Does the Section 351 ETF conversion still work after Rev. Rul. 2026-20? Not the way it has been sold. The IRS now treats a planned transfer of securities to a new ETF followed by an authorized-participant redemption of those same securities as a single taxable exchange, not a tax-free diversification. The Section 351 ETF conversion…
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…
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…
Who can now use the IRS Business Tax Account? As of 2026, the IRS Business Tax Account covers partnerships, tax-exempt organizations, Indian tribal governments, and federal, state, and local governments, alongside the sole proprietors and corporations who had access before. Inside the account, entities can view digital notices, download CP575 EIN verification, and pay against…
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,…
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 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 qualifies for the new $25,000 federal tip deduction? The tip deduction 2026 is an above-the-line deduction for workers in customarily tipped jobs — waiters, bartenders, stylists, rideshare drivers and roughly 70 other IRS-listed occupations — worth up to $25,000 of qualified tips for tax years 2025 through 2028, subject to income phaseouts. For decades,…
Do you owe tax when you rent out your vacation home? It depends on how many days. Understanding vacation home rental tax starts with one number: 14. Rent the place 14 days or fewer a year and the income is tax-free; rent it more and the income is taxable — but you can deduct expenses,…
