Don’t Let Poor Records Cost You a Tax Deduction

If you’ve made or plan to make charitable donations this year, keeping complete records can help support a deduction on your federal tax return. Beginning with the 2026 tax year, taxpayers who claim the standard deduction rather than itemizing can deduct up to $1,000 of cash contributions to qualified charities. Taxpayers who want to deduct […]

IRS announces ACA adjustments for 2027

The IRS has announced Affordable Care Act (ACA) indexing adjustments for 2027. For plan years beginning in 2027, the required contribution percentage used to determine whether employer-sponsored health coverage is “affordable” under the ACA will be 10.22% (up from 9.96% for 2026). If the percentage of household income that certain employees must contribute to pay […]

Divorce and IRAs: Avoid Costly Tax Mistakes

Divorce can have important IRA tax consequences. If you’re divorced or legally separated by year end, you generally can’t deduct contributions you make to your former spouse’s traditional IRA. Taxable alimony and separate maintenance payments typically count as compensation for IRA contribution limit purposes. To divide IRA assets tax-free, the transfer generally must be made […]

How to Avoid the foreign transfer tax

If you’re sending money abroad, beware of a possible 1% excise tax. Effective Jan. 1, 2026, the tax generally applies to transfers of cash, money orders or cashier’s checks from U.S. senders to foreign recipients via certain remittance transfer providers such as Western Union and MoneyGram. But transfers made via credit or debit card, bank […]

Is That Business Expense Really Tax Deductible?

How do you know if a business expense is tax deductible? The tax code says you can write off “ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” An ordinary expense is common or customary in your industry. And a necessary expense is one that’s helpful […]

A Simple Family Loan Can Become a Taxable Gift

Making a personal loan to a family member or friend can create unexpected tax issues. If the loan carries little or no interest, the IRS might treat all or part of it as a taxable gift under the below-market loan rules. To pass muster with the IRS, your loan should be backed by a written […]

Do you have an IP PIN?

The IRS is reminding taxpayers that an effective way to combat tax-related identity theft is to sign up to receive an Identity Protection Personal Identification Number (IP PIN). It’s a six-digit number, and obtaining one is voluntary. An IP PIN is valid for one year and automatically replaced after expiration (typically in mid-to-late January). In […]

Is a self-directed IRA right for you?

Looking beyond stocks and mutual funds for your retirement savings? A self-directed traditional or Roth IRA offers more flexibility by allowing investments in assets such as real estate, closely held stock and certain precious metals. But that flexibility comes with increased risk, including complex tax rules. Prohibited transactions involving you, certain family members or other […]

Tax liens are on the rise

IRS tax liens are on the rise. The agency filed more than 214,000 federal tax lien notices in fiscal year 2025, up about 9% from the prior year and 36% from 2022. This increase reflects a return to more typical collection activity after pandemic-era enforcement slowdowns. A federal tax lien is the government’s legal claim […]

Is your Scholarship taxable?

Scholarship awards can provide significant financial relief to families of college-bound students. Most, but not all, of the awards are tax-free. To qualify for tax-free status, scholarships must meet three criteria: 1) The student must be a degree candidate at an eligible educational institution, 2) the award must be used to pay for tuition and […]