PazTax - Personal and Professional US tax service

02/05/2026

Create an IRS Individual Online Account today for security and convenience

https://www.irs.gov/payments/online-account-for-individuals

The Internal Revenue Service encourages all taxpayers to create an IRS Individual Online Account to access their tax account information securely online and to help protect against identity theft and fraud.

The IRS Individual Online Account is available to anyone who can verify their identity.

With the same convenience as online banking, taxpayers can use the IRS Individual Online Account to:

View key tax return information, such as their adjusted gross income.
Request an identity protection PIN and access it throughout the year.
Check the status of their refund.
Confirm the status of their amended return.
Get account transcripts, including wage and income records.
Approve power of attorney and tax information authorization requests.
Edit language preferences and request alternative media.
Receive and view over 200 IRS digital notices.
Make and cancel payments.
Set up or modify payment plans and check their balance.
Access tax documents online

In early 2025, the IRS expanded the IRS Individual Online Account to allow taxpayers to view and download certain tax documents, including:

Form W-2, Wage and Tax Statement.
Form 1095-A, Health Insurance Marketplace Statement.
Form 1099-NEC, Nonemployee Compensation.
Form 1099-DIV, Dividends and Distributions.
Form 1099-INT, Interest Income.
Form 1099-MISC, Miscellaneous Information.
A full list of information return documents is available on IRS.gov.

Information return documents are filed and reported by employers, financial institutions, government agencies, and other payers to both the payees and the IRS. These documents provide information that can help taxpayers file their returns. The information is available for tax years 2023, 2024, and 2025 and can be found under the Records and Status tab in the taxpayer’s IRS Individual Online Account.

For more information, visit IRS Online Account for Individuals

https://www.irs.gov/payments/online-account-for-individuals

Sign in or create an online account. Review the amount you owe, balance for each tax year, payment history, tax records and more.

02/05/2026

https://www.irs.gov/newsroom/tax-credits-for-individuals

Tax Tip 2026-10, Feb. 5, 2026 — A tax credit reduces the amount a person owes in income taxes dollar-for-dollar.

01/09/2026

Trump Accounts for Kids – Quick Guide

✅ Kids born 2025–2028: Eligible for a $1,000 government seed deposit in a new tax-advantaged Trump Account. Parents can also contribute up to $5,000/year.
✅ Kids born before 2025: Parents can still open Trump Accounts and contribute up to the annual limit, but no $1,000 federal seed money (some may get small philanthropic contributions, e.g., $250 from Dell donation programs).

📄 How to set up:
1. File IRS Form 4547 (can be included with your 2025 tax return)
2. Wait for account activation (accounts go live around July 2026)
3. Start contributing and let funds grow tax-deferred until age 18

01/09/2026

📢 NC TAX ALERT: Big Federal Changes vs. Our State Reality 📢

If you’re a senior, parent, tipped worker, business owner, or recently bought a car or equipment, there’s a growing gap between new federal tax law (“The One Big Beautiful Bill”) and our state’s tax rules.

Right now, our state is still using older tax laws. If we file your NC return today, you cannot claim many of the new federal benefits on your state return.

Here’s where the gaps are 👇

👵 SENIORS (65+): New $6,000 Federal Deduction
The federal government now allows an extra $6,000 deduction per senior ($12,000 for couples).
Our state gap: NC does not recognize this yet, so the deduction is added back and taxed at the state level.

👶 PARENTS: Child Tax Credit Update Under Consideration
Federally the Child Tax Credit increased (up to about $2,200 per child).
Our state gap: NC hasn’t adopted this yet — but legislation has been introduced that would reenact/expand a state Child Tax Credit tied to the federal credit. (It’s currently under consideration in the legislature.) 

💸 SERVICE WORKERS: “No Tax on Tips” (Federal)
The IRS allows a federal deduction for qualified tips (up to $25,000).
Our state gap: Our state still taxes 100% of tips, even when they’re deducted federally.

🚗 CAR OWNERS: Loan Interest Deduction
Federal law allows a deduction of up to $10,000 for interest on loans for new, U.S.-assembled vehicles.
Our state gap: Our state does not allow this deduction.

📉 STANDARD DEDUCTION GAP
Federal standard deduction for married couples is $31,500.
Our state gap: NC is capped at $25,500, meaning more income is taxed at the state level.

🏢 BUSINESS OWNERS: 100% BONUS DEPRECIATION
Federal law allows 100% immediate expensing for qualifying assets, including 5-, 7-, 10-, and 15-year property.
Our state gap: NC requires a large add-back and forces the deduction to be spread over 5 years, even for 7-, 10-, or 15-year assets, creating a potentially big upfront state tax bill.

🌪️ DISASTER RELIEF
Federal storm-related tax relief has not yet been fully adopted by our state.

⸻

🧠 THE STRATEGY: WHY AN EXTENSION MAKES SENSE

Our state legislature meets this spring to decide whether to conform to these federal changes — including a possible state Child Tax Credit update.
Filing now locks in older, more expensive rules. Filing an extension gives us a chance to benefit from changes that may get adopted — potentially saving hundreds or thousands without needing an amended return later.

01/04/2026

🏢 Non-U.S. Investors: What You Need to Know About Form 1040-NR & U.S. Real Estate

If you are not a U.S. citizen or green card holder and you invest in U.S. real estate — either directly or through a partnership or LLC — you may be required to file Form 1040-NR.

Here’s what matters most:

✅ U.S. rental income is taxable
Rental income from U.S. property is considered U.S.-source income and must be reported on Form 1040-NR, even if the income is paid to a foreign bank account.

✅ Direct ownership vs. partnership ownership
• Direct ownership: You report rental income and expenses directly on your 1040-NR.
• Partnership or LLC ownership: You will receive a Schedule K-1, and your share of income must be reported on your 1040-NR. Partnerships are also required to withhold U.S. tax on foreign partners, even if the property operates at a loss.

✅ Required tax withholding for foreign investors
• Rental income may be subject to U.S. tax withholding during the year
• Partnerships must withhold tax on income allocated to foreign partners
These withholdings are credited on your tax return and may result in a refund if too much tax was paid.

✅ Selling U.S. real estate (important)
When a foreign owner sells U.S. real estate, the buyer is generally required to withhold 15% of the gross sales price at closing. This is not the final tax — it is a prepayment. A tax return must be filed to calculate the actual tax owed and request a refund if applicable.

📌 Investing in U.S. real estate or already receiving rental income?
👉 Visit paztax.com

PazTax | U.S. Tax Reporting for Foreign Real Estate Investors

Tax Preparation - We provide tailored solutions for your unique needs, always staying up-to-date with the latest US tax reporting...

01/04/2026

🌍 U.S. Expats: What You Need to Know About Your 2025 Form 1040

Living outside the U.S. does not remove your U.S. tax filing obligations. If you are a U.S. citizen or green card holder, you must still file Form 1040 and report worldwide income.

Here are the key items for the 2025 tax year:

✅ Worldwide income must be reported
This includes foreign salary, self-employment income, pensions, rental income, and investments — even if the income was already taxed abroad.

✅ Foreign Earned Income Exclusion (FEIE)
If you qualify, you may exclude up to approximately $130,000 per person of foreign earned income from U.S. tax, based on residency or physical presence rules.

✅ Foreign Tax Credit
Taxes paid to another country may be used as a credit to reduce or eliminate U.S. tax on the same income, helping prevent double taxation.

✅ Standard deduction still applies
Expats can still claim the standard deduction (about $15,000 for single filers / $30,000 for married filing jointly), along with other eligible deductions and credits.

✅ Foreign bank account reporting (FBAR)
If the total value of all foreign bank and financial accounts exceeded $10,000 at any time during the year, you must file an FBAR.
This is a reporting requirement only, but penalties for not filing can be severe — even if no tax is owed.

⚠️ PFIC warning for foreign investments
Many foreign mutual funds, ETFs, and investment products are considered PFICs (Passive Foreign Investment Companies) under U.S. tax law.
PFICs can result in very high U.S. taxes and complex reporting, even when there is little or no actual income. Many expats are unaware they own PFICs through foreign brokerage accounts or retirement plans.

⏰ Extended filing deadline
U.S. taxpayers living abroad automatically receive an extension to June 15, but interest on any tax due still begins in April.

📌 Need help with expat taxes or prior-year filings?
👉 Visit paztax.com

PazTax | U.S. Expat Tax Preparation & Planning

Tax Preparation - We provide tailored solutions for your unique needs, always staying up-to-date with the latest US tax reporting...

01/04/2026

📣 2025 Tax Updates – What You Need to Know (Form 1040)

The 2025 tax year includes several important changes that may lower your taxes or increase your refund:

✅ Higher standard deduction
For 2025, the standard deduction increased to approximately:
• $15,000 for Single filers
• $30,000 for Married Filing Jointly
This reduces the amount of income that is taxed before any credits are applied.

✅ New deductions available even if you don’t itemize
Some taxpayers may qualify for additional deductions on top of the standard deduction, including:
• Age 65 or older: an extra deduction of up to $6,000 per person
• Tip income: up to $25,000 of qualifying tips may be deducted
• Overtime pay: certain overtime earnings may be deducted, up to annual limits
• Personal car loan interest: interest paid on a qualifying personal vehicle loan may be deductible
Income limits and documentation requirements apply.

✅ Child Tax Credit increase
The Child Tax Credit increased to $2,200 per qualifying child, which can directly reduce the tax you owe or increase your refund.

✅ Higher deduction for state and local taxes paid
Taxpayers can now deduct more of the state income taxes and property taxes they paid during the year:
• Up to $40,000 for Married Filing Jointly
• Up to $20,000 for Single or Married Filing Separately

✅ New IRS reporting requirements
Some taxpayers may receive new tax forms related to cryptocurrency transactions or interest paid on vehicle loans. These do not always mean more tax, but they must be reported correctly.

💡 Bottom line:
2025 includes higher deductions and credits, but the rules are specific. Proper planning and accurate reporting can make a real difference.

📌 Questions or planning ahead?
👉 Visit paztax.com

PazTax | Professional Tax Planning & Preparation

Tax Preparation - We provide tailored solutions for your unique needs, always staying up-to-date with the latest US tax reporting...

12/06/2025

https://paztax.com/seven-tax-moves-to-make-before-2025-ends-year-end-tax-planning/

Tax Planning 2025, Year-end tax planning 2025

09/30/2025

IRS announces new relief for eligible taxpayers affected by ongoing events in Israel: due dates for eligible returns and payments may be postponed to Sept. 30, 2026; additional relief may be available

IR-2025-97, Sept. 30, 2025

WASHINGTON — The Internal Revenue Service announced today that due to the ongoing conflict in Israel, the agency is providing additional tax relief to affected individuals and businesses, postponing until Sept. 30, 2026, a wide range of deadlines for filing federal returns, making tax payments and performing other time-sensitive tax-related actions.

Notice 2025-53 posted today on IRS.gov, covers taxpayers affected by terroristic action in the State of Israel throughout 2024 and 2025. Today’s guidance follows up on prior guidance. Notice 2023-71 originally provided relief to taxpayers affected by the Oct. 7, 2023 attacks in Israel, and Notice 2024-72 provided relief to taxpayers affected by terroristic action in Israel throughout 2023 and 2024.

Notice 2025-53 postpones various tax filing and payment deadlines that occurred or will occur during the period from Sept. 30, 2025, through Sept. 30, 2026. Affected individuals and businesses in Israel, the West Bank, and Gaza have until Sept. 30, 2026, to file returns and pay any taxes that are due during this period. In Notice 2023-71, Notice 2024-72 and Notice 2025-53, the IRS is providing separate but overlapping relief to taxpayers who, due the terroristic action in Israel, may be unable to meet a tax-filing or tax-payment obligation, or may be unable to perform other time-sensitive tax-related actions.

As a result, for taxpayers eligible for relief under each notice, today’s notice (along with Notice 2023-71 and Notice 2024-72), postpones various tax filing and payment deadlines that occurred or will occur during the period from Oct. 7, 2023, through Sept. 30, 2026. See Notice 2023-71, Notice 2024-72 and Notice 2025-53 for additional relief provided, who qualifies for relief, and when taxpayers qualify for the relief.

The IRS automatically identifies taxpayers whose principal residence or principal place of business is located in the covered area based on previously filed returns and applies relief.

Other eligible taxpayers, or their representatives, whose filing address is outside the covered area can obtain relief by calling the IRS disaster hotline at 866-562-5227 and identify the date they qualified for relief. Alternatively, international callers may call 267-941-1000

Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

08/12/2025

# # 🚀 Major Business Tax Changes Are Here — With Practical Examples! 🚀

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, bringing *sweeping updates* to business taxation. Here are the top changes every business owner should know—**now with real-world examples**:

***

# # # 1. **Permanent QBI Deduction**

- The popular **20% Qualified Business Income (QBI) deduction** for pass-through businesses is *now permanent*—so you can rely on it for years to come!
- *Small businesses benefit*: Starting 2026, if your active QBI is at least $1,000, you’ll automatically receive a **$400 minimum deduction**.
- **Higher phase-in thresholds**: $75,000 ($150,000 joint), indexed for inflation.
- **Example:**
- *Sam owns a woodworking shop and earns $2,000 in QBI. Under the new law, Sam gets a $400 deduction even if her profits are modest.*
- For larger businesses: *If a partnership earns $100,000 in QBI, the owners would get a $20,000 deduction—subject to phase-in rules for high income*

***

# # # 2. **100% Bonus Depreciation Is Back — Forever!**

- Immediate full deduction for eligible equipment, machinery, etc. placed in service after Jan. 19, 2025.
- Includes special rules for certain manufacturing and production property.
- **Example:**
- *Cooper Co. buys a $500,000 machine on Feb. 1, 2025. Cooper Co. deducts the **entire $500,000** in 2025—no waiting years to write off the investment!*

***

# # # 3. **Section 179 Expensing Increased**

- Limit jumps to $2.5 million, phaseout starts at $4 million — both indexed for inflation.
- **Example:**
- *Chase Corp. buys and uses $2 million in qualifying equipment in 2025. Since $2 million is below the $4 million phaseout, Chase may expense the full amount up front.*
- *If Chase buys $4.5 million of equipment, the maximum deduction is reduced: $2.5 million minus $500,000 excess = $2 million allowed as a Section 179 deduction.*

***

# # # 4. **Qualified Small Business Stock (QSBS) Gets Better**

- Exclusion phased in: 50% after 3 years, 75% after 4, 100% after 5 years.
- New limits: $15 million per issuer, $75 million gross assets.
- **Example:**
- *Ethan invests $1 million into a qualified domestic C corp on Aug. 1, 2025. Five years later, Ethan sells his shares for $20 million. He can exclude up to $15 million in gain from federal income tax; the remaining $4 million is subject to capital gains tax*

***

# # # 5. **1099-K and 1099-NEC/MISC Reporting Thresholds Raised**

- 1099-K threshold reverts to $20,000 and 200 transactions for 2025.
- 1099-NEC/MISC threshold up to $2,000.
- **Example:**
- *Ed sells art on Etsy and Shopify; receives $1,500 from 50 PayPal transactions—Ed won’t get a 1099-K. But he receives $2,500 via check for a commission and $1,800 for design services. Only the $2,500 triggers a 1099-NEC (from 2026, the $1,800 alone would not trigger one). This means fewer tax forms to file for side-gigs and small sales!*

***

# # # 6. **Early End for Clean Energy/Vehicle Credits**

- Credits for clean vehicles, energy-efficient improvements, and more will end *early* (some after Sept. 30 or Dec. 31, 2025).
- **Example:**
- *If you purchase an electric vehicle after Sept. 30, 2025, you will not be eligible for the federal clean vehicle credit, so plan purchases accordingly!*

07/03/2025

📢 Big News: President Trump’s “Big Beautiful Plan” Tax Updates Just Passed! 📢

Here’s the quick breakdown — the good, the bad, and the ugly:

✅ Good:
• Tax cuts from 2017 are now permanent for individuals & businesses: The higher standard deduction from the 2017 tax law is now permanent and slightly increased, making tax filing simpler for most people; 20% deduction for qualified business income (QBI) for many pass-through businesses; 100% bonus depreciation for business investments investments in equipment and machinery through 2029.
• No federal tax on up to $25K in tips & $25K in overtime pay through 2028
• Child tax credit increased to $2,200, permanently (inflation-adjusted).
• State and Local Tax deduction cap rises from $10,000 to $40,000 (for those earning under $500,000), but only until 2030. It lets you deduct certain state and local taxes (like income and property taxes) from your federal taxable income, lowering your federal tax bill.
• Seniors 65+ get a $6,000 Social Security tax deduction (2025-2029); Phases out for incomes above $75,000 (single) or $150,000 (married)

⚠️ Bad:
• Biggest tax cuts go to the wealthiest: top 0.1% get nearly $300K/year, bottom 20% only about $160
• Medicaid funding cut by $1 trillion, risking coverage for millions
• More complex tax code with new rules and loopholes
• National debt raised by $4 trillion, likely increasing borrowing costs

🚨 Ugly:
• Deep Medicaid cuts and stricter work requirements could hurt low-income families and seniors
• Higher interest rates may make mortgages and loans more expensive for everyone
• Rollbacks on clean energy investments could impact jobs and climate efforts

Bottom line: While many will see tax relief, the wealthiest benefit the most, and cuts to healthcare and social programs could hit vulnerable Americans hard.

04/24/2025

NC residents! you now have till September 25, 2025, to file and pay your 2024 tax return

NC-2025-01, April 17, 2025 — Due to the lingering effects of Hurricane Helene, the IRS today further postponed until Sept. 25, 2025, a wide range of tax deadlines for taxpayers throughout North Carolina. Previously, the deadline had been May 1, 2025, for Form 1040 filers, among many others.