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Professionals Column

New requirements for the child tax credit

The Child Tax Credit (CTC) has undergone changes for the 2025 tax year, primarily due to the passage of the One Big, Beautiful Bill Act. The maximum CTC amount has increased from $2,000 to $2,200 per qualifying child. The refundable portion, known...

The $1,000 ‘Trump Accounts’ for newborns, Part 2

“Trump Accounts” are a new tax-advantaged savings vehicle for children under 18. With strict investment and contribution rules, this government-funded pilot program provides $1,000 to eligible newborns’ accounts. Here are some highlights of this...

The $1,000 ‘Trump Accounts’ for newborns, Part 1

The federal government will make one-time contributions of $1,000 to private investment accounts, also known as “Trump Accounts,” for each newborn American baby born this year through 2028. The payments, part of the new tax law, are for U.S....

Qualifying for the new car loan interest deduction

According to the recently enacted “One Big Beautiful Bill Act,” for years 2025 through 2028, interest on new car loans for personal vehicles can be deducted from your taxable income, even if you don’t itemize your deductions. To take the...

New $6,000 senior deduction: who qualifies?

Effective for the 2025 tax year (and set to expire after 2028), the recent “One Big Beautiful Bill Act” (“OBBBA”) enacted a new $6,000 deduction for seniors aged 65 or older. This is in addition to the existing standard deduction and the extra...

Income tax credits that expire in 2025

Under the recently enacted “One Big, Beautiful, Bill Act,” (OBBBA) the federal tax credit for new and used electric vehicles (EVs) is set to expire. Do you want an electric vehicle? You must act by Sept. 30. This means that to be eligible for the...

When are IRA withdrawals penalty-free?

Many IRA owners are aware they can be hit hard with penalty fees if they withdraw IRA money early. You should make every effort to avoid taking money out of your retirement accounts early, especially if you are young. By withdrawing money, you are...

Beware of IRS tax scams

Tax scams are illegal and can lead to problems for taxpayers including significant penalties, interest and possible criminal prosecution. Beware of these common schemes: • Return-preparer fraud. Dishonest tax-return preparers can cause many...

Income-tax benefits for child care   

 If you paid someone to care for your child, spouse, or dependent (i.e., parent) this year, you may be able to claim the Child and Dependent Care Credit on your Federal income-tax return. Below are some things the IRS wants you to know about...

Money-saving tax tips for the self-employed

If you are in business for yourself, or carry on a trade or business as a sole proprietor or an independent contractor, you generally would consider yourself self-employed and you would file IRS Schedule C, Profit or Loss from Business, with your...

The home-office deduction: Do you qualify?

To take the deduction, the IRS requires the home-office to be your principal place of business and it must be used exclusively and on a regular basis. According to the S.B.A., just over half of the country’s small businesses are based in a home,...

A taxpayer's Bill of Rights

Every taxpayer has a set of fundamental rights. You should be aware of these rights when you interact with the Internal Revenue Service. There are 10 broad categories: 1. The Right to Be Informed.Taxpayers have the right to know what they need to...

Are you eligible for the saver’s tax credit?

Formerly called the Retirement Savings Contributions Credit, the Saver’s Credit gives a special tax break to low-to-moderate income workers who are saving for retirement. Contributions to a traditional or Roth IRA, 403(b), 457 and 401(k) plans are...

Charitable deductions: What are the limits?

Charitable contributions made to qualified organizations may help to reduce your taxable income and lower your tax bill. The IRS has put together the following guidelines to help ensure your contributions pay off on your tax return. A charitable...

Tax provisions in budget bill

On May 9, Governor Kathy Hochul signed New York’s budget bill for the 2026 fiscal year. The key tax provisions are below: • The budget enacts a one-time inflation refund check. Specifically, joint filers with income up to $150,000 will receive a...

Mortgage and home-equity interest changes in tax law

The Tax Cuts and Jobs Act (TCJA) imposed a lower dollar limit on mortgages qualifying for the home-mortgage-interest deduction. Beginning in 2018 and until this year, taxpayers may only deduct interest of $750,000 of qualified residence loans....

An overview of deductible taxes  

There are certain types of taxes that you can deduct on your tax return if you itemize on Form 1040, Schedule A. To be deductible on your tax return, a tax must be charged to you and you must have paid it during your tax year. But a word of...

Maximizing medical expense deductions

If you itemize your deductions on Form 1040, Schedule A, you may be able to deduct expenses you paid in 2024 for medical and dental care for yourself, your spouse, and your dependents. Here are some facts the IRS wants you to know about medical...

Your first job: tax tips for teens

As school winds down, many students will hit the job market for summer employment. The Internal Revenue Service reminds students that not all the money you earn may make it into your pocket. That’s because your employer must withhold taxes. Here...

What to do if you get an IRS notice

Each year, the Internal Revenue Service sends millions of letters and notices to taxpayers for a variety of reasons. Although some people may feel anxious when they receive one, many are easy to resolve. Here are items to know about IRS notices,...

Tax credit will help pay for day camp

Along with the lazy, hazy days of summer come some extra expenses, including summer day camp, nursery school and preschool. The IRS has some good news for parents: those added expenses may help you qualify for a tax credit. Sorry, overnight camp...

Tax tips for the newly married

Congratulations if you recently updated your status from single to married, but you should be aware that marriage also brings about some changes with your income taxes. Here are several tips for newlyweds from the IRS: • Notify the Social...

Don’t be scammed by fake IRS communications

The IRS receives thousands of reports each year from taxpayers who receive suspicious emails, phone calls, faxes or notices claiming to be from the Internal Revenue Service. Many of these scams fraudulently use the Internal Revenue Service name...

What to do if you get an IRS notice

Each year, the Internal Revenue Service sends millions of letters and notices to taxpayers for a variety of reasons. Although some people may feel anxious when they receive one, many are easy to resolve. Here are items to know about IRS notices,...

Be aware of IRS audit red flags

Many taxpayers fear an IRS audit. Although the IRS audit targets change with the times, below you’ll find some of the high-risk tax- audit areas that the IRS has examined in recent years: • Earned Income Tax Credit (EITC). The EITC is a tax...

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