With kids now back in college, the fact of higher educational costs is impossible to ignore.
As you or your child navigates campus, you are now in position to start navigating the possible tax implications of your new-found college expense.
Outlined here are three of the more popular ways to reduce your taxes in 2025 as a result of this educational expense burden.
As important tax records start filling mailboxes, how can you make sure your tax preparation goes smoothly and efficiently this year? Here are some tips.
Hackers and data thieves target personally identifiable information or (PII). They also know their best score can be had by filing information using your tax ID and stealing your withholdings before you are the wiser. But by working together, we can mutually reduce the risk of this happening to you. Here are some tips:
Your number one defense to becoming a victim is to be aware. So whenever you open an email, read a text, answer a phone, or go to a website, keep your awareness switch on high. This is especially true in this age of AI. Fake emails look more real than ever. Voice replication can duplicate a voice and texts come from valid looking vendors.
DO NOT send any tax records attached to an email. Only use safe, encrypted paths to do so or simply drop off the material in person. Copies of 1099s and W-2s are needed, but only if they are sent securely.
Your security can be broken down into these three categories:
Physical: Keep your data physically safe. Be sure your records are in locked places and your digital data on your computer is password protected AND encrypted. Destroy old documents, shred the paper ones, and keep backups of your data.
Technical: Keep your software up to date, including antivirus software and computer/phone operating systems. Use secure passwords and turn on multi-factor authentication whenever possible.
Administrative: Keep yourself up-to-date on the newest threats. When you receive breach notices, take security action. And monitor your accounts, especially financial ones.
If you have any concerns whatsoever, understand the IRS has an identity protection program that requires providing a unique ID when filing your tax return. The ID is required if you have had your tax information stolen, but its participation is otherwise voluntary. If you are in the program, understand your tax return CANNOT be filed without this security code.
If you are the least bit suspicious about a tax-related call or contact, reach out immediately. Help is but a call away.
As part of your planning for next year, now is the time to review funding your retirement accounts in 2026. Recent cost of living calculations means much higher contribution limits for next year. So plan now to take full advantage of this tax benefit. Here are annual contribution limits for the more popular programs:
Throughout the year, natural disasters can strike unexpectedly, from wildfires to hurricanes, and the aftermath often leaves communities in need of support. While the urge to help is strong, it’s important to ensure that the organizations you donate to are legitimate and not scams.
Additionally, while fewer taxpayers are itemizing deductions, those who do want to make sure their charitable contributions are legitimate for tax purposes. Here are some tips on how to research organizations before donating your funds, no matter the time of year.