Frugal Taxpayers LLC

07/22/2026

🔐 Protect Your Identity with an IRS IP PIN

An Identity Protection PIN (IP PIN) is a free 6-digit number issued by the IRS to help protect your identity and prevent tax-related identity theft.

If you have an IP PIN, remember:

✅ The IRS issues a new IP PIN every year (available starting in mid-to-late January).
✅ Bring your current year's IP PIN to your tax appointment.

⚠️ Without your current IP PIN, we cannot electronically file your federal tax return.

Also, remember:
The IRS will never call, email, text, or message you on social media asking for your IP PIN.

Need help with your taxes? We're here for you!

07/22/2026

Meet the Tax Family Tree! 🌳💰

Ever wonder why taxes seem so confusing? It's because there isn't just one tax form—there's a whole family.

Understanding which forms apply to your situation is one of the easiest ways to avoid mistakes and keep more of your hard-earned money. That's why we're building the Tax Family Tree—to make taxes easier to understand and a little more fun.

07/17/2026

💔 Living Apart but Still Legally Married? Your Tax Filing Status May Not Be What You Think.

Many people believe that if they separate from their spouse and live in different homes, they can file as Single. In most cases, that's not true.

If you are still legally married on December 31, the IRS generally considers you married for the entire tax year.

Your filing options are usually:
✅ Married Filing Jointly
✅ Married Filing Separately

However, some taxpayers who live apart may qualify to file as Head of Household if they meet all IRS requirements. Generally, this means you:
✔️ Lived apart from your spouse during the last 6 months of the year.
✔️ Paid more than half the cost of keeping up your home.
✔️ Had a qualifying child or other qualifying person living with you for more than half the year (subject to IRS rules).

Before choosing Married Filing Separately, understand the tax consequences. Filing separately may:
❌ Result in a higher tax rate.
❌ Limit or eliminate certain tax credits and deductions.
❌ Reduce or eliminate deductions for IRA contributions and student loan interest.
❌ Prevent you from claiming credits such as the Earned Income Tax Credit and many education credits, if you otherwise would have qualified.

Every situation is different. In some cases, filing separately may still be the better option, while in others, qualifying for Head of Household could provide significant tax savings.

Not sure which filing status is right for you? We'd be happy to help you understand your options.

📞 Frugal Taxpayers
Simple tax guidance based on the latest official IRS rules.

07/17/2026

🎥 Major Life Events That Can Affect Your Taxes – Part 4: Losing a Spouse or Loved One 🕊️

Losing a loved one is one of life's hardest moments. Unfortunately, there are also important tax matters that may need attention.

If a spouse or family member passes away:

📌 A final federal income tax return may need to be filed for the deceased person, reporting income received up to the date of death.

📌 The surviving spouse may qualify to use a different filing status, depending on their situation and IRS rules.

📌 Gather and keep important tax documents, such as Forms W-2, 1099s, and other income records.

📌 If you're responsible for handling the person's estate, there may be additional filing requirements depending on the assets and income involved.

Every situation is different, so if you're unsure what applies, it's a good idea to seek professional guidance.

Follow Frugal Taxpayers for simple tax tips based on official IRS guidance.

Send a message to learn more

07/16/2026

Divorced or Separated Parents: What Is IRS Form 8332?

If your child primarily lives with one parent, the IRS generally considers that parent the custodial parent for tax purposes.

Sometimes, the custodial parent wants the noncustodial parent to claim certain child-related tax benefits. That's where IRS Form 8332 comes in.

Form 8332 allows the custodial parent to release their claim so the noncustodial parent may claim:
✅ The Child Tax Credit (if otherwise eligible)
✅ The Credit for Other Dependents (if applicable)

⚠️ Important: Signing Form 8332 does not transfer every tax benefit.

In most cases, the custodial parent may still be able to claim, if otherwise eligible:
✔️ Head of Household filing status
✔️ Earned Income Tax Credit (EITC)
✔️ Child and Dependent Care Credit

💡 Also remember: A divorce decree by itself is generally not enough. The IRS requires a properly completed Form 8332 (or a substantially similar statement) when it's needed.

Questions about dependents or who should claim a child? Contact Frugal Taxpayers. We'll help you understand the IRS rules and choose the option that's right for your situation.

07/16/2026

🎥 Major Life Events That Can Affect Your Taxes – Part 3: Divorce or Legal Separation 💔

Going through a divorce or legal separation is never easy, and it can also affect your taxes.

Here are a few things to review:

📌 Your filing status may change. In most cases, your filing status for the tax year depends on your marital status on December 31. If you're divorced or legally separated by the last day of the year, you generally can't file as Married Filing Jointly or Married Filing Separately for that year. Depending on your situation, you may qualify to file as Single or Head of Household if you meet the IRS requirements.

📌 Update your Form W-4 with your employer so the correct amount of tax is withheld from your paycheck.

📌 If you have children, understand who can claim them as dependents. For federal tax purposes, this isn't always determined by the divorce decree. The IRS has specific rules, although a parent may release the dependency claim to the other parent using IRS Form 8332 in certain situations.

📌 Keep copies of your divorce agreement and any other important tax documents.

Taking a few minutes to update your tax information now can help prevent mistakes and surprises when you file your return.

Follow Frugal Taxpayers for simple tax tips based on official IRS guidance.

Send a message to learn more

07/15/2026

🎥 Major Life Events That Can Affect Your Taxes – Part 2: Having a Baby or Adopting a Child 👶

Congratulations! A new child can bring joy to your family—and it may also change your taxes.

One of the first things to do is apply for your child's Social Security number. In most cases, you'll need it to claim your child on your federal tax return and to qualify for certain tax benefits.

When it's time to file your tax return, have your child's Social Security number available, along with any other important tax documents. Your tax preparer will need this information to determine which tax benefits you may qualify for.

Depending on your situation and if you meet the IRS requirements, you may be eligible for benefits such as:
👶 Child Tax Credit
👶 Child and Dependent Care Credit
👶 Adoption Credit (for qualifying adoption expenses)

Also, keep important records, such as adoption documents, daycare receipts, and other tax-related documents. They may be needed when you file your return.

Every family's situation is different, so the tax benefits you qualify for will depend on the IRS eligibility rules.

Follow Frugal Taxpayers for simple tax tips based on official IRS guidance.

07/15/2026

Teachers & Educators: Don't Miss This Tax Deduction!

If you spend your own money on classroom supplies, you may qualify for the Educator Expense Deduction.

✅ For tax year 2026, eligible educators can deduct up to $350 in qualified unreimbursed classroom expenses. If you and your spouse are both eligible educators and file jointly, you may deduct up to $700 ($350 per spouse).

You may qualify if you:
✔️ Are a teacher, instructor, counselor, principal, classroom aide, coach, or sports administrator in a K-12 school.
✔️ Worked at least 900 hours during the school year.

Qualified expenses may include:
📚 Books and classroom supplies
✏️ Pens, paper, and other teaching materials
💻 Computers, software, and technology used in the classroom
🎓 Professional development courses related to your job
🏀 Sports equipment used in educational programs (for eligible coaches and sports administrators)

💡 Keep your receipts! Every dollar you spend on qualified classroom expenses could help reduce your taxable income.

Have questions about your tax deductions? Contact Frugal Taxpayers—we're here to help you maximize every deduction you're entitled to.

07/14/2026

🎥 Major Life Events That Can Affect Your Taxes – Part 1: Getting Married 💍

Did you know that getting married can change your taxes?

One of the first things to do is make sure your name is updated with the Social Security Administration if it changed. If you moved, update your address with the U.S. Postal Service, your employer, and the IRS if needed.

Next, review your Form W-4 with your employer. Your filing status and household income may have changed, so your tax withholding might need to be adjusted.

Also, remember that your filing status for the entire tax year is generally based on your marital status as of December 31.

Taking a few minutes to update your information now can help you avoid surprises when it's time to file your tax return.

Follow Frugal Taxpayers for simple tax tips based on official IRS guidance.

07/13/2026

Standard Deduction vs. Itemized Deductions
What's the Difference?

One of the most common questions I hear during tax season is:

"Should I take the standard deduction or itemize?"

The good news is that you don't have to guess. Your tax software or tax professional will generally calculate both and use the option that gives you the greater tax benefit.

What is a deduction?

A deduction reduces your taxable income. The lower your taxable income, the less federal income tax you may owe.

📌 Standard Deduction

The standard deduction is a fixed amount set by the IRS that most taxpayers can subtract from their income without having to list individual deductible expenses.

📌 Itemized Deductions

Instead of taking the standard deduction, you can choose to list certain deductible expenses on Schedule A, such as:

*Mortgage interest
*State and local taxes (One Big Beautiful Bill Act, the SALT deduction cap increased beginning with tax year 2025. For 2026, the maximum SALT deduction is $40,400 for most taxpayers, with income-based phaseouts for higher-income taxpayers.)
*Charitable contributions to qualified organizations
*Qualified unreimbursed medical and dental expenses that exceed *7.5% of your Adjusted Gross Income (AGI)
*Certain other deductions allowed by the IRS

🤔 Why do most people take the standard deduction?

For most taxpayers, the standard deduction is larger than their total itemized deductions. It also requires much less recordkeeping.

Who is more likely to itemize?

You may benefit from itemizing if you have significant deductible expenses, such as:

A home with substantial mortgage interest
Large charitable donations
High qualified medical expenses
Significant state and local taxes
(within the IRS limit)

Every situation is different, so it's important to compare both options.

Before the Tax Cuts and Jobs Act of 2017, many more taxpayers itemized because the standard deduction was much lower.

Beginning with the 2018 tax year, the standard deduction increased significantly, making it the better choice for most taxpayers. Today, the majority of taxpayers claim the standard deduction because it provides a larger tax benefit than itemizing.

💡 Simple Example

John and Mary are married, have no children, and file a Married Filing Jointly tax return for 2026.

Their standard deduction is $31,500.

During the year they paid:

Mortgage interest: $12,000
State and local taxes: $9,000
Charitable contributions: $4,000

Their total itemized deductions are $25,000.

Since their standard deduction ($31,500) is greater than their itemized deductions ($25,000), they would choose the standard deduction.

If their total itemized deductions were $36,000, they would choose to itemize instead because it would reduce their taxable income more.

The IRS allows you to claim either the Standard Deduction or Itemized Deductions. This is one of the biggest misconceptions.
You cannot claim both on the same tax return.

The best option is simply the one that gives you the larger deduction, reducing your taxable income and potentially lowering your tax bill.

Send a message to learn more