Traditional vs. Roth 401(k): Should You Make the Switch?

Do you have both traditional and Roth accounts within your employer’s 401(k)? If so, and you’re willing and able to pay taxes now — and you’d prefer not to pay them in retirement — consider an in-plan rollover. That is, your plan may allow you to transfer funds from your traditional 401(k) account into your […]

College Financial Aid: What’s Tax-Free and What’s Not?

If you’re currently evaluating financial aid awards for your college-bound child, it’s important to understand what types of assistance are taxable. In general, free-money scholarships, fellowships, grants and tuition “discounts” are nontaxable. However, they must be used according to their designations — for example, for tuition, books and educational materials. Work-study compensation (even if referred […]

Gifting vs. Inheriting: The Tax Difference That Matters

Estate planning is different these days. With a historically high gift and estate tax exemption, most families are unlikely to face federal gift or estate tax liability. This makes it critical to understand the income tax impact of asset transfers, including the stepped-up basis rules. Generally, for people inheriting appreciated assets (such as stock, real […]

Tax Season Is Over—But Don’t Toss Those Records Yet

The April tax filing deadline has passed. If you filed your return on time, you may be wondering what tax-related records you need to retain. The IRS’s statute of limitations for auditing a tax return is generally three years from the return’s due date or the filing date, whichever is later. So keep the documents […]

White House budget request cuts IRS funding

In its April 6, 2026, budget request for fiscal year (FY) 2027 (https://bit.ly/3Of7xNI), the White House proposes allocating $9.8 billion to the IRS. This represents a $1.4 billion reduction from FY 2026. The White House says that IRS personnel cuts of 27% and the termination of the Direct File program make such cuts possible. It […]

Foreign transfers may incur excise tax

Beginning this year, a 1% excise tax applies to certain remittance transfers from U.S. senders to recipients in foreign countries. Remittance transfer providers must collect these remittance transfer taxes from senders and pay them to the IRS. Specifically, the tax is levied when remittances are sent from the U.S. to recipients in foreign countries if […]

IRS issues final regulations on qualified cash tips

The IRS has issued final regulations on the tax deduction for qualified cash tips. The One Big Beautiful Bill Act created the deduction of up to $25,000 per year for 2025 through 2028. Qualified tips generally refer to cash tips received by an individual in an occupation that “customarily and regularly” received tips on or […]

IRS reminds taxpayers to be fraud aware

The IRS recommends that taxpayers create an individual online account to securely access their tax information. This account lets you view your refund status, make payments, check your balance and more. However, the IRS also advises taxpayers to be cautious and watch for identity thieves. Create and always access your account directly through IRS.gov, and […]

Post Office rule change impacts taxpayers

New U.S. Postal Service rules could affect taxpayers who mail their tax returns. Postmarks may be applied when mail reaches automated processing, not necessarily when it’s dropped off in the mailbox or handed to a carrier. This might result in returns being postmarked after the actual mailing date. Tax returns postmarked after April 15 are […]

Beware of OIC offers to settle tax debt

Some taxpayers are allowed to settle their debt with the IRS for less than the amount owed with an offer in compromise (OIC). However, beware of “OIC mills.” These fraudsters often promote themselves on social media or local radio and television stations, promising they can help taxpayers resolve tax debt issues quickly and inexpensively. In […]