Caring for a Loved One? Your Medicaid Waiver Payments May Be Tax-Exempt

Do you care for a relative or someone else and receive Medicaid waiver payments (MWPs) as compensation? These payments are generally tax-exempt. For you to exclude MWPs from income, the payments must be issued by your state’s MWP program, you need to live in the home with the Medicaid patient and you must not care […]

Options for forfeited employee FSA balances

Many businesses offer health care and dependent care flexible spending accounts (FSAs) as part of their employee benefits package. These plans provide valuable tax savings to employees and payroll tax savings to employers. If your company operates a calendar-year FSA with a 2½-month grace period, employees have until March 15 to incur eligible expenses for their […]

AICPA Shares Key Recommendations for Future IRS Filing Seasons

The American Institute of CPAs (AICPA) has weighed in on the 2026 tax filing season. In a recent letter to the U.S. Senate Finance Committee, it largely commended the IRS’s performance but mentioned that phone services were somewhat inconsistent. The AICPA letter also recommended ways the IRS can improve in future filing seasons. Specific ideas […]

Understanding IRS Fraud & Abuse Rules

The IRS categorizes a tax return containing inaccuracies that could lead to overstated credits or understated income as “potentially abusive.” It labels a return as “fraudulent” if the taxpayer attempts to file using another person’s Social Security number or includes information that has no basis in fact. Participating in an illegal scheme to evade taxes […]

FAQs about CAMs

If you’ve ever skimmed the auditor’s report for a public company and noticed a section titled critical audit matters (CAMs), you may have wondered what it means and whether it’s relevant to you. CAMs highlight complex, high-judgment areas that drive audit inquiries and testing procedures. Even for private companies, understanding audit risks can be helpful, […]

Trump proposes temporary suspension of gas tax

As the cost of gasoline continues to rise, President Trump is calling for a temporary suspension of the federal gas tax. Currently, the national tax is 18.4 cents per gallon for gas and 24.4 cents per gallon for diesel. An average of 51 cents in taxes and fees is added to every gallon of gas, […]

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The Hidden Tax Challenge Many Surviving Spouses Face

When a husband or wife dies, the surviving spouse may eventually face a higher income tax bill. Why? Filing status shifts from married filing jointly to single or head of household, triggering higher tax rates at lower income levels. So, if income remains relatively steady, the survivor can be pushed into a higher bracket. In […]

Summer Jobs Mean Summer Tax Responsibilities for Teens

A summer job is a great way for teens to earn extra cash, but it also comes with tax responsibilities. Anyone with self-employed income over $400, such as earnings from mowing lawns or babysitting, must file an income tax return and may owe self-employment tax. If a teen works for an employer that withholds payroll […]

Moving a Loved One Into a Nursing Home? Don’t Overlook the Tax Implications

Is your parent or another elderly family member moving into a nursing home? There may be tax implications. For example, long-term care expenses may qualify as an itemized deduction if they, along with other medical expenses, exceed 7.5% of adjusted gross income (only the amount over 7.5% is deductible). As long as your relative is […]