Did you have gross income that did not exceed $12,200 ($24,400 for married couples) for 2019?

If so you can provide the necessary information to the IRS quickly and easily for FREE through Non-Filers: Enter Payment Info. IRS will use this information to determine your eligibility and payment amount and send you an Economic Impact Payment. After providing this information you won’t need to take any additional action.

An important distinction in the 'World of Tax' is the difference between a “Business” and a “Hobby”. Simply put, income received in the course of business is assessable income and is counted towards tax, whereas income received as a result of a hobby is not.

There is no single factor which determines if your income producing activity is a business or hobby, however, weigh these characteristics in mind:

1. Is there intent to start a business, and started preliminary steps to become a business (obtain an EIN)?

◦ If yes, leaning towards business

◦ If no, leaning towards a hobby

2. Is there intention to make profit (even if unlikely to do so in the short term)?

◦ If yes, leaning towards business

◦ If no, leaning towards a hobby

3. Is your size/scale consistent with your industry?

◦ If you’re the size worthy of becoming competition in your industry, then you are likely to be  operating a business

◦ If you sell a knitted scarf to a friend every now, then this is more likely a hobby

4. Is your activity planned and organized like other businesses?

◦ If you keep accounts, reports, separate bank accounts, operate at another premises, have a  registered business name; then these activities mean you operate a business.

◦ If the activity is infrequent or on a whim with no records kept, you more likely have a hobby.

Income from a hobby is not taxable, and there are no reporting obligations to keep.

Remember, a hobby can grow into a business. Where the line is crossed largely comes down to the way the activity is conducted. Once a hobby becomes a business, income received will be taxable you will have reporting obligations to keep.

The IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.”  This is even more important this year because of recent changes to the tax law for 2018.

The Calculator helps you identify your tax withholding to make sure you have the right amount of tax withheld from your paycheck at work.

There are several reasons to check your withholding:

• Checking your withholding can help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year. 
• At the same time, with the average refund topping $2,800, you may prefer to have less tax withheld up front and receive more in your paychecks. 

The Internal Revenue Service today advised taxpayers that the doubling of the standard deduction due to tax law changes is likely to reduce the number of taxpayers who normally itemize.

New tax laws for family tax credits