Taxes can be complicated, and the rules often come with exceptions. While it’s always wise to consult a professional, here are answers to some of the most frequently asked tax questions.

What Happens If a Loan Is Forgiven?
If a lender cancels your debt, the IRS generally treats the forgiven amount as taxable income. That means you may need to report it on your tax return and pay taxes on it.

You’ll typically receive Form 1099-C, which shows the canceled amount. There are exceptions, so check with a tax advisor to see if you qualify for relief.

Is My Child’s Lemonade Stand Money Taxable?
Yes. Any money your child earns—from mowing lawns, babysitting, or a lemonade stand—is considered taxable earned income.

Even if they owe no income tax (thanks to the $15,000 standard deduction in 2025), they may still owe Social Security and Medicare taxes if they’re considered self-employed.

Are Credit Card Rewards Taxable?
It depends.

• Not taxable: Cash back or travel points earned by spending money.

• Taxable: Bonuses or referral rewards received without spending (such as a sign-up bonus just for opening a card).

The IRS considers non-purchase-based rewards as taxable income.

Do Employer Contributions Count Toward My 401(k) Limit?
No. Your employer’s contributions do not count toward your annual 401(k) contribution limit.

In 2025, you can contribute up to $23,500 yourself, and if you’re age 50 or older, you can make an additional $7,500 catch-up contribution, for a total of $31,000.

What Happens to Retirement Account Loans When I Change Jobs?
If you took a loan from your employer-sponsored retirement plan, you usually must repay it quickly when you leave the job.

If not repaid, the loan becomes a distribution, which is taxed as income and may be subject to a 10% early withdrawal penalty.

Do I Need to Report Gifts I Give?
Yes—but only if you give more than $19,000 to any one person in 2025 (or $38,000 as a married couple).

If you exceed that, you’ll need to file a gift tax return. You won’t owe taxes unless your total lifetime gifts exceed $13,990,000 (or $27,980,000 if married).

Should I Report a Loss?
Absolutely. Whether it’s a stock loss or a business loss, report it.

Why? Because you may be able to offset other income with the loss, and even carry it forward to future tax years. Losses can provide valuable tax relief when used strategically.

Have more questions? A quick planning session with a tax professional can help you avoid surprises and make the most of your situation.