Draft Bill released

The U.S. House tax-writing committee released a draft bill on May 12 that increases the state and local tax (SALT) cap. Currently, there’s a $10,000 limit on the SALT deduction. The proposed bill raises it to $30,000 for taxpayers with incomes of $400,000 or less. Also included in the draft bill: increasing the Child Tax […]

State Implications of the One, Big, Beautiful Bill

State Implications of the One, Big, Beautiful Bill https://bit.ly/43QDG1Z

Trump’s “one big, beautiful bill”

House Republicans continue to hash out the details of President Trump’s “one big, beautiful bill.” The bill Republicans hope to pass by Memorial Day would extend many provisions in the Tax Cuts and Jobs Act. It would also contain border, energy and defense policies and create new tax breaks promised by Trump on the campaign […]

A Breakthrough is US-China tariff dispute

There’s been a breakthrough in the U.S.-China tariff dispute. The two countries have announced a temporary, substantial reduction of reciprocal tariffs. The new measure will be in effect for 90 days. Specifically, the U.S. will cut tariffs on Chinese imports from 145% to 30% and China will ease tariffs on U.S. imports from 125% to […]

EPA plans to sunset Energy Star Program

After 33 years, the U.S. Environmental Protection Agency (EPA) plans to sunset the Energy Star program. This public/private partnership certifies energy-efficient appliances and other products that meet certain federal government standards. The popular program has provided tax breaks, including federal tax credits, to eligible taxpayers and helped lower consumers’ utility bills. According to nonpartisan analysts, […]

Who is audited and why are they audited part of questions to Treasury Secretary

In a recent U.S. House Appropriations Financial Services and General Government Subcommittee hearing, Treasury Secretary Scott Bessent discussed several topics, including how the IRS would ensure the equitable distribution of enforcement actions. Bessent said the agency was reviewing current processes, including “who is audited and why they are audited.” Committee members, including some Republicans, expressed […]

Owing a home can be beneficial at tax time

Purchasing a home is the most significant investment most people will make. Owning your home comes with valuable tax advantages that can reduce your annual tax bill. One of the primary benefits is the mortgage interest deduction, which allows homeowners to deduct the interest paid on mortgage loans, up to certain limits. This can be […]

IRS workforce reduced, Will AI fill the gap?

A new report from the Treasury Inspector General for Tax Administration (https://bit.ly/4m4QAS9 ) states that between Jan. and March 2025, the overall IRS workforce decreased by 11%. More specifically, 31% of IRS employees fired were revenue agents and 5% worked in information technology (IT). Treasury Secretary Scott Bessent told a House subcommittee that the current […]

Offer in Compromise

If taxpayers can’t pay the tax they owe in full, one option is to seek an offer in compromise (OIC) from the IRS. That’s a way to potentially settle the debt for less than you owe. The IRS states it will generally accept a reasonable offer. Be aware, the tax agency will first do a […]

Summer Camp expenses may count toward Child Care Credit

Most kids will soon be out of school for the summer and many will head to summer camp. Sending your child to a summer day camp while you work may count as an expense toward the federal Child and Dependent Care Credit. Under current law, this credit ranges in value from 20% to 35% of […]