#108 Taxes and Trends

Welcome back!

Closing out February with some perspective from one of the social media GOATs, Gary Vaynerchuck:

Taking this advice further: I’m over 30, and I don’t have everything figured out. And that’s fine. I’m not sure anyone ever has all the answers or becomes a finished product. Life is about constant evolution.

And that’s what this newsletter is all about.

To give people the information and tools they need to evolve…and that’s whether you’re 18 or 80.

Now let’s jump in!

Ending February On A High Note

FATTENING THE WALLET 💰️ 

• Making Cents of Two Tax Forms

ELEVATING YOUR BRAND 📈 

• The Search Bar: AI Companies, Search Trends, and Rising / Falling Apps
  

• Companies Making Major Moves, Including Apple, Starbucks, and Just Eat

BOOSTING YOUR PRODUCTIVITY 🚀 

• Taxes are the Featured Hustle in Hustle Hub

MAKING CENTS 💰️ 

The Difference Between a W-2 and Form 1099

Short and Sweet:  

A W-2 is what you get when you're an employee — your employer handles tax withholdings, making tax time a bit easier.

A 1099 is for independent contractors who receive full pay and must manage their own taxes.

Knowing the difference helps you plan your budget and tax strategy better…especially if you’re interested in freelance work or independent contracting.

• Employees with a W-2 have taxes automatically deducted throughout the year, reducing the hassle at tax time.
  

• If you’re on a 1099, you’re responsible for setting aside money since you’re not taxed when you’re obtaining income throughout the year.

Q&A TIME:

How do tax responsibilities differ between the two forms?

• With a W-2, your taxes are automatically taken out, making filing easier. With a 1099, you need to track your income and make tax payments when they’re due to avoid underpayment penalties.

Why might someone choose a 1099 role over a W-2 job?

• A 1099 position (freelance, consulting, etc.) offers more flexibility and independence (which is something a lot of people appreciate nowadays), allowing you to choose projects and work on your own schedule. But like I said, you manage your own tax responsibilities, so keeping track of your expenses is critical.

How can I keep track of my expenses as a 1099 contractor?

• Using budgeting apps or accounting software can simplify tracking business expenses, which helps you maximize deductions and maintain accurate records for tax filing.

What should I do if I’m unsure about my tax obligations?

• Consider consulting a tax professional or using tax software to ensure you’re setting aside the right amount for taxes, regardless of which form you receive.

When is the tax deadline?

• 4/15.

Should I file personally or hire someone?

• It depends on your situation. If you’re a straightforward W-2 employee, filing on your own with good software (like Turbotax) might work well. But if you’re juggling multiple 1099 gigs or complicated deductions, a tax pro can save you time and potential headaches.

O.T.F. 
O.F.T - One Final Thought

I’ve worked at my employer right out of school for the last 9 years and I’ve received a W-2 from my employer. I then submit the W-2 to my accountant to file my taxes.

However, with this newsletter starting to make money, I use QuickBooks to keep track of revenue, expenses, etc. to ensure I stay on top of everything, especially come tax season next year.

Moral of the story: stay ready and be prepared, so you don’t end up like this…

THE SEARCH BAR 🔎 

February 2025

• 60 Top Growing AI Companies (courtesy of Exploding Topics) - While the stock market seems pretty volatile lately, AI and tech stocks are the hot investment. If you’re looking to get involved, maybe browse this list and see whose stocks are right for you.
  

• Google Trending Topics - Here’s are the most searched topics in the United States as of writing this newsletter (Monday at 2 PM et):

For those that don’t know: at any moment, you can check what’s trending on Google. Simply go to trends.google.com and explore for yourself.

• Trending Apps (courtesy of SimilarWeb.com) - Below are the biggest risers and fallers in terms of app downloads and usage:

HUSTLE HUB 🤝 

YOUR SUCCESS:

Get Informed - Are taxes a hustle 😂 If so, here’s how expected IRS cuts may impact your 2025 refund.

OUR SUCCESS?

Get…Excited? - The Department of Government Efficiency has floated the idea giving the money they save back to the people in the form of $5K tax rebates / refunds. Here’s what you need to know at this point.

YOUR SUCCESS:

Get Protected - Be on the lookout for these 5 tax scams this season!

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MAJOR MOVES 🗞️ 

AI, Tech & Retail

• APPLE - To pay, or not to pay? That is the tariff question facing many US businesses these days. Apple’s answer is headline news: “Apple said Monday it will invest $500 billion on expanding US facilities over the next four years, a move that could help it avoid new tariffs on goods imported from China.” 

• just eat - “European food delivery giant Just Eat is poised to be acquired by Dutch tech investor Prosus in an all-cash deal worth roughly $4.3 billion.” With this news, shares of Just Eat, which had been struggling the last few years, rose almost 55%. If you’re invested, bravo 👏 
  

• STARBUCKS - Not all of this week’s Major Moves are positive, though. Looks like Starbucks is struggling lately: “Starbucks plans to lay off 1100 corporate employees globally as new Chairman and CEO Brian Niccol streamlines operations.”

  
  

Before You Go!

Thanks for joining us for another edition of OTF!

Next week, we’ll be back with March’s first edition. In the meantime, please respond to our latest poll on your way out!

Community Poll 📊 

Last Week’s Poll Results:

Do You Have Interest to Start Your Own Business One Day?

• YES - 80%

• NO - 20%

See you next Tuesday 🤝 

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