Kevin DeAngelo, Tax Man

06/16/2026

This is one we've covered a few times before, but for the startups out there this is some important information.

Hobbies and businesses are treated differently when it comes to filing taxes. In simple terms, businesses operate to make a profit while hobbies are for pleasure or recreation.

It's not always cut and dry. Income may need to be reported and 1099-Ks could potentially be issued in either case.

Let's look at some questions to help determine if you have a hobby or a business...

▪︎ Is there an intent to make a profit?
▪︎ If the activity makes a profit, how much is it?
▪︎ Can they expect to make a future profit from the appreciation of the assets used in the activity?
▪︎ Do they depend on income from the activity for their livelihood?
▪︎ Are any losses due to circumstances beyond their control or are the losses normal for the startup phase of their type of business?
▪︎ Are operations adjusted to improve profitability?
▪︎ Is the activity carried out like a business with complete and accurate books and records kept?
▪︎ Do the taxpayer and their advisors have the knowledge needed to carry out the activity as a successful business?

06/14/2026

Did Father's Day with my folks today since I will be out of town for it. Took Molly to see them after her nail clipping, but she wasn't having any of the pictures 🤣🤣

#

06/09/2026

In all seriousness, if you are worried about this type of situation, let's chat! As I always say, I'm here to help turn your tax stress into tax success!!

06/06/2026

05/31/2026

Most people don't think about taxes during the summer, but there’s some common activities that could impact taxpayers in the next filing season.

▪︎ Summer day camp - If a taxpayer is sending a child to summer day camp, the cost may count toward the Child and Dependent Care Credit.

▪︎ Marriage - Summer is peak wedding season. Newlyweds can make their tax filing easier by taking two simple steps. First, report any name change to the Social Security Administration.
Next, notify the USPS, employers and the IRS of any address change. To officially change their mailing address with the IRS, taxpayers must complete and submit Form 8822, Change of Address.

▪︎ Part-time/seasonal work - Summer seasonal and part-time workers may not earn enough to owe federal income tax, but they’re encouraged to file a tax return in the next filing season to get any refund they may be owed. Some taxpayers earn income over the summer through a side hustle or doing gig work. If taxpayers are paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions.

▪︎ Travel - Most kids may have the summer off, but parents generally don't – and business travel happens year-round. Tax deductions are available for certain people who travel away from their home or main place of work for business reasons. Whether a business traveler is away for a few nights or all summer long, it’s important for them to remember the tax rules related to business travel.

05/26/2026

Molly doesn't care about the rearranged living room as long as she can sleep 🐈‍⬛🐈‍⬛🐈‍⬛

05/26/2026

Calming waters ease a troubled mind ⛲️

05/25/2026

Homeownership can be beneficial to taxpayers with certain deductions that lower their tax liability and possibly increase their refund.

Taxpayers must itemize their deductions to deduct homeownership expenses. Most home buyers take out a mortgage to buy their home, and their mortgage lender may bundle other home-related costs.

The costs the homeowner can deduct are:

- State and local real estate taxes, subject to a $40,000 limit or $20,000 if married filing separately

- Home mortgage interest, within the allowed limits

Homeowners can't deduct any of the following items:

• Insurance including fire and comprehensive coverage and title insurance

• The amount applied to reduce the principal of the mortgage

• Wages paid to domestic help

• Depreciation

• The cost of utilities, such as gas, electricity or water

• Most settlement or closing costs

• Forfeited deposits, down payments or earnest money

• Internet or Wi-Fi system or service

• Homeowners’ association fees, condominium association fees or common charges

• Home repairs

05/12/2026

Taxpayers who discover an error after filing a federal tax return may need to file an amended return. There are some instances where an amended return isn’t required such as when the IRS corrects errors during processing or requests missing forms or schedules separately.

Reasons to file an amended return include changes to key items on the original return, including: filing status, income, deductions, credits, dependents, and tax liability.

In order to claim a refund, an amended return must generally be filed within three years from the date the original return was filed, or two years from the date the tax was paid, whichever is later.

If the original return was filed early, the three-year period begins from the April tax deadline. Special rules apply when there are net operating losses, foreign tax credits, bad debts or other issues. Additionally, taxpayers in disaster relief situations, combat zone service, have bad debts, foreign tax credits, or loss or credit carrybacks, may have more time to file an amended return.

Taxpayers must file Form 1040-X, Amended U.S. Individual Income Tax Return. When filing, they should:

- Submit a corrected Form 1040, 1040-SR, or 1040-NR for the applicable tax year
- Attach any supporting documents and updated forms or schedules

For tax years 2021 and later, taxpayers may request direct deposit of refunds when filing electronically. If additional tax is owed, payment should be submitted with the amended return. The amended return replaces the original return, and the IRS will calculate any applicable penalties or interest if filed after the due date.

Taxpayers can check the status of an amended return approximately three weeks after it’s submitted. It generally takes 8 to 12 weeks for it to be processed. However, in some cases, processing could take up to 16 weeks.

State tax considerations must also be considered when filing an amendment. Credit for this direct information belongs to the IRS.