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Income Tax
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Tax

NOTE 11 – Income Tax

 

The components of income taxes provision (benefit) are as follows:

 

           
   June 30,   December 31, 
   2022   2021 
Federal rate   21.02%   21.00%
Blended state tax rate   3.81%   4.05%
Effective tax rate   24.83%   25.05%

 

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2022 and 2021 are presented below:

 

   Current   Deferred   Total 
   income tax   income tax   income tax 
Tax Expense Summary  expense (benefit)   benefit   benefit 
Federal   -    (236,678)   (236,678)
State   -    (42,864)   (42,864)
Total Tax Expense   -    (279,542)   (279,542)

 

 

HOUR LOOP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2022

(Unaudited)

 

The Company files income tax return in the U.S. federal jurisdiction and Washington state jurisdictions. Based on management’s evaluation, there is no provision necessary for material uncertain tax positions for the Company at June 30, 2022.

 

           
   Deferred Tax   Deferred Tax 
   Assets   Assets 
Deferred Tax Assets summary  June 30, 2022   December 31, 2021 
Federal   274,815    38,137 
State   50,215    7,351 
Total Net DTA (DTL)   325,030    45,488 

 

           
   Deferred Tax   Deferred Tax 
   Assets   Assets 
DTA/(DTL) Summary  June 30, 2022   December 31, 2021 
ROU   (780)   (780)
Inventories Allowance   93,583    46,268 
Net Loss   232,227    - 
Total Net DTA (DTL)   325,030    45,488