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Income Tax | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Tax | NOTE 12 - Income Tax The components of income taxes benefit are as follows: Schedule of Effective Income Tax Rate Reconciliation
|  | December 31, 2024 |  |  | December 31, 2023 |
Federal rate |  |  | 21.00 | % |  |  | 21.00 | %
Blended state tax rate |  |  | 4.12 | % |  |  | 4.11 | %
Effective tax rate |  |  | 25.12 | % |  |  | 25.11 | %
Schedule of Effective Tax Rate Reconciliation
Effective Tax Rate Reconciliation for the Year Ended December 31, 2024
|  |  |  |  | % |  |  | $ |
Pretax Book Income |  |  | 959,561 |  |  |  | 21.00 | % |  |  | 201,508 |
Permanent Differences |  |  | 84,240 |  |  |  | 1.84 | % |  |  | 17,690 |
PY Federal Perm True-up |  |  | 117,653 |  |  |  | 2.57 | % |  |  | 24,707 |
State income tax |  |  | 68,981 |  |  |  | 6.79 | % |  |  | 65,198 |
Other Deferred adjustment |  |  | - |  |  |  | -0.73 | % |  |  | (6,989 | )
Total Tax Expenses |  |  |  |  |  |  | 31.47 | % |  |  | 302,114 |
HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023
Effective Tax Rate Reconciliation for the Year Ended December 31, 2023
|  |  |  |  | % |  |  | $ |
Pretax Book Income |  |  | (3,160,454 | ) |  |  | 21.00 | % |  |  | (663,695 | )
Permanent Differences |  |  | 78,048 |  |  |  | -0.52 | % |  |  | 16,390 |
PY Federal Perm True-up |  |  | 73,914 |  |  |  | -0.49 | % |  |  | 15,522 |
State income tax |  |  | 24,136 |  |  |  | 3.12 | % |  |  | (98,586 | )
Other Deferred adjustment |  |  | - |  |  |  | 0.01 | % |  |  | (391 | )
Total Tax benefits |  |  |  |  |  |  | 23.12 | % |  |  | (730,760 | )
Schedule of Tax Expense Summary
|  | Current |  |  | Deferred |  |  | Total |
|  | Income Tax |  |  | Income Tax |  |  | Income Tax |
Tax Expense Summary, for the Year Ended December 31, 2024 |  | Expense |  |  | Expense |  |  | Expense |
Federal |  |  | 39,989 |  |  |  | 193,145 |  |  |  | 233,134 |
State |  |  | 18,013 |  |  |  | 50,967 |  |  |  | 68,980 |
Total Tax Expense |  |  | 58,002 |  |  |  | 244,112 |  |  |  | 302,114 |
|  | Current |  |  | Deferred |  |  | Total |
|  | Income Tax |  |  | Income Tax |  |  | Income Tax |
Tax Expense Summary, for the Year Ended December 31, 2023 |  | Benefit |  |  | Benefit |  |  | Benefit |
Federal |  | $ | (637,242 | ) |  | $ | - |  |  | $ | (637,242 | )
State |  |  | (117,654 | ) |  |  | 24,136 |  |  |  | (93,518 | )
Total tax expense (benefit) |  | $ | (754,896 | ) |  | $ | 24,136 |  |  | $ | (730,760 | )
HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets at December 31, 2024 and 2023 were as follows: Schedule of Deferred Tax Assets and Liabilities
|  | Deferred Tax Assets |  |  | Deferred Tax Assets |
Deferred Tax Assets summary |  | December 31, 2024 |  |  | December 31, 2023 |
Federal |  | $ | 908,691 |  |  | $ | 1,101,836 |
State |  |  | 151,413 |  |  |  | 202,379 |
Total |  | $ | 1,060,104 |  |  | $ | 1,304,215 |
|  | Deferred Tax Assets |  |  | Deferred Tax Assets |
Deferred Tax Assets summary |  | December 31, 2024 |  |  | December 31, 2023 |
Operating lease right of use lease assets |  | $ | 787 |  |  | $ | 172 |
Inventories allowance |  |  | 140,743 |  |  |  | 169,725 |
Net loss carry forward |  |  | 918,574 |  |  |  | 1,134,318 |
Total |  | $ | 1,060,104 |  |  | $ | 1,304,215 |
The Company files income tax return in the U.S. federal jurisdiction and various state jurisdictions. Based on management’s evaluation, there is no provision necessary for material uncertain tax position for the Company at December 31, 2024 and 2023. For the years ended December 31, 2024 and 2023, the Company reported net operating income (loss) of $657,447 and $(2,429,694), respectively. The net operating loss carryforward is not subject to any expiration period under federal regulations, while at the state level, the expiration period usually ranges up to 20 years, or there may be no expiration period at all. The Company expects to generate sufficient taxable income in future periods against which the deferred tax assets can be utilized. Accordingly, a valuation allowance may not be needed. HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023

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