How many times have you seen this legal disclaimer?
Unfortunately, all too often taxpayers do not follow this advice and then must pay the price with an unnecessarily high tax bill.
Here are some of the most common situations that can save you money by seeking advice before you act:
If you’re age 70½ or older, you can transfer money directly from an IRA to qualifying charities. Those transfers are Qualified Charitable Distributions (QCDs). Thanks to the One Big Beautiful Bill Act (OBBBA), QCDs now protect even more tax benefits by keeping AGI/MAGI low while still satisfying charitable goals.
Below is the upgraded, precise version you can publish.
Missed your quarterly estimates this year?
You’re not alone.
The IRS underpayment charge is nondeductible, compounds daily, and snowballs fast. Writing a big check today will stop new penalty accrual from this point forward, but it won’t erase the penalties tied to the quarters you already missed.
There is, however, a lawful way to make it as if you paid each quarter on time. It relies on how the tax code treats withholding from retirement distributions.
Tax withheld from certain retirement-plan distributions is treated as if it were paid evenly throughout the tax year, regardless of when you actually withhold. That timing rule lets you retro-allocate withholding to April/June/September/January and eliminate underpayment penalties for earlier quarters.
You can use that rule in two primary ways.
The IRS doesn’t care how exciting your rodeo belt buckle is… they care whether you’re engaged in the activity with the actual intent to make a profit.
If it’s a business, losses are deductible.
If it’s a hobby, deductions are limited and can’t create a net loss against other income.
Most of us go through life without being concerned with, or ever checking on, our Social Security records. We assume the money deducted each payday and an equal amount paid in by our employer is applied properly to this valuable retirement benefit.
Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.
Source: IRS Publication 561
This definition is the standard the IRS uses to determine if an item sold or donated by you is valued properly for income tax purposes. It's also a definition that's open to interpretation. If the IRS decides your FMV opinion is incorrect, you're not only subject to more taxes, but also penalties to boot.
Here are some tips to help defend your FMV in case of an audit.
In late September, the Treasury Department presented a list of preliminarily-approved occupations that will qualify for the new federal tax-free tip income provision on 2025 tax returns. Here is what you need to know.
As part of the One Big Beautiful Bill Act (OBBBA), qualifying tip income will not be subject to federal income tax from 2025 through 2028. The benefit is limited to $25,000. There is an income limit of $150,000 for single filers and $300,000 for joint filers. (This income limit is modified adjusted gross income, including the tips.) The deduction amount is reduced (but not lower than zero) by $100 for each $1,000 in excess of these amounts.
At the end of each year there are a number of things to consider that may have a positive impact on your tax obligation. Here is a list of ideas that may be worth a quick review while there is still time. And especially this year with recent tax law changes.
With the passage of the One Big Beautiful Bill Act (OBBB Act) many who took a standard deduction may now need to consider a potential change to itemizing. If this could be you, it is better to know this now, when you can still take tax advantage of your situation.
In 2024 you could only take a maximum of $10,000 as an itemized deduction on Schedule A for taxes of any kind. To make matters worse, this limit was the same for single filers and married filing joint taxpayers, making it one of the most severe marriage penalties in the tax code. So many taxpayers who typically itemized deductions, often found themselves taking the standard deduction.
But effective for tax years 2025 thru 2029, this limit of tax deductions is increasing to $40,000. This will result in many individuals once again itemizing their deductions.
Big changes are coming to clean energy incentives — and sooner than many realize. A wide range of popular tax credits for electric vehicles, home energy upgrades, solar installations, commercial clean fleets, and even new energy-efficient construction are all set to phase out starting in late 2025. If you’ve been considering an EV purchase, home solar, or energy-efficient improvements, the window to benefit from these incentives is closing fast. Dive into our full breakdown to see which credits are disappearing, when they end, and how to make the most of them before they’re gone.
As you or your family members approach retirement years, it's important to have a basic understanding of the IRS gift giving rules. With this understanding, there are opportunities to leverage this tax law without creating a tax problem.
As required by law, in every Form 1040 instruction booklet there's a section that shows where our federal government gets its money and where it is spent. As taxpayers it makes sense to know this information. Here is the data for the government's fiscal year ending September 30, 2023, as reported by the IRS in the 2024 instruction booklet for Form 1040:
The One Big, Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, and with it comes many new tax provisions that may directly affect you.
There are many tax provisions contained in OBBBA beyond the ones we have highlighted here.
We often receive questions about record retention, so let's take a moment to clarify what you need to know.
Overall, the Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This 'three-year law' leads many to believe that this 3-year period is set in stone and all-inclusive, but it is NOT.
Retirees and beneficiaries will continue to receive their monthly checks. Administrative reshuffling is underway. Some Social Security offices are being consolidated or reorganized, but this does not affect the benefit amounts people receive. The Trust Fund challenge remains. Projections suggest that around 2033–2034, the trust fund could be depleted if Congress takes no action. If that happened, incoming payroll taxes would still cover about 75–80% of benefits. But historically, Congress has stepped in before any reductions took effect.
OBBBA adds a temporary, targeted deduction for tips. It’s not a universal “no tax on tips.” Many tipped amounts are still taxable, and payroll taxes still apply.
Here’s the clean, CFO-level breakdown you can put in front of clients.
California has expanded its retirement mandate to the smallest employers. If you have even one W-2 employee (other than the owner or owner’s spouse) and do not sponsor a qualified plan, you must either (a) adopt a private plan (e.g., 401(k), SIMPLE IRA) or (b) register for CalSavers by December 31, 2025.
Penalties for non-compliance: $250 per eligible employee if you remain non-compliant 90+ days after notice, plus an additional $500 per eligible employee at 180+ days. Those add up quickly.
The Social Security Administration announced a 2.8% boost to monthly Social Security and Supplemental Security Income (SSI) benefits for 2026, another rate drop versus last year's increase of 3.2%. The increase is based on the rise in the Consumer Price Index over the past 12 months ending in September 2025.
For those contributing to Social Security through wages, the potential maximum income subject to Social Security taxes is increasing to $184,500. This represents a 4.8% increase in your Social Security taxes. What's of interest here is the continued practice of raising the income subject to Social Security well beyond the annual Consumer Price Index. Here's a recap of the key dollar amounts:
The One Big Beautiful Bill Act (OBBBA) permanently extended a harsh TCJA rule: no deduction for “miscellaneous itemized deductions,” including hobby expenses. That’s brutal for dog breeders, because the IRS often labels breeding as a hobby. Translation: income gets taxed, expenses don’t. Hobby income is reported separately on Schedule 1, but most related costs are simply nondeductible.
The One Big Beautiful Bill Act (OBBBA) didn’t just keep Opportunity Zones alive. It made the program permanent, tightened zone eligibility, and changes investor incentives starting January 1, 2027. Below is the upgraded, client-ready explainer with a now-vs-later comparison, a timeline, and the fine print sophisticated readers expect.
