You may remember that the One Big Beautiful Bill Act (OBBBA) includes a provision commonly called "No Tax on Tips". Last year, the government issued a preliminary list of occupations covered under this provision. Based on feedback from the public, the Treasury Department has now issued final regulations that expand that list of occupations and adds some additional clarification. The…
If you have taxable income from sources such as investments, self-employment, or pass-through entities, you may need to make estimated tax payments throughout the year. If you work for an employer, you're familiar with the federal and state withholding that's deducted from each of your paychecks. But if you have income from other sources, such as your side hustle, investment…
While your brains (and ours!) might still be thinking about 2025 taxes, here are some new provisions that take effect beginning in 2026: Child and Dependent Care Tax Breaks The maximum child and dependent care credit will now be between $1,050 and $1,500 for one dependent and between $2,100 and $3,000 for two or more dependents, depending on income level…
Who's Affected? Individuals who itemize deductions. If you take the standard deduction, this change doesn't affect you. What's changing in 2026? A provision in the recently passed One Big Beautiful Bill Act (OBBBA) will reduce your charitable deduction by 0.5% of your AGI (not 0.5% of the gift). In 2025, there's no haircut on your charitable deduction. $10,000 Gift for an Itemizer Comparing the Deduction…
Tax season might be behind us (hooray!), but there are still a few smart steps you can take now to wrap things up smoothly and set yourself up for success next year. Here are five things to consider: Save a Copy of Your Return Keep both a digital and paper copy of your return, along with all supporting documents like…
Two tax credits may apply to your tax situation if you have children, and one of those will potentially increase if pending tax legislation passes in time for your 2023 return. Child Tax Credit The Child Tax Credit applies if you had a child in 2023 that meets these criteria: Has a Social Security number that is valid for employment…
We don’t usually comment on pending legislation because of the uncertainty of its passage. However, a tax bill is being fast-tracked through Congress that includes retroactive provisions that could affect your 2023 tax bill . . . if it passes both Houses of Congress quickly enough. The bill enjoys a rare commodity - broad bipartisan support - and lawmakers have…
The rules regarding required minimum distributions (RMDs) have been somewhat flexible over the past few years due to the pandemic as well as SECURE Act 2.0 which passed at the end of 2022. Here's some recent guidance and clarification from the IRS that affects account owners whose first RMD was in 2023: First, some background info . . . Traditional…
To download a handy chart of 2024 dollar limits for employee benefit plans and various tax items, click on the link below: 2024 Dollar Limits Flyer
It's no secret that the government observes different holidays than many of us. Furthermore, the IRS observes holidays applicable to the District of Columbia, which can also throw a curveball. Here's the list of legal holidays observed by the IRS in 2023: January 2—New Year's Day (observed) January 16—Birthday of Martin Luther King, Jr. February 20—Washington's Birthday April 17—District of…