Retirement Mistakes to Avoid

You’ve enjoyed the celebrations and a few days of “sleeping-in,” and now you’re ready to start your retired life. Evan T. Beach from Kipplinger recommends these easy steps to help start your retirement in the right direction and keep it on track for years to come.

Avoid purchasing big ticket items or taking extravagant trips. See if you can actually plan these investments while you are still working in order to preserve retirement funds. It will also keep you from tapping into social security and retirement funds too quickly which can help with your tax rates later in life. Be sure to work with your financial planner to adjust your investment strategy, be careful not to lose touch with former co-workers and other acquaintances, and create a daily schedule for yourself. All of these things are an important part of maintaining an active life in retirement.
Read more here: Five Mistakes to Avoid in Your First Year of Retirement

Newly Wed Tax Implications

Getting married this wedding season? Be prepared from a tax standpoint and know what paperwork you will need to complete within ten days of your nuptials. Learn this and more at the IRS website where they have all kinds of tax information and a great FAQ for just about any question. Still have more tax questions? Contact Debra Newby Watkins, CPA, 512 900-8952.

Tax checklist for newlyweds

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.

How Do Short-Term Rentals Operate in Your City?

The city of Austin decided that a cut from all short term rentals should be paid to the city. This is not a new trend and many other cities around the U.S. charge the same kinds of fees and taxes. It pays to look more closely into the cities you visit when deciding if you’ll be staying in a short term rental (AirBnB, VRBO) or hotel. Some of the city costs may actually affect your decision. For more resources on Austin and the fees they charge, visit the sites below.

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

Paying in Cash?

How would you feel if your service employees asked to be paid in cash? Would you suspect that they were trying to shave a little off of their taxes? Is it your job to “police” the people you employee for various jobs around your home? Many couples face this dilemma and may not be in agreement with each other. The Ethicist addresses this question and details why it is best to report all income when filing taxes, in his April 9, 2025 response, Our Gardener Wants to Avoid Taxes. Should We Pay Him in Cash?

1099-Ks for Online Sales and Money Aps

If you have sold items online this year and/or received money through an Ap such as Venmo or Cash Ap, you may receive a 1099-K form. The federal threshold for these types of sales in tax year 2024 is $5000 and will reduce each year until it reaches $600 in 2026. The income that these forms represent may be from online clothing sales, tickets sales, or even gig jobs. The IRS is making an effort to collect taxes from workers or online businesses who do not traditionally report their income. This article stresses that personal payments between friends and reimbursements are not taxable. If you feel you’ve received a 1099-K in error, there is a place on your 2024 tax forms to report the money as not income. Read more here: Did You Sell Concert Tickets or Clothes? You May Owe Taxes.

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