Change made to deduct certain disaster losses

There’s good news for taxpayers who suffered casualty losses from disasters during earlier periods. Typically, losses can only be claimed when itemizing deductions on a tax return. However, the Federal Disaster Tax Act, signed by then-President Biden on Dec. 12, 2024, changed that. It allows eligible taxpayers to deduct personal casualty losses without itemizing if […]

Did you receive a 1099-K?

Did you get a Form 1099-K (Payment Card and Third Party Network Transactions) in the mail? You should have received one from each platform on which you sold more than $5,000 in goods or services, regardless of the number of transactions, in 2024. Form 1099-K is new for many taxpayers because the previous threshold for […]

DOGE temporarily stopped by courts

A federal judge in New York state has temporarily stopped Elon Musk and the Department of Government Efficiency (DOGE) from accessing the U.S. Treasury Department’s payment system. Attorneys general (AGs) from 19 states have sued the Trump administration, alleging that it’s violating the Administrative Procedure Act. The AGs say DOGE associates don’t have the legal […]

Steel and Aluminum Tariffs

President Trump has signed an executive order that will substantially increase tariffs on imported steel and aluminum. The increase is a flat 25%. The president said the tariffs will help struggling U.S. industries. This latest round of tariffs is an increase over the 10% tariffs on steel and aluminum Trump enacted during his first term […]

Legislation to extend tax cuts

Congressional Republicans continue to work toward legislation to extend and expand provisions of the Tax Cuts and Jobs Act as well as incorporate some of President Trump’s tax-related campaign promises. House Republicans had planned to unveil a single package of tax and other provisions by this point but the party’s various factions haven’t yet come […]

Work Opportunity Tax Credit can benefit your business

As of January 2025, the unemployment rate was reported to be 4%. Employers facing hiring challenges may benefit from a valuable one-time federal tax credit available through 2025. The Work Opportunity Tax Credit (WOTC) incentivizes businesses to hire individuals from specific groups often facing employment barriers. These include veterans, recipients of specific aid programs, ex-felons, […]

An IP PIN can protect your identity

Before you file your tax return, you may want to take a vital step to help protect yourself and your assets from identity theft. The IRS urges taxpayers to get an Identity Protection Personal Identification Number (IP PIN). An IP PIN is a six-digit number and obtaining it is voluntary. It’s valid for one year […]

Should I file a joint return with my spouse?

Most married couples file joint income tax returns. But in some cases, it may be beneficial to file separate returns. If, for example, one spouse has substantial unreimbursed medical expenses and relatively low income, filing separately could allow the spouse to claim the medical expense deduction. Or if a spouse has qualified business income (QBI) […]

Federal Debt is growing. How does this impact extension of Trump Tax Cuts?

At $36 trillion and growing, the U.S. federal debt could prevent the extension of all Tax Cuts and Jobs Act provisions. They’re currently due to expire at the end of 2025. The plan that extends tax breaks and funds President Trump’s other priorities is estimated by the nonpartisan Committee for a Responsible Federal Budget to […]

Earned Income Tax Credit hits 50th Anniversary

The Earned Income Tax Credit (EITC) was signed into law in 1975, and the IRS is celebrating its 50th anniversary. According to the tax agency, “through numerous legislative changes, the tax break has helped encourage work and lift many financially challenged families out of poverty.” The IRS reports that as of Dec. 2024, approximately 23 […]