It's one thing to be taxed on retirement contributions and their related earnings when you withdraw funds from your IRA or 401(k) during retirement. It's quite another when you pay the tax PLUS a 10% penalty for an early withdrawal. Need funds prior to retirement and want to avoid the early withdrawal penalty? Here is what you need to know.
If you have problems getting to sleep at night and you turn to the IRS tax code for help, you might find some vocabulary that is very foreign to words you use every day. One of the more common words used by the IRS is the term contemporaneous. So what does it mean and why should you care?
In March 2025, a presidential executive order directed federal agencies to move federal payments and collections away from paper and into electronic systems “to the extent permitted by law.” That includes IRS refunds and, eventually, payments to the IRS as well.
Following that order, the IRS announced that it would begin phasing out paper refund checks for individual taxpayers starting September 30, 2025.
For the 2026 filing season and beyond, taxpayers should assume that refunds will normally be paid electronically, with paper checks reserved for a shrinking set of exceptions.
OBBBA adds a temporary, targeted deduction for tips. It is not a universal no tax on tips. Many tipped amounts are still taxable, and payroll taxes still apply.
Here is the clean, CFO-level breakdown:
For years, crypto tax reporting has lived in a strange world where taxpayers were expected to self-report everything while the IRS had limited third-party visibility. That era is ending.
Starting with 2025 transactions, custodial crypto platforms must begin reporting certain digital asset sales and exchanges on a new IRS information return: Form 1099-DA (Digital Asset Proceeds From Broker Transactions).
That means more taxpayers will receive crypto tax forms that look and feel a lot like the brokerage forms we have dealt with for decades.
Convenient? Eventually.
Pain-free? Do not get carried away.
With the passage of the One Big Beautiful Bill Act (OBBBA) of 2025, there's the ability to receive a deduction for overtime pay from your federal tax obligation. Here's a recap of the rule and several tax tips to ensure you receive the full benefit of the deduction.
Big news for 2026: Updated mileage rates are here! The way you record your travel could earn you extra cash in your pocket.
The One Big Beautiful Bill Act (OBBBA) makes tip income tax-free. But as with any new tax law, the fine print matters, and some of these details still need clarification.
Here is what you should know.
With the pending tariffs and turbulent markets, the last thing on most taxpayers minds is tax planning. But in the midst of all this turmoil is the potential for tax saving activity available to those willing to plan accordingly. Here is what you need to know.
While more and more legislation is introduced that penalizes all of us for doing things wrong on our tax returns, please remember that at its origin, tax collection in the U.S. is voluntary. In other words, the tax code is defined, we are given due dates, and the government asks us to voluntarily comply.
When you don’t, there are late filing penalties, underpayment penalties, fines, fees, interest and other imposed compliance incentives including audits. To help guide Congress and the Treasury Department, there are ongoing studies conducted to try to calculate the trends in non-compliance.
Now Is the Time to Make Estimated Tax Payments.
If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. The 4th quarter due date for the 2025 tax year is due on or before January 15, 2026.
With kids now back in college, the fact of higher educational costs is impossible to ignore.
As you or your child navigates campus, you are now in position to start navigating the possible tax implications of your new-found college expense.
Outlined here are three of the more popular ways to reduce your taxes in 2025 as a result of this educational expense burden.
As important tax records start filling mailboxes, how can you make sure your tax preparation goes smoothly and efficiently this year? Here are some tips.
Hackers and data thieves target personally identifiable information or (PII). They also know their best score can be had by filing information using your tax ID and stealing your withholdings before you are the wiser. But by working together, we can mutually reduce the risk of this happening to you. Here are some tips:
Your number one defense to becoming a victim is to be aware. So whenever you open an email, read a text, answer a phone, or go to a website, keep your awareness switch on high. This is especially true in this age of AI. Fake emails look more real than ever. Voice replication can duplicate a voice and texts come from valid looking vendors.
DO NOT send any tax records attached to an email. Only use safe, encrypted paths to do so or simply drop off the material in person. Copies of 1099s and W-2s are needed, but only if they are sent securely.
Your security can be broken down into these three categories:
Physical: Keep your data physically safe. Be sure your records are in locked places and your digital data on your computer is password protected AND encrypted. Destroy old documents, shred the paper ones, and keep backups of your data.
Technical: Keep your software up to date, including antivirus software and computer/phone operating systems. Use secure passwords and turn on multi-factor authentication whenever possible.
Administrative: Keep yourself up-to-date on the newest threats. When you receive breach notices, take security action. And monitor your accounts, especially financial ones.
If you have any concerns whatsoever, understand the IRS has an identity protection program that requires providing a unique ID when filing your tax return. The ID is required if you have had your tax information stolen, but its participation is otherwise voluntary. If you are in the program, understand your tax return CANNOT be filed without this security code.
If you are the least bit suspicious about a tax-related call or contact, reach out immediately. Help is but a call away.
As part of your planning for next year, now is the time to review funding your retirement accounts in 2026. Recent cost of living calculations means much higher contribution limits for next year. So plan now to take full advantage of this tax benefit. Here are annual contribution limits for the more popular programs:
Subject: The Hidden Benefits of Filing a Gift Tax Return (Form 709) in 2026
If you’ve made larger gifts to family or others, you may be required to file a federal gift tax return (Form 709), even if you don’t owe any actual gift tax.
Filing can feel like extra paperwork, but it also provides important protection and clarity for you and your estate.
The IRS has issued 282 pages of proposed digital asset reporting regulations, along with official IRS explanation of the provisions, which cover a range of digital asset issues where there have been questions. Issues addressed include expansive definitions of brokers and a requirement that proceeds from the sale of digital assets be reported to the IRS starting in 2026, on new Form 1099-DA for transactions on, or after January 1, 2025.
Big changes are coming to clean energy incentives — and sooner than many realize. A wide range of popular tax credits for electric vehicles, home energy upgrades, solar installations, commercial clean fleets, and even new energy-efficient construction are all set to phase out starting in late 2025. If you’ve been considering an EV purchase, home solar, or energy-efficient improvements, the window to benefit from these incentives is closing fast. Dive into our full breakdown to see which credits are disappearing, when they end, and how to make the most of them before they’re gone.
As required by law, in every Form 1040 instruction booklet there's a section that shows where our federal government gets its money and where it is spent. As taxpayers it makes sense to know this information.
Here is the data for the government's fiscal year ending September 30, 2023, as reported by the IRS in the 2024 instruction booklet for Form 1040:
Throughout the year, natural disasters can strike unexpectedly, from wildfires to hurricanes, and the aftermath often leaves communities in need of support. While the urge to help is strong, it’s important to ensure that the organizations you donate to are legitimate and not scams.
Additionally, while fewer taxpayers are itemizing deductions, those who do want to make sure their charitable contributions are legitimate for tax purposes. Here are some tips on how to research organizations before donating your funds, no matter the time of year.
