Requirements For sole proprietors, comprehension of self-employment tax requirements is crucial since this tax applies to your net earnings from self-employment. You’ll need to file Schedule C (Form 1040) to report your business income or loss, which is included in your personal tax return. If your net earnings are $400 or more, you must calculate your self-employment tax using Schedule SE, covering Social Security and Medicare contributions. Don’t forget about Form 1099-NEC; if you receive $600 or more in nonemployee compensation, it must be reported as income. Furthermore, if you expect to owe $1,000 or more in taxes for the year, you’ll need to make quarterly estimated tax payments using Form 1040-ES. You can likewise deduct half of your self-employment tax. Filing Schedule C and Other Relevant Forms When you’re a sole proprietor, filing Schedule C (Form 1040) is vital for reporting your business income and determining your tax responsibilities. You’ll additionally need to take into account other forms like Schedule SE if your income exceeds $400, along with any additional schedules that may apply based on your unique financial situation. Comprehending these requirements and deadlines is fundamental to guarantee that you accurately report your earnings and comply with tax regulations. Schedule C Overview Filing Schedule C (Form 1040) is vital for sole proprietors who need to report their business income or loss, as it provides a detailed account of profits and expenses for the tax year. You must complete Schedule C if your business income exceeds $400 after expenses. You’ll submit it alongside your federal income tax return. If your net earnings from self-employment reach $400 or more, you’ll likewise need to file Schedule SE to calculate your self-employment tax. Furthermore, you might require Schedule 1 for other income or adjustments, and Form 1040-ES for estimated tax payments. Accurate completion of Schedule C is fundamental for determining your tax liabilities and maximizing deductions for business-related expenses, reducing your taxable income overall. Additional Required Forms Completing Schedule C is just one part of your tax responsibilities as a sole proprietor; you’ll also need to be aware of several other forms that may apply to your situation. Here’s a quick overview of these forms: Form Purpose Schedule SE Calculate self-employment tax if net earnings exceed $400. Form 1099-NEC Report nonemployee compensation of $600 or more. Form 1040-ES Calculate and remit estimated tax payments quarterly. Schedule 1 Report additional income or adjustments to income. Filing Deadlines and Procedures Grasping the deadlines and procedures for filing your tax forms is crucial as a sole proprietor. You’ll need to file Schedule C (Form 1040) by April 15 to report your business income or loss, coinciding with your personal income tax return. If you expect to owe $1,000 or more in taxes, make quarterly estimated tax payments using Form 1040-ES by April 15, June 15, September 15, and January 15 of the following year. Furthermore, if you earn $400 or more from self-employment, you’ll have to file Schedule SE to calculate your self-employment tax. Remember to issue Form 1099-NEC for independent contractors paid $600 or more, and file your federal tax return by the deadline to avoid penalties. Tax Deductions for Sole Proprietorships Comprehending the various tax deductions available can greatly benefit your sole proprietorship, as these deductions help reduce your taxable income and improve your overall financial health. You can deduct ordinary and necessary business expenses, such as office supplies, advertising, and utilities, that are directly related to your operations. If you use a vehicle for business purposes, you can choose between the standard mileage rate or the actual expense method for deductions. Health insurance premiums for yourself and your family are likewise deductible as an adjustment to income on Form 1040. When starting a new business, you can deduct up to $5,000 in start-up costs in the first year, with any remaining costs amortized over 15 years. Furthermore, depreciation on business property allows you to recover asset costs over their useful life, further reducing your taxable income in the years you claim depreciation. Estimated Tax Payments for Sole Proprietors As a sole proprietor, comprehension of your obligation to make estimated tax payments can help you manage your finances effectively. If you expect to owe $1,000 or more in taxes for the year, you’re required to make these payments quarterly using Form 1040-ES. The due dates are April 15, June 15, September 15, and January 15 of the following year. To calculate your estimated tax payments, consider your expected income, deductions, and credits. Here’s a simple overview: Due Date Quarter Covered April 15 Income earned Jan – Mar June 15 Income earned Apr – May September 15 Income earned Jun – Aug January 15 Income earned Sep – Dec If your total tax owed is less than $1,000 after deductions, you won’t need to make estimated payments. Keeping track of your earnings helps you avoid underpayment penalties. Seeking Professional Tax Assistance Many sole proprietors find that seeking professional tax assistance can alleviate the intricacies of managing their tax obligations. Consulting a CPA or tax professional can be invaluable in maneuvering through complex tax forms and ensuring compliance with both federal and state tax laws. These experts help you maximize deductions by identifying all eligible business expenses and credits applicable to your situation. Moreover, engaging a tax advisor can assist you in accurately estimating quarterly tax payments, which helps avoid penalties for underpayment. They provide guidance on completing vital forms like Schedule C and Schedule SE, which are fundamental for reporting business income and calculating self-employment taxes. For new sole proprietors, professional assistance is particularly beneficial in comprehending tax obligations and avoiding common pitfalls associated with self-employment taxation. Frequently Asked Questions Do You File 1099 for Sole Proprietorship? Yes, you do file a 1099 for your sole proprietorship if you’ve paid contractors or freelancers $600 or more for their services during the year. The payer must issue Form 1099-NEC to report this income to the IRS. Furthermore, if you receive payments exceeding $600 through credit/debit cards or third-party networks, you’ll need to report that on Form 1099-K. Always keep accurate records to guarantee compliance with IRS requirements. How Do I File My Taxes as a Sole Proprietor? To file your taxes as a sole proprietor, start by gathering your income and expense records. You’ll need to complete Form 1040 and attach Schedule C, which details your business income and expenses. If your net earnings exceed $400, fill out Schedule SE for self-employment tax. Don’t forget to make quarterly estimated tax payments using Form 1040-ES if you expect to owe $1,000 or more by year-end. Check your state’s requirements too. Do Self-Employed Files Schedule C? Yes, self-employed individuals typically file Schedule C. This form allows you to report income and expenses from your business activities directly on your personal tax return. If your business income exceeds $400 after deducting expenses, you’ll need to complete this form. It helps determine your net profit or loss for the year, which is crucial for calculating your overall tax liability along with potential self-employment taxes. Does a Sole Proprietor Need to File Form 720? You typically don’t need to file Form 720 as a sole proprietor except when your business activities involve specific goods or services subject to federal excise taxes. Most sole proprietors, especially those providing services or selling non-taxable goods, are exempt. Nevertheless, it’s vital to assess your activities carefully. If you find any that trigger excise tax liabilities, then filing Form 720 becomes required to comply with federal regulations. Conclusion In summary, as a sole proprietor, you’ll primarily file Schedule C to report your business income and expenses. If your net earnings exceed $400, you’ll likewise need Schedule SE for self-employment tax calculations. Depending on your situation, additional forms like Schedules 1 and 2 may be necessary. Staying organized and comprehending your tax obligations is essential for maintaining compliance and minimizing potential issues. If needed, don’t hesitate to seek professional tax assistance to navigate the intricacies. Image via Google Gemini This article, "What Tax Form Does a Sole Proprietor File?" was first published on Small Business Trends View the full article

A $20 smoothie and a $19 single strawberry could only belong in one place: Erewhon, the luxury grocery chain and celebrity hot spot in Los Angeles. But as of last week, it’s not the only so-called hypebeast grocer in West Hollywood. Just a few blocks away from one of Erewhon’s various locations, Laurel Supply, a giant market filled with natural light and timber interiors, looks unmistakably like an Erewhon to those passing by. The team behind the venture are the owners of the neighboring restaurant Laurel Hardware, meaning they had a deep knowledge of the area before opening, which, according to the local newspaper WEHO Times, was years in the making. Laurel Supply launched with no press release or social media, betting instead on two things: its aesthetics and the willingness of curious passersby to post their own content. “An Erewhon dupe just opened right across the street from Erewhon in West Hollywood,” a user said in a video on TikTok. Dozens of similar TikTok videos also flooded the app over the weekend, with Angelenos flocking to compare the new kid on the block. A new front in the fight for high-end shoppers Although shoppers with big enough bank accounts can opt to buy their entire groceries at places like Erewhon, most customers only buy specific products, such as items from the prepared food section or viral snacks. Still, Erewhon does more than break even, which explains why others might want to tap into the luxury grocery space, filled with aspiration and $20 celebrity-branded smoothies. The store, which has more than 10 locations, made $10.6 million just from its Hailey Bieber branded smoothie, which launched in 2022, bringing in around $40,000 to stores a month. And beyond its hero products, the brand made $171.4 million in profit in 2023, as Fast Company previously reported. It’s not just about single products, but rather the lifestyle that Erewhon sells along with it, which is why customers will pay a $200-a-year membership for exclusive perks like a free smoothie. “Erewhon is at the intersection of two game-changing trends in the luxury market today: luxury as an experience, not a product, and the wellness and well-being trends,” luxury retail expert Pamela Danziger told Vogue. While disrupting a niche giant might intuitively seem to require massive amounts of marketing, Laurel Supply is betting on none of it, relying instead on the same power that built Erewhon in the first place: social media. “The customer Erewhon built doesn’t respond to ads. They respond to “have you been to the new one,” product growth analyst Aakash Gupta said on X. “The store is the marketing budget.” Inside the store, freshly pressed juice in glass bottles are on view, as well as vibrant produce flooding the aisles. Ready-to-eat food is prepared in various stations, such as a matcha bar and a sushi counter. Even an in-house mill for pizza is made available for those wishing to grab and go or to dine in the sunny outdoor areas. And the staff is seemingly perfect, wearing matching white jackets. Gupta added: “Every detail engineered to photograph.” For now, the strategy of having no strategy seems to be working, with users online claiming the store has been busy throughout the weekend. As one TikTok user said: “You guys, I’m at Laurel Supply and I think it might be the hottest spot. Sorry, Erewhon.” View the full article

An Ahrefs report tested whether adding schema markup to pages already cited by AI improved their citation rates. The post Schema Markup Didn’t Move AI Citations In Ahrefs Test appeared first on Search Engine Journal. View the full article

Your family group chat’s favorite daily word game is about to get an adaptation for the screen. In a series of press releases published this morning, The New York Times and NBC announced a new joint venture: a game show series based on Wordle, The Times’ fan-favorite word-guessing game. The show will be produced by Universal Television Alternative Studio in partnership with Electric Hot Dog (Jimmy Fallon’s production company) and The Times. Wordle’s popularity is part of a broader, successful Games operation at The Times that’s turned users’ interactions with the publication into a daily ritual. And the forthcoming TV show is just the latest evidence of how much of a cultural phenomenon the Games category has become. How NYT Games have become part of the cultural zeitgeist Wordle, a simple word game that gives users six chances to guess a five-letter word of the day, was invented in 2021 by software developer Josh Wardle. Within just a few months of its release, it already had 300,000 users. A year later, The Times swept in to acquire the game for a low-seven-figure sum. The return-on-investment for this acquisition has proven to be massive. According to Caitlin Roper, executive editorial director for film and tv at The Times, tens of millions of players engage with Wordle weekly. “Tens of millions of people play New York Times Games every single day,” Roper says. “Over half of weekly users are playing more than one puzzle every day and over a quarter are playing four or more. Our puzzles were played 11.2 billion times in 2025. The Mini Crossword was played 1.4 billion times, 1.6 billion successful Connections were made, and Strands was played 1.5 billion times.” This is the first instance of The Times associating itself with a prime-time entertainment program on a major broadcaster—and it shows how users’ ritual use of games like Wordle has become a central pillar of The Times’ business over the past several years. Access to Games is a key way that The Times drives new digital subscriptions, which are one of the core backbones of its business. Per the company’s first quarter 2026 results, digital-only subscription revenues—which encompass subscriptions to the company’s news product, as well as to The Athletic, Audio, Cooking, Wirecutter, and, finally, Games—grew 16.1% year-over-year. Now, The Times is parlaying its most zeitgeisty game’s success into a show for modern viewers. “Wordle is already a social and shared experience,” Roper says. “People don’t just play it, they talk about it, compare results and solve together. That gave us a strong foundation to think about how it might translate into a game show, where that social experience can play out on screen.” “If you’re like me, you probably wake up every morning thinking about Wordle and savoring those precious moments of discovery, surprise and accomplishment,” Jonathan Knight, general manager for The Times‘ Games, told The Times after the acquisition. “The game has done what so few games have done—it has captured our collective imagination and brought us all a little closer together.” What we know so far about the Wordle game show Word-guessing game shows are part of a tried-and-true genre that’s been around for decades. Some of the most successful examples include Wheel of Fortune, Family Feud, Password, and Lingo. Typically, these shows see contestants duking it over over identifying the right words or phrases for a specific prize. Given its straightforward format and cult following, Wordle is a natural fit for a similar adaptation. According to an NBC press release, the show—which has been in the works for “several years”—will challenge players “to solve five-letter word puzzles in a supersized battle of smarts, speed, and fun.” Players will be organized into teams and go head-to-head in the “Wordle arena,” playing for what NBC calls an “incredible cash prize.” While little has been revealed about the actual look of the game, The Times reports that the series is expected to replicate the Wordle typeface and color scheme. An official release date for the show has not yet been announced. “This is really about audience and experience,” Roper says. “Wordle has a large, engaged community, and television offers a way to bring that experience to more people in a shared setting.” Casting for the Wordle show is currently open online, with applications closing on May 29. The show will be filmed this summer and hosted by Today Show show co-anchor Savannah Guthrie. Initial production, which was scheduled to take place this March, was paused amid the search for Guthrie’s mother Nancy, who has been missing since February. In an interview with The Times, Guthrie said of the show’s announcement: “It’s strange to say that I’m going to do a game show when your heart is broken. Nothing about that has changed, and it’s not easy, but I’m determined to put one foot in front of the other. And this is a joyous thing.” View the full article

Ukrainian authorities serve Andriy Yermak with an official notice that he is a suspect in $100mn graft scandalView the full article

Now that tax season for the 2025 tax year has wrapped up, it is time to plan ahead and get your 2026 tax strategy in order, especially if you earn tips or overtime income that qualifies you for a deduction based on the latest IRS guidance released in April 2026. Which types of freelance work qualify for the overtime and tip deductions? Below is a detailed breakdown of the rules on tip and overtime income and to whom they apply. Remember, your local and state taxing authorities may not conform with the internal revenue code, so it is prudent to check with a qualified tax professional to see how these deductions interact with your full tax picture. Freelancers should pay special attention to the year ahead since the "One Big Beautiful Bill Act" tax provisions are now in effect along with renewed focus from both the IRS and the Department of Labor on two areas that affect many independent workers: overtime rules and tip reporting. Understanding these changes now will help you avoid compliance issues and stay ahead of next year's filing requirements. Start with this primer on the tax implications of tips and overtime for your freelance taxes. Freelancers Pay Attention: FSLA Overtime Rules Only Apply to W-2 Wages First, let’s talk about The Fair Labor Standards Act (FLSA) overtime premium payment rules. These rules are only applicable to W-2 wages. So, if you work part time or seasonally for an employer paying you as a W-2, they may pay overtime. If you fall into that category, the updated overtime landscape matters for your tax planning. Only One-Third of Any W-2 Overtime Pay Is Actually Exempt on Your Tax Return If you receive W-2 wages at any point during 2026, beware that the overtime deduction only applies to the overtime premium part of your overtime income. This is one of the most misunderstood parts of the new law. The "no tax on overtime," deduction does not apply to your entire overtime W-2 paycheck. It applies only to the premium portion, or the extra "half" in time-and-a-half overtime payments mandated by the federal law which, in the case of the following example, is $15 per hour. This is what it looks like in practice. Say your regular hourly rate is $30. When you work overtime, you earn $45 per hour. The deductible portion is $15, the premium above your regular rate. That $15 represents one-third of your total $45 overtime hourly pay. The other two-thirds, your base rate of $30, is still fully taxable. Another key point: if your W-2 work arrangement pays more than time-and-a-half, such as double time at $60 per hour based on the example above, the deduction is still limited to the FLSA-required premium of $15. The additional amount above time-and-a-half does not qualify. The maximum annual deduction is $12,500 for single filers and $25,000 for joint filers. The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers). The deduction is available for both itemizing and non-itemizing taxpayers, and it is effective for tax years 2025 through 2028. Track Your Own Overtime Hours. Do Not Rely on Your Client to Do So. Proper tracking of your overtime income is critical. For the 2025 tax year, employers were not required to separately report qualified overtime compensation. The IRS issued Notice 2025-62 providing penalty relief to employers for 2025 regarding the new reporting requirements. Many employers simply did not break out overtime premium pay on W-2s because they were not required to. Beginning in 2026, employers and other payers are technically required to separately report qualified overtime compensation to all recipients. However, there is a real possibility that employers may receive another reporting waiver for 2026, similar to the relief granted for 2025. The IRS acknowledged that employers and payroll providers need time to reconfigure their systems, and 2025 was explicitly designated as a transition year. What does this mean for you? It is imperative that you track your own overtime hours on any W-2 work, or you can risk overstating or underreporting the deduction via estimation. Keep your own log of every week you work over 40 hours, your regular rate, and the premium portion of your pay. If your employer does not separately report your qualified overtime compensation, you will need your own records to calculate and claim the deduction accurately. The IRS has made it clear that you can still claim the deduction even if your client does not separately report the amount, but you need documentation to support it. What This Means for Your Freelance Tax Planning Overtime pay increases your taxable wages and affects your estimated tax payments. What you should do now to reduce your freelance tax risk: Keep any invoices and payment records that include overtime payments so you have a complete record of overtime hours and taxable wagesTrack overtime periods in your own log to verify against a clients’ documentation and to create your own tracking of income that can be deducted.Review your tax payments quarterly to make sure it reflects your full income picture.Tip Reporting Rules Have Tightened and Freelancers Are Now in Focus In addition to overtime reporting, the IRS has made tip reporting a major enforcement priority. On April 13, 2026, the IRS released final regulations (IR-2026-49) implementing the "No Tax on Tips" provision under Section 224 of the Internal Revenue Code. These final regulations do two important things: they define exactly what counts as a "qualified tip," and they publish the official list of 71 occupations that qualify for the deduction. Unlike overtime wages, freelancers are eligible for this exemption. The final regulations cover a far broader range of workers. The 71 qualifying occupations are organized into eight categories including: Beverage and Food Service (bartenders, wait staff, baristas, food delivery drivers)Entertainment and Events (DJs, event staff, performers)Hospitality and Guest Services (hotel staff, concierges, valets)Home Services (house cleaners, movers, handymen)Personal Services (floral designers, visual artists, pet groomers)Personal Appearance and Wellness (salon workers, barbers, massage therapists, personal trainers)Recreation and Instruction (tour guides, ski instructors, golf caddies)Transportation and Delivery (rideshare drivers, taxi drivers, gas pump attendants)If you are not sure whether your occupation qualifies, you can review the full list of occupations in the final regulations published in the link here or above. What Counts as a Qualified Tip Under the final regulations, a qualified tip must be: Received by a worker in one of the 71 listed occupationsVoluntary, meaning paid by a customer, not a mandatory service chargePaid in cash, check, credit card, debit card, gift card, or through an electronic payment or mobile payment appReported on a Form W-2, Form 1099-NEC, Form 1099-MISC, Form 1099-K, or separately reported by the individual on Form 4137For self-employed freelancers, this is key: you can claim the deduction even if you are not a W-2 employee, but the tips must be reported. If you receive tips through a digital platform and those tips appear on a 1099-K or 1099-NEC, they qualify. If you receive cash tips that are not reported on any form, you must report them yourself on Form 4137 for them to be deductible. The maximum annual tip deduction is $25,000. For self-employed individuals, the deduction may not exceed your net income from the trade or business in which the tips were earned. The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers). Like the overtime deduction, it is available for tax years 2025 through 2028. Tips that do not qualify include amounts received through a tip pool (though tips paid directly to an individual still qualify), mandatory service charges, and tips received by partners that are reported on an information return issued to a partnership. Digital Platforms Are Reporting More Than Ever The IRS continues to phase in the lower 1099-K threshold, but the rule remains the same. Tip income is taxable whether or not you receive a 1099-K. This is important for freelancers who rely on digital payments. Even if a platform does not issue a form, you are still responsible for reporting all income including tips. According to the official IRS guidance, all tips are taxable. This includes cash, digital payments, and tips added to invoices. Digital platforms now report more detailed data through 1099-K forms and internal reporting systems. Cash tips must be reported even if no third party documents them. The IRS compares 1099-K totals, 1099-NEC totals, reported gross receipts, and industry standard tip percentages. When numbers do not align, freelancers may receive automated notices next tax season. If you receive tips in your freelance work you must report: Cash tipsTips paid through Venmo, PayPal, Cash App, Square, StripeTips added to invoices or booking platformsGifts that are clearly compensationUnreported tips can trigger back taxes, accuracy-related penalties, failure-to-pay penalties, and audits, so it’s critical to get your records and tax records on track now to avoid these or other tax issues next tax season. Be Proactive! Track and Monitor the Impact of Overtime and Tip Income on Your Freelance Taxes Now Freelancers often juggle multiple income streams, and the IRS's renewed focus on overtime and tip reporting adds complexity to an already challenging landscape. The good news is that both of these new deductions can put real money back in your pocket if you qualify and document properly. The key is knowing the rules: only one-third of your overtime pay qualifies for the deduction, your client may not report it for you, and your tips must be in a qualifying occupation and properly reported to be deductible. With strong record keeping, consistent monthly reconciliation, and a clear understanding of the rules, you can stay compliant and take full advantage of these new tax benefits. If you are unsure how these rules apply to your situation, reach out to a tax professional who understands the unique needs of freelancers. A little planning now can make a significant difference later and help you avoid potential issues in your freelance taxes due to the new tips and overtime reporting requirements. View the full article

Now that tax season for the 2025 tax year has wrapped up, it is time to plan ahead and get your 2026 tax strategy in order, especially if you earn tips or overtime income that qualifies you for a deduction based on the latest IRS guidance released in April 2026. Which types of freelance work qualify for the overtime and tip deductions? Below is a detailed breakdown of the rules on tip and overtime income and to whom they apply. Remember, your local and state taxing authorities may not conform with the internal revenue code, so it is prudent to check with a qualified tax professional to see how these deductions interact with your full tax picture. Freelancers should pay special attention to the year ahead since the "One Big Beautiful Bill Act" tax provisions are now in effect along with renewed focus from both the IRS and the Department of Labor on two areas that affect many independent workers: overtime rules and tip reporting. Understanding these changes now will help you avoid compliance issues and stay ahead of next year's filing requirements. Start with this primer on the tax implications of tips and overtime for your freelance taxes. Freelancers Pay Attention: FSLA Overtime Rules Only Apply to W-2 Wages First, let’s talk about The Fair Labor Standards Act (FLSA) overtime premium payment rules. These rules are only applicable to W-2 wages. So, if you work part time or seasonally for an employer paying you as a W-2, they may pay overtime. If you fall into that category, the updated overtime landscape matters for your tax planning. Only One-Third of Any W-2 Overtime Pay Is Actually Exempt on Your Tax Return If you receive W-2 wages at any point during 2026, beware that the overtime deduction only applies to the overtime premium part of your overtime income. This is one of the most misunderstood parts of the new law. The "no tax on overtime," deduction does not apply to your entire overtime W-2 paycheck. It applies only to the premium portion, or the extra "half" in time-and-a-half overtime payments mandated by the federal law which, in the case of the following example, is $15 per hour. This is what it looks like in practice. Say your regular hourly rate is $30. When you work overtime, you earn $45 per hour. The deductible portion is $15, the premium above your regular rate. That $15 represents one-third of your total $45 overtime hourly pay. The other two-thirds, your base rate of $30, is still fully taxable. Another key point: if your W-2 work arrangement pays more than time-and-a-half, such as double time at $60 per hour based on the example above, the deduction is still limited to the FLSA-required premium of $15. The additional amount above time-and-a-half does not qualify. The maximum annual deduction is $12,500 for single filers and $25,000 for joint filers. The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers). The deduction is available for both itemizing and non-itemizing taxpayers, and it is effective for tax years 2025 through 2028. Track Your Own Overtime Hours. Do Not Rely on Your Client to Do So. Proper tracking of your overtime income is critical. For the 2025 tax year, employers were not required to separately report qualified overtime compensation. The IRS issued Notice 2025-62 providing penalty relief to employers for 2025 regarding the new reporting requirements. Many employers simply did not break out overtime premium pay on W-2s because they were not required to. Beginning in 2026, employers and other payers are technically required to separately report qualified overtime compensation to all recipients. However, there is a real possibility that employers may receive another reporting waiver for 2026, similar to the relief granted for 2025. The IRS acknowledged that employers and payroll providers need time to reconfigure their systems, and 2025 was explicitly designated as a transition year. What does this mean for you? It is imperative that you track your own overtime hours on any W-2 work, or you can risk overstating or underreporting the deduction via estimation. Keep your own log of every week you work over 40 hours, your regular rate, and the premium portion of your pay. If your employer does not separately report your qualified overtime compensation, you will need your own records to calculate and claim the deduction accurately. The IRS has made it clear that you can still claim the deduction even if your client does not separately report the amount, but you need documentation to support it. What This Means for Your Freelance Tax Planning Overtime pay increases your taxable wages and affects your estimated tax payments. What you should do now to reduce your freelance tax risk: Keep any invoices and payment records that include overtime payments so you have a complete record of overtime hours and taxable wagesTrack overtime periods in your own log to verify against a clients’ documentation and to create your own tracking of income that can be deducted.Review your tax payments quarterly to make sure it reflects your full income picture.Tip Reporting Rules Have Tightened and Freelancers Are Now in Focus In addition to overtime reporting, the IRS has made tip reporting a major enforcement priority. On April 13, 2026, the IRS released final regulations (IR-2026-49) implementing the "No Tax on Tips" provision under Section 224 of the Internal Revenue Code. These final regulations do two important things: they define exactly what counts as a "qualified tip," and they publish the official list of 71 occupations that qualify for the deduction. Unlike overtime wages, freelancers are eligible for this exemption. The final regulations cover a far broader range of workers. The 71 qualifying occupations are organized into eight categories including: Beverage and Food Service (bartenders, wait staff, baristas, food delivery drivers)Entertainment and Events (DJs, event staff, performers)Hospitality and Guest Services (hotel staff, concierges, valets)Home Services (house cleaners, movers, handymen)Personal Services (floral designers, visual artists, pet groomers)Personal Appearance and Wellness (salon workers, barbers, massage therapists, personal trainers)Recreation and Instruction (tour guides, ski instructors, golf caddies)Transportation and Delivery (rideshare drivers, taxi drivers, gas pump attendants)If you are not sure whether your occupation qualifies, you can review the full list of occupations in the final regulations published in the link here or above. What Counts as a Qualified Tip Under the final regulations, a qualified tip must be: Received by a worker in one of the 71 listed occupationsVoluntary, meaning paid by a customer, not a mandatory service chargePaid in cash, check, credit card, debit card, gift card, or through an electronic payment or mobile payment appReported on a Form W-2, Form 1099-NEC, Form 1099-MISC, Form 1099-K, or separately reported by the individual on Form 4137For self-employed freelancers, this is key: you can claim the deduction even if you are not a W-2 employee, but the tips must be reported. If you receive tips through a digital platform and those tips appear on a 1099-K or 1099-NEC, they qualify. If you receive cash tips that are not reported on any form, you must report them yourself on Form 4137 for them to be deductible. The maximum annual tip deduction is $25,000. For self-employed individuals, the deduction may not exceed your net income from the trade or business in which the tips were earned. The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers). Like the overtime deduction, it is available for tax years 2025 through 2028. Tips that do not qualify include amounts received through a tip pool (though tips paid directly to an individual still qualify), mandatory service charges, and tips received by partners that are reported on an information return issued to a partnership. Digital Platforms Are Reporting More Than Ever The IRS continues to phase in the lower 1099-K threshold, but the rule remains the same. Tip income is taxable whether or not you receive a 1099-K. This is important for freelancers who rely on digital payments. Even if a platform does not issue a form, you are still responsible for reporting all income including tips. According to the official IRS guidance, all tips are taxable. This includes cash, digital payments, and tips added to invoices. Digital platforms now report more detailed data through 1099-K forms and internal reporting systems. Cash tips must be reported even if no third party documents them. The IRS compares 1099-K totals, 1099-NEC totals, reported gross receipts, and industry standard tip percentages. When numbers do not align, freelancers may receive automated notices next tax season. If you receive tips in your freelance work you must report: Cash tipsTips paid through Venmo, PayPal, Cash App, Square, StripeTips added to invoices or booking platformsGifts that are clearly compensationUnreported tips can trigger back taxes, accuracy-related penalties, failure-to-pay penalties, and audits, so it’s critical to get your records and tax records on track now to avoid these or other tax issues next tax season. Be Proactive! Track and Monitor the Impact of Overtime and Tip Income on Your Freelance Taxes Now Freelancers often juggle multiple income streams, and the IRS's renewed focus on overtime and tip reporting adds complexity to an already challenging landscape. The good news is that both of these new deductions can put real money back in your pocket if you qualify and document properly. The key is knowing the rules: only one-third of your overtime pay qualifies for the deduction, your client may not report it for you, and your tips must be in a qualifying occupation and properly reported to be deductible. With strong record keeping, consistent monthly reconciliation, and a clear understanding of the rules, you can stay compliant and take full advantage of these new tax benefits. If you are unsure how these rules apply to your situation, reach out to a tax professional who understands the unique needs of freelancers. A little planning now can make a significant difference later and help you avoid potential issues in your freelance taxes due to the new tips and overtime reporting requirements. View the full article

Dream Finders Homes made its intentions public in an effort to push for shareholder approval following Beazer's rejection of two prior offers. View the full article

Market watchers say that the economy as a whole is holding up under higher energy prices and do not expect a recession. Even so, observers are watching financial markets and consumer spending for signs that inflation expectations are taking hold. View the full article

Microsoft chief explains his decision to back AI lab’s boss in 2023 coup attempt during testimony in Elon Musk’s lawsuitView the full article

Prices rose 0.32% last month on a seasonally adjusted basis, equal to a 3.9% annualized rate, according to ICE Mortgage Technology's mortgage monitor report. View the full article

Ten years ago, the New York City Council passed the Freelance Isn’t Free Act, guaranteeing freelancers the right to a contract, full payment in 30 days, and protection against retaliation. Since then, the law has been passed in the cities of Los Angeles, Columbus, Minneapolis, Seattle, and statewide in New York, California, and Illinois. Yet there are still scores of freelancers who aren’t paid on time, threatening their livelihoods and making independent work too precarious for many to enter into. 75% of freelancers, roughly 150,000 people each year, experience late pay in New York City alone. That’s why New York City Council Member Chi Ossé recently introduced a bill to create the City-Run Freelancers Payment Fund. Freelancers could choose to opt into the fund by paying a small fee. Freelancers would then get paid via the fund, instead of waiting on payment from their client. The city would be responsible for being reimbursed by the hiring party, engaging them for the payment instead of the freelancer. This relieves the freelancer of having to wait on payment that might never come, or risk fraying relationships by chasing it. If the bill passes, the program would be administered by the Department of Small Business Services, and the fund’s operations handled by the Economic Development Corporation. The Department of Consumer and Worker Protection would also play a role in implementation and enforcement. For those of you in New York City, contact your local city council member and let them know that you want them to sign onto Council Member Ossé’s bill. The Freelance Isn't Free Act passed in New York City and then was quickly adopted elsewhere. A decade later, it's time to set another precedent. View the full article

Ten years ago, the New York City Council passed the Freelance Isn’t Free Act, guaranteeing freelancers the right to a contract, full payment in 30 days, and protection against retaliation. Since then, the law has been passed in the cities of Los Angeles, Columbus, Minneapolis, Seattle, and statewide in New York, California, and Illinois. Yet there are still scores of freelancers who aren’t paid on time, threatening their livelihoods and making independent work too precarious for many to enter into. 75% of freelancers, roughly 150,000 people each year, experience late pay in New York City alone. That’s why New York City Council Member Chi Ossé recently introduced a bill to create the City-Run Freelancers Payment Fund. Freelancers could choose to opt into the fund by paying a small fee. Freelancers would then get paid via the fund, instead of waiting on payment from their client. The city would be responsible for being reimbursed by the hiring party, engaging them for the payment instead of the freelancer. This relieves the freelancer of having to wait on payment that might never come, or risk fraying relationships by chasing it. If the bill passes, the program would be administered by the Department of Small Business Services, and the fund’s operations handled by the Economic Development Corporation. The Department of Consumer and Worker Protection would also play a role in implementation and enforcement. For those of you in New York City, contact your local city council member and let them know that you want them to sign onto Council Member Ossé’s bill. The Freelance Isn't Free Act passed in New York City and then was quickly adopted elsewhere. A decade later, it's time to set another precedent. View the full article