Gordon Keeter Nichols CPAs

09/02/2026

If you want to transfer some of your wealth to your adult children or other family members, one of the simplest tools available is the gift tax annual exclusion. For 2026, the exclusion is $19,000 per recipient. If you’re married and your spouse consents to a joint gift, also called a “split gift,” the exclusion is effectively doubled to $38,000 per recipient. If you make gifts in excess of the annual exclusion (or gifts ineligible for the exclusion), you can tap your lifetime gift and estate tax exemption ($15 million for 2026). Gifts must be of a “present interest” to be eligible for the annual exclusion and, to be covered by your 2026 exclusion, be made by Dec. 31. Contact us for details.

09/01/2026

Could your traditional 401(k) or IRA balance be too large? Maybe!

Contributing as much as you can to tax-deferred retirement accounts can be a good idea. Contributions are pretax or deductible, and tax-deferred compounding can turbocharge growth.

But sometimes maximizing tax deferral is counterproductive. This may be true if tax rates increase by the time you pay tax on distributions. Also, retirement plan distributions are taxed at your ordinary-income rate, not your long-term capital gains rate. So you may pay a higher tax rate on dividends and growth than you would if you held the investments in a taxable account.

Fortunately, there are strategies that can help. Contact us to learn more.

Tax-deferred retirement accounts offer valuable benefits, but too much deferral can create tax challenges. Explore Roth conversions and other tax-smart strategies.

08/28/2026

Fun fact: What does it cost to install solar panels on your home?

08/27/2026

Cryptocurrency holders: Be alert for a new IRS impersonation scam. Fraudsters are mailing fake IRS letters directing recipients to a bogus “Digital Asset Compliance Portal.” The letters instruct recipients to scan a QR code that leads to a fraudulent website designed to look like IRS.gov. The site may ask for personal information, cryptocurrency wallet details, or exchange account credentials that criminals can use to steal identities or digital assets. If you receive one of these letters, don’t respond. Report any suspicious communication to the IRS immediately (https://bit.ly/4h71IOi). If you have questions about an IRS notice or digital asset reporting, we’re here to help.

08/26/2026

At back-to-school time, many teachers buy classroom supplies to help make the school year a success for their students — and don’t receive reimbursement. If you’re among them, you may have expanded opportunities for tax deductions this year.

Eligible educators may qualify for two tax deductions in 2026. Explore educator expense rules, qualifying costs, and new OBBBA tax benefits.

08/25/2026

When is a lemonade stand not just a lemonade stand? If your child earns $400 or more annually in profit from a lemonade stand, lawn service or other self-employment, that income may be taxable. Kids may be able to deduct certain business expenses to lower their self-employment income and potential taxes. They also have several tax responsibilities, including filing a tax return and, possibly, making estimated payments. They’re generally allowed to sign their own return, but should get adult help to prepare it. In the meantime, make sure your child keeps good income and expense records. This will facilitate easier tax preparation.

08/24/2026

Is Sept. 15 flagged on your tax calendar? It’s the deadline for individuals to make their third 2026 estimated tax payment. Estimated payments are generally required if you expect to owe at least $1,000 in federal tax for 2026 after withholding and credits, and your withholding won’t equal at least 90% of your 2026 tax liability or 100% or 110% (depending on your 2025 income) of your 2025 tax liability. This may be the case if you have income from self-employment, investments or other sources not covered by withholding. Staying current with estimated payments can help you avoid underpayment penalties and a larger tax bill on April 15. If you have questions, we’re here to help.

08/21/2026

Infographic: Best practices for selling American-made goods.

08/20/2026

Scholarship awards can provide significant financial relief to families of college-bound students. Most, but not all, of the awards are tax-free. To qualify for tax-free status, scholarships must meet three criteria: 1) The student must be a degree candidate at an eligible educational institution, 2) the award must be used to pay for tuition and fees, books, and certain supplies (not room and board or travel), and 3) the award can’t represent wages for teaching or research. Many graduate student awards have employment compensation components, so they may be taxable. Also, taxable scholarship money could potentially be subject to the “kiddie” tax. Contact us for more information.

08/19/2026

Contributions to Section 530A accounts (also known as Trump Accounts) are now eligible for the gift tax annual exclusion. If, for example, you contribute cash (including via check or EFT) to a child or grandchild’s account, that contribution won’t be subject to the federal gift tax or related reporting requirements, as long as your total gifts to the child for the year don’t exceed $19,000. Note that contributions from most sources are limited to $5,000 per year (not including the initial federal government contribution of $1,000 if the child qualifies), per Section 530A account. Also, the recipient must be under age 18 at the end of the tax year. Have questions? Contact us.