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Unlock the secrets of AI visibility to adapt your website for future search trends and improve technical SEO practices. The post The Tech SEO Audit for the AI Search Era: How to Maximize Your AI Visibility appeared first on Search Engine Journal. View the full article

You know the feeling we are talking about. Your friend calls to ask for your help moving on a Saturday when you were planning on doing nothing. Or your sister-in-law asks you to invest in her business, and you are afraid there is no way it will succeed. Even when the person asking for the favor isn’t someone central to your life, it is still painful to say no. Most of us don’t even like saying no to telemarketers. That’s why there are so many jobs in sales. Often, we end up making bad decisions to avoid the short-term discomfort of turning people down. Look, we agree—saying no is hard. The good news is that a little preparation and practice will make it easier. Even if you are one of those people that dreads it. We will look at different kinds of ‘no’s’ that are appropriate in different situations. Sometimes, there is a clear answer, and you want the other person to accept your offer without complaint. Your kids, for example, should know there is no argument about bedtime. Your boss needs to accept that you can’t work late anymore after coming back from maternity leave. The sooner they accept the reality, the happier everyone will be. Other times, you might be willing to be persuaded. You like the job offer, but the salary could be better. In that case, you might want to say no in a way that encourages them to try again or try harder. You Can Say No Nicely While being able to give a flat, unequivocable no is an important skill to develop, it’s not the goal. Usually, we want to be more polite, even if we find another’s proposal unattractive. Why? Because we never know when we will want to revisit that now-closed door. Preserving the relationship can allow a chance to revisit in the future, and we always like to maintain future opportunities if possible. The standard way to be respectful is to help someone learn why you aren’t interested. Here’s the problem with that: When you tell the reason you are turning them down, you give them information that they can use to make another appeal or proposal. Let’s say you are a young unattached woman. A guy asks you to go to dinner at the local barbeque joint, but you aren’t interested in him. If you tell him, “No thanks, I am a vegetarian,” there’s nothing stopping him from saying, “OK, so why don’t we go to Tofu Town?” Now it’s harder to say no, because you’ve given an inaccurate reason for your refusal. So instead of giving your reasoning, let’s discuss other ways that you can give a nice no. For those of you who have discomfort with no, this may be a balm for that, because it allows you to exit gracefully (but still unequivocally). Be Polite Thank them for asking. And you can apologize that you don’t have a different answer. “That is so kind of you. I appreciate your asking. I’m sorry but I can’t say yes.” The strength of your answer doesn’t require you to be rude. What makes it emphatic is that you give them a clear, inarguable response. “It’s Not You, It’s Me.” Your reasons don’t have to imply a negative judgment. Don’t let your reason have anything to do with them. It is only about you and your preferences. If someone offers you a job and you aren’t interested, you might say: “I’m dedicated to my current team.” “I’m on a good trajectory and am not interested in moving.” And our favorite: I’m so grateful, but it’s not the right time for a move.” None of these present a good opportunity for them to try again. When you consider possible responses to shut down further efforts to persuade you to say yes to a request, try to imagine a workaround. Use obstacles that can’t be solved or resolved rather than something like, “Sorry, I’m not interested in a lateral move,” because they could suggest an elevated position. Keep Your Reasons Vague The more information you give the other person about a problem, the easier it is for them to think of a solution. If you are not looking for a solution, provide as little information as possible. Keep your response short and to the point. If they ask for more information, remember, you are under no obligation to share it. “I’m so grateful but it’s not the right time for a move.” “How come?” “There are some exciting internal opportunities, but I’m not at liberty to discuss them.” If they keep pressing you, push back more firmly. “I’m afraid you will have to accept my decision as final.” Now, sometimes people do sincerely want feedback on why their offer wasn’t good enough. Remember that you never have to, but if you want to provide that feedback, feel free to do so—just be cautious about offering them an opening to try to draw you back into a negotiation. In addition, be kind when offering the feedback. Make Suggestions for Their Alternative A colleague of ours works with a speaker’s bureau. She gives talks at big speaking events and conventions. She is extremely well paid and charges a standard fee. Occasionally, a potential client will try to bargain her fee down. She tells them, “The speaker’s bureau I work with charges all my clients the same rate so I can treat everyone fairly. I know I may not be the right choice for everyone’s budget. I can suggest some of my younger colleagues who do an excellent job and are more affordable.” There are several reasons why this works. First, it’s clear that you aren’t engaging in a bargaining ploy. Someone who is genuinely interested in a speaking engagement doesn’t suggest the competition. So, the customer knows she isn’t bluffing. Second, while rejecting the offer, she is trying to fill the client’s need. And it gives her the chance to potentially push some work to deserving younger colleagues. Excerpted from NEVER SETTLE. Copyright © 2026, John Richardson and Attia Qureshi. Reproduced by permission of Simon Acumen, an imprint of Simon & Schuster. All rights reserved. View the full article

Currency weakens after US Treasury secretary meets finance minister Satsuki KatayamaView the full article

It’s five answers to five questions. Here we go… 1. I was fired for charging customers’ cash purchases to my credit card Started my part-time summer job (I am retired) a few weeks ago, working at small convenience/snack/candy store near a local free tourist attraction that opened up for the season. Got fired yesterday. This year, the store went to a “no cash” payment system. Small sign on the door, another by the register. Problem is, not all people carry other forms of payment besides cash, mostly older folks, plus who wants to use their credit card for a 50 cent piece of candy? To help these customers out, especially ones who don’t have another form of payment available, I accepted their cash, then ran the transaction on my credit card. I asked if this was okay with them before hand and printed off a receipt that I kept for my records to keep everything on the “up and up.” The owners noticed the number of receipts with my name on it and questioned me. I explained what I was doing and why and they fired me on the spot for “violating company policy.” I asked them to show me the policy and they could not. I asked them what specifically I was doing wrong, they could not give me an answer. I understand “employment at will” so they can let me go for any reason, but I may file for unemployment because they didn’t have a “valid” reason for firing me and that is why I am writing. Was what I did wrong? Yeah, it wasn’t wise. You were overriding the store’s payment policy; you basically created your own means for customers to pay, without first checking with your employer. I think they overreacted by firing you — they should have just told you to stop doing it — but you should have asked your manager first if it was okay to do it, especially before doing it multiple times. Most importantly, having a bunch of receipts with an employee’s name on them is likely to raise red flags from an auditor. Beyond that, though, a customer could come in when you’re not working and expect a different cashier to do the same thing you were doing, and then be upset or frustrated when they refuse. It also opens your employer to accusations that they’re accepting cash from some customers and not from others. 2. New boss keeps questioning how I’m doing things When I started this job about 10 months ago, my old manager made sure to give me positive even when I was new. Any negative feedback became a conversation instead of something accusatory, and she noted in my performance reviews that I was doing great but needed more confidence. My old manager made me feel heard and like I could talk to her about any troubles I was having at work. However, she left the company, and our team’s new manager isn’t as great. It’s only been a few weeks but I constantly feel questioned as to why I’m doing things the way I am. What’s worse is that I don’t notice her asking similar things to my teammates. I feel like I’m being singled out and I’m the youngest with the least amount of experience. I never get positive feedback from my new manager, and it’s taking a toll on my self-esteem because I can’t accurately judge if I’m good at the job or not. Do you have any advice for me? I really like the job and with my old manager, saw myself staying for years. Now I’m contemplating if I want to stick around more. It’s possible that you’re being singled out because you’re the least experienced, but it’s also possible that you’re being singled out because your new manager finds you the most approachable or thinks your explanations are the clearest or shortest or she likes your way of doing things. It’s also possible that she’s asking your coworkers and you just don’t see it. Or, yes, it’s possible that she’s doubting your expertise. But why not ask her? You could say, “Do you have concerns about the way I’m doing things like X or Y? You’ve asked me a lot about it, and I wasn’t sure if you’re just interested in the way we do this or if you’re concerned by anything about how I’m approaching the work.” 3. We give raises to salaried workers, but not hourly workers I work for a private college. They annually give cost-of-living raises to salaried employees, but hourly employees in the department I oversee and in comparable departments have stayed the same for the last eight years. I’ve spoken to my manager, who is a very nice human but doesn’t want to be seen as challenging and struggles with negotiations in any setting. I’m trying to prep him effectively to argue that if both merit and cost-of-living raises are the norm for salaried employees, then even if part-time roles are capped on a pay scale and even if merit raises are not an option, if the company recognizes the need for cost-of-living raises for salaried workers, this logic should be applied to anyone working for the organization. Would love some input. What on earth. If an employer recognizes cost-of-living raises are necessary to keep up with inflation, there’s no logical basis for excluding hourly workers from that (unless there’s some really odd and extenuating circumstance, like that somehow all the salaried workers just happened to be dramatically underpaid and none of the hourly workers are, which seems pretty unlikely). Are they just completely uninterested in retaining the hourly workers and unconcerned by the costs of finding and training replacements? In your boss’s shoes, I’d start by asking for the reasoning for excluding hourly workers from salary adjustments to keep up with inflation and go from there (next, presumably pointing out that hourly workers face the same cost-of-living increases as other employees, and that turnover from not retaining them will be disruptive). 4. How can people get my attention when I’m wearing headphones? I work in an open concept floor plan, with my desk facing (gloriously!) a window. To cope with the noise and to be able to focus, I wear noise-cancelling headphones that really block out everything. People often come up behind me and want to get my attention. I was wondering if there was any technology gimmick that I could use — something like a button they could press for a light to turn on at my desk, or something to push a notification. The sillier, the better! I am not shy about putting together something custom. Any ideas, or even keywords that I could search, would be amazing! Right now I am trying to use a mirror, which is probably the best low-tech option, but I’d love to know if there’s something more fun I could do. There are earbuds that allow you to hear human voices over music — but it sounds like you’re purposely trying to drown out human voices most of the time. There’s also tech that was initially developed for deaf users that will trigger a visual alert like flashing a desk lamp. The search term you want is “alerting devices.” 5. What are employers doing about high gas prices? I’m curious if your readers are hearing anything from their employers regarding the exorbitant gas and oil prices right now? I haven’t heard anything from my employer, but I’d love to know if (and how) other companies are communicating about this. What can (or should) we expect when transportation costs are this high? My sense is that the majority of employers aren’t doing this, but some companies are offering gas cards or cash stipends or temporarily increasing mileage reimbursement rates. Some are also increasing work-from-home options or temporarily suspending return-to-office mandates. Here are some articles about what specific companies are doing: 1, 2, 3, 4 The post I was fired for charging customers’ purchases to my credit card, new boss keeps questioning me, and more appeared first on Ask a Manager. View the full article

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. 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