Practical tax tips and deduction strategies for individuals and small business owners. Actionable advice to help you minimize liability and maximize returns.
Do I owe tax when I’m paid to care for a family member? Usually, yes — the caregiver tax picture turns on whether the caregiver is an employee of the family or self-employed, whether the money qualifies as a Medicaid waiver payment, and whether the family has to file Schedule H and issue a Form…
What employee tax benefits can my business offer in 2026? The federal tax code pays for a surprising share of a competitive benefits package. The right employee tax benefits can lower a small employer’s net cost of paid leave, education, child care, retirement savings, and even a new Trump Account, through credits and exclusions that…
Will individual fraud victims be able to deduct their losses again? On September 16, 2026, the House passed HR 9500 by a 408–17 vote. If the Senate agrees and the President signs, the fraud victims tax deduction is restored outside federally declared disasters, the retirement-account early-withdrawal penalty is waived in scam cases, and victims gain…
What is the Education Freedom Tax Credit, and how does it work? The Education Freedom Tax Credit is a new federal nonrefundable credit under Internal Revenue Code Section 25F, worth up to $1,700 for individual cash contributions to state-listed Scholarship Granting Organizations. It begins January 1, 2027 and only applies in states that have elected…
What can I do in the new IRS app? On Sept. 25, 2026 the IRS retired IRS2Go and launched a new IRS app that connects to selected Individual Online Account features — refunds, balances, payments, notices, transcripts, and your Identity Protection PIN — from your phone. For more than a decade the mobile face of…
How fast is US LLC formation time in 2026? The state filing itself can be as short as a few hours (Delaware expedited, Wyoming online) or as long as several weeks (New York with publication, California by mail), but the full path to a running business — including EIN and a bank account — usually…
What is the Kwong tax refund case, and does it extend the two-year deadline for COVID-era refund claims? The U.S. Court of Federal Claims held that 26 U.S.C. § 7508A(d) automatically postponed the § 6532(a)(1) refund-suit deadline for the entire COVID-19 disaster period. The government has appealed to the Federal Circuit and argues the postponement…
Is the Tribal Tax Credit scam real? Yes — the fake credit being pitched is real, but the credit itself is not. In IR-2026-112, the IRS said the Tribal Tax Credit scam involves promoters selling credits that do not exist under federal law, and claiming one on a return is a false claim exposing you…
Are influencer tax rules any different from regular tax rules? No. The Tax Court’s first ruling involving a social-media creator, Sami v. Commissioner, applied the same ordinary-and-necessary business expense standard used for every other business. What actually decides an influencer tax audit is substantiation, business purpose, and whether the activity is a real trade or…
Which year-end tax planning moves actually shift a high earner’s 2026 tax bill? The ones the Internal Revenue Code closes at midnight on December 31 — retirement contributions coded to a payroll cycle, wash-sale-safe loss harvests, exercised stock options, direct-to-charity IRA distributions, and completed annual-exclusion gifts. Year-end tax planning for high earners is less about…
What is the IRS Tax Compliance Report? It is a digitally authenticated PDF, available inside the IRS Individual Online Account, that confirms your federal filing and payment status without exposing your income or return line items. The tax compliance report is designed to be shared with lenders, employers, and government agencies that need proof of…
Is there a California tourist tax refund for visitors shopping during BTS Week? No. California does not refund sales tax to foreign visitors, and there is no federal program either. A California tourist tax refund does not exist because U.S. sales tax is a single-stage state and local tax, not a value-added tax. The 9.75…
What are the pop-up shop sales tax rules for a temporary vendor in California? Get a free CDTFA temporary seller’s permit before the first sale, charge the rate of the city where the customer takes the goods (Inglewood is 10.25 percent, Los Angeles 9.75 percent), pay use tax on giveaways, and file by the date…
Do you owe concert ticket resale tax on BTS SoFi tickets you flipped? If you sold for more than you paid, yes. Concert ticket resale tax applies to the net gain whether or not StubHub or Ticketmaster sends a Form 1099-K. The 2026 reporting threshold is $20,000 and 200 transactions, so most fans will never…
What does a BTS Week sales spike change in your books? Four things: your CDTFA sales tax filing frequency can change, tip records must stay clean for the new tip deduction, temporary staff earn daily overtime under California law, and your September 15 estimated tax should stay on the safe harbor. A BTS Week sales…
Who qualifies under the new IRS refundable credit rules? Treasury and the IRS proposed on August 19, 2026 to treat the refunded portion of the EITC, Child Tax Credit, American Opportunity Credit, and Adoption Credit as a federal public benefit under PRWORA — available only to U.S. citizens, U.S. nationals, and qualified aliens. For families,…
How do I prove to a lender or employer that I paid my taxes? Use the new IRS Tax Compliance Report. Available through your IRS Individual Online Account, it is a digitally certified, downloadable document that confirms whether you filed on time and paid what you owe — without disclosing your income or filing details….
A dental practice runs three quarterly cycles that do not line up: payroll returns, federal estimated tax, and California on a 30/40/0/30 schedule.
How do I appeal an IRS decision I disagree with? You can ask the IRS Independent Office of Appeals to review your case. The IRS appeal process is a formal, unbiased review that operates separately from the IRS office that made the original determination — and every taxpayer has the right to use it under…
How much of my overtime pay is actually tax-free? Less than most workers think. The new no tax on overtime deduction is capped at $12,500 (single) or $25,000 (joint), phases out above $150,000 MAGI, and applies only to the FLSA overtime premium — not the entire overtime paycheck. On August 6, 2026 the IRS released…
Are my charitable donations at risk of an IRS challenge? They can be if you fall for one of the charitable contribution scams the IRS just named on its 2026 Dirty Dozen list. Fake charities and inflated non-cash appraisals top the list, and both can turn a well-intentioned gift into a disallowed deduction, penalties, and…
How do major life events affect my tax filing? Marriage, a new child, divorce, and the death of a loved one can all change your life events tax filing — from your filing status and withholding to the credits and deductions you can claim. Handling each event with the IRS the same year it happens…
How do major life events affect my taxes? Marriage, a new child, divorce, and the death of a spouse each change your filing status, your withholding, and the credits you can claim. The life events tax impact shows up on next year’s return — but the paperwork you need to update is due now, not…
What records do I actually need to deduct my charitable donations? The IRS requires charitable donation records for every gift you claim — a bank record or written communication for cash, a written acknowledgment for anything $250 or more, and Form 8283 for larger noncash gifts. And beginning in 2026, non-itemizers can also deduct up…
What should newlyweds do about their taxes after the wedding? Follow a short newlywed tax checklist: update your name with the Social Security Administration, file a change of address with the IRS if you moved, give your employer a new Form W-4 within 10 days, pick a filing status, and combine your records — the…
Do I have to ask the IRS for penalty relief anymore? Not for the most common relief. Starting summer 2026, the IRS is replacing First Time Abate with automatic penalty relief — the new Automatic Exemption from Penalty (AEP) will waive failure-to-file, failure-to-pay, and failure-to-deposit penalties for eligible taxpayers during return processing, with no request…
Do seasonal and part-time workers change my payroll tax obligations? No — hiring seasonal employees does not create a lighter set of federal payroll rules. Wages paid to summer, holiday, and part-time help are subject to the same federal income tax withholding, Social Security, and Medicare taxes as wages paid to your full-time staff. The…
What is a Trump Account and how do I open one for my child? A Trump Account is a new federally authorized investment account for children, created by the One Big Beautiful Bill Act as IRC Section 530A. The Trump Accounts guide below walks families through the $1,000 federal seed deposit, $5,000 annual contribution cap,…
What tax steps should newlyweds take after the wedding? Update your name with Social Security, file a fresh Form W-4 with each employer, tell the IRS if you moved, and model your return under both joint and separate filing status. This newlywed tax checklist walks through each step so next spring is calm, not chaotic….
Who can claim the new Federal Scholarship Tax Credit? Starting January 1, 2027, individual taxpayers can claim the Federal Scholarship Tax Credit — a federal credit of up to $1,700 for cash donations to Scholarship Granting Organizations (SGOs) in a participating state. Twenty-eight states have already opted in. Beginning next year, a new line item…
