Proposed enhancment of The Employer-Provided Child Care Credit

One tax-related provision of the proposed One, Big, Beautiful Bill Act (OBBBA) that has slid under the radar is an enhancement of the Employer-Provided Child Care Credit. Currently, tax law provides eligible businesses a nonrefundable, annual tax credit of $150,000 on up to 25% of qualified child care expenses and 10% of qualified resource and […]

Tax tips before heading to the beach

Summer is in sight, and the April tax season is in the rearview mirror. But a few simple tax planning steps during the year can take the headache out of filing your next tax return. You might even end up with a better refund or lower tax bill. Before heading to the beach, take a […]

HSA Changes are in the pending Tax Bill

The fate of The One, Big, Beautiful Bill is still pending. If enacted, it would introduce several health care changes, including increased flexibility for Health Savings Accounts (HSAs). These accounts are used in conjunction with a high-deductible health plan. Under current rules, HSAs can’t be used for fitness expenses, but the bill would permit spending […]

Receive a tax notice?

If the IRS has a question about your tax return, hasn’t received a payment due or has made adjustments to something you’ve filed, it will notify you with a letter or notice sent via the USPS. The letter will provide instructions on how to respond, which might include sending copies of records the IRS requires. […]

How much will deficit rise under proposed tax bill?

Many economic analysts forecast that the U.S. House’s One, Big, Beautiful Bill would increase federal debt, but there’s disagreement over the amount. The Congressional Budget Office has projected that the bill would result in a $2.3 trillion deficit over 10 years. However, the Penn Wharton Budget Model (PWBM) puts the figure at $2.8 trillion, and […]

IRS publishes annual data book

The IRS has published its annual Data Book for fiscal year (FY) 2024. It provides a statistical overview of the tax agency’s operations. A few highlights: In FY 2024, for the first time, revenue collected exceeded $5 trillion ($5.1 trillion), an increase of almost 9% compared to FY 2023’s total of $4.7 trillion. Note: Revenues […]

Tariff plan faces setback in Court

President Trump’s trade war has suffered a major setback. The U.S. Court of International Trade ruled that the Trump administration overstepped its authority by invoking the International Emergency Economic Powers Act to impose tariffs on imports from U.S. trading partners. The court ordered a halt to most of Trump’s tariffs and further barred future modifications. […]

The difference between a fradulent return and a abusive return

What’s the difference between a fraudulent tax return and one that’s “potentially abusive”? The IRS states that the latter is a return that a taxpayer is required to file, which isn’t fraudulent but may contain inaccuracies that could lead to understated income or overstated credits. A fraudulent return is one in which a person attempts […]

A donation for charity for those that don’t itemize in Tax bill

One of the lesser-known benefits of The One, Big, Beautiful Bill making its way through Congress is that it gives a boost to some charitable donors. Currently, donations to charity are only deductible by taxpayers who itemize deductions. If enacted, the bill would add a provision that lets non-itemizers deduct up to $150 for single […]

Overseas filing deadline approaching

If you live and work abroad, you have until Monday, June 16, 2025, to file your 2024 federal income tax return and pay any tax due. June 16 is actually an extended filing date. U.S. citizens (including military members) and resident aliens living and working outside the U.S., automatically receive a two-month extension from the […]