The IRS is going paperless. This process began in the fall of 2025 and continues as the federal government seeks to protect against fraud and improper payments. The move also seeks to increase efficiency and to reduce costs. For the coming tax season, the biggest difference will be the phasing out of paper refund checks.
Category: Federal Income Tax
Going Digital With Social Security
Want to view your updated benefit account sooner next year? Opt-in to digital notices at https://secure.ssa.gov/RIL/SiView.action. Don’t have an online account yet? It’s simple and the website will walk you through the steps. Have questions or need help with your taxes? Contact us today, debra@nw-cpa.com.
Men’s Underwear is a Tell-Tale Sign of a Recession?
According to The Atlantic Daily, mens underwear may be intimately connected with recessions. How, you ask? Alan Greenspan, Fed chairman once suggested that sales of men’s underwear is, “inversely proportional to economic anxiety.” His comment has been supported by other product sales when money gets tight, such as champagne, cigarettes, and snacks. On the flip side, demand for lipstick, high heels, scary movies, and used clothing often increase during these periods. For more and to watch a video about this topic, visit: Clues That a Recession Is Coming
Understanding Adult Dependents
Dependents fall into two categories, a qualifying child or a qualifying relative. In order to claim an adult dependent, they must pass these seven tests:
Dependent Taxpayer Test
Joint Return Test
Citizen or Resident Test
Qualifying Child Test
Member of Household or Relationship
Gross Income Test
Support Test
To find out if you can cut your tax bill by claiming an adult dependent, visit the AARP article, 6 Tax Breaks If You Have an Adult Dependent.
What The IRS Had Wrong
Did you know that if the IRS has your birthday incorrect and you discover this fact using an online tax preparation service, that when you call to try and get it fixed, the IRS cannot actually tell you what information they have on file? It requires an in-person meeting and then a visit to the Social Security office. Heather Schewdel for Slate learned this the year she decided to file her taxes all by herself, without the help of an accountant. Read more about her saga here and may we suggest that it’s always a good idea to use an accountant. Birthday Girl
Donation Subsidies
Should those who make more money be given a larger tax deduction on their charitable gifts? Binyamin Applebaum for the New York Times thinks not and shares his reasoning and ways to improve the philanthropic system in the United States in his article, The Really Unfair Thing About the Met Gala. Applebaum points to the subsidies that are assigned to financial gifts by the US government based on the organization and the giver. Those in higher tax brackets receive a much larger tax break and tend to focus their giving on cultural sites and universities.
But why should federal tax policy privilege the preservation of old dresses or the construction of new dormitories at Harvard over the needs of parent-teacher associations or community groups that depend on the support of residents in less affluent neighborhoods?
Applebaum goes on to suggest ways that the US system could be balanced through a matching gift system or by emulating Britain’s Gift Aid Program or Canada’s tax credit for donors.
Amended Tax Returns
Do you have questions about when to file an amended tax return? Did you know that certain filing errors will be corrected automatically by the IRS? If you need more information about when amended returns are required, visit this page. More informational topics are available at the bottom to help guide you through the process. Topic no. 308, Amended returns
Preparing to File Your Taxes
What are your tax prep best practices?
With the start of a new year, many begin thinking about filing taxes. The IRS offers simple tips and best practices for getting all of your paperwork in order to make the process go smoothly. This article is especially helpful for those who worry they may not be paying enough and want to take advantage of available deductibles. Read more here: Be ready to file taxes next year
New Ways To Save
As we enter the season of gift giving, it’s time to watch budgets even closer. Explore these sites recommended by ThePennyHoarder.com, The Dumbest Things We Keep Spending Too Much Money On, to save on your monthly bills and other needed household items such as:
Car Insurance
Amazon
Credit Card Interest
High Speed Internet
Movies and More
Leave yourself more money for the fun things in life during the holidays.
Commission Rules Have Changed
If you are entering the market for a home, some rules about realtor commissions have changed. Now sellers and buyers will both be responsible for these payments after the decision in a case brought against the National Association of Realtors. They will no longer be able to mandate the seller’s agent make an offer of monies to the buyer’s agent, or set any kind of industrywide standard commissions. Debra Kamin for the New York Times offers best practices for buyers and sellers as these new rules come into play. Buying or Selling a Home? The Rules Have Changed.