Income Tax (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

The components of income taxes benefit are as follows:

	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	)

Schedule of Deferred Tax Assets and Liabilities

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:

	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