House Bill doesn’t completely remove tax on overtime

President Trump has repeatedly promised to abolish income tax on overtime pay. However, the bill passed by the U.S. House wouldn’t reduce tax for all workers putting in extra hours. Only hourly and some salaried employees required to be paid time-and-a-half after working 40 hours in a week would be affected. And only the 50% […]

10 Federal Tax Tips

To help ensure small businesses take advantage of all potential tax breaks, the Taxpayer Advocate Service (TAS) summarizes the types of tax you may owe and provides a list of 10 federal tax tips (https://bit.ly/43WgUFP). Among the tips are to separate your business and personal finances, which means establishing business-only bank accounts and credit cards. […]

Earned Income Tax Credit

As of December 2024, nearly 23 million families had received about $64 billion from the Earned Income Tax Credit (EITC) since its inception in 1975. The credit is intended to help low- and moderate-income working families. Eligibility depends on adjusted gross income, filing status and the number of qualifying children. Under the proposed One, Big, […]

Miss the filing deadline?

The IRS is highlighting several resources available to help taxpayers who missed the April 15, 2025, federal income tax return filing deadline and owe taxes, interest and penalties. The tax agency recommends that taxpayers who owe taxes file their returns and pay any taxes due as soon as they can. Interest and penalties will continue […]

Consider a 529 Plan for education costs

While students may be in summer mode, many parents are already thinking ahead to fall education costs. One smart, tax-advantaged tool to consider is a Section 529 savings plan. 529 plans aren’t new, but they’ve grown more versatile over the years. Originally limited to college expenses, they now also cover up to $10,000 per year […]

Miss the Deadline?

The second quarter estimated tax payment deadline arrived. If you make quarterly payments, you have until June 16 to pay and avoid possible underpayment penalties. If you don’t currently make estimated payments, should you? In general, individuals should make payments if they expect to owe $1,000 or more ($500 for corporations) when they file their […]

Will my summer job come with a tax obligation?

Teenagers with summer jobs may not think they’re being paid enough to have tax obligations. But anyone with self-employed income over $400 (earned, for example, by babysitting or mowing lawns) is required to file an income tax return and pay self-employment tax. If a teen has a job through an employer who withholds payroll taxes, […]

IRS audit rates

During his administration, former President Biden repeatedly promised higher IRS audit rates for wealthy, but not middle-income, taxpayers. Recently released IRS data suggests he kept his word. For tax returns filed in 2023 and audited in 2024, the audit rate was 0.8% for all taxpayers. But those making over $500,000 were audited at twice the […]

House Bill permanently increases Estate exemption threshold

The One, Big, Beautiful Bill, recently passed by the U.S. House, would provide wealthy families some certainty regarding their estates if it’s enacted. The current unified federal gift and estate tax exemption amount, adjusted annually for inflation, is set to expire after 2025. This year, it allows individuals to shelter $13.99 million from gift and […]

SALT limit a sticking point in the Senate

The U.S. House passed The One, Big, Beautiful Bill in May. Senate Republicans are currently debating their version of the tax and spending bill. With slim majorities in both the House and Senate, Republicans can’t afford to lose too many votes. So, what provisions of the bill are proving to be sticking points? One major […]