CaroKim Consulting

01/30/2026

𝟐𝟎𝟐𝟓 𝐂𝐚𝐫 𝐋𝐨𝐚𝐧 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭: Deduct up to $10,000 in interest on loans for new, personal-use vehicles assembled in the U.S. IRS requires the following vehicle info:
1️⃣ Vehicle year
2️⃣ Vehicle make
3️⃣ Vehicle model
4️⃣ Vehicle VIN
5️⃣ Loan origination date
6️⃣ Loan Interest paid to lender

Can't provide these info, no car loan interest deduction.

01/27/2026

The Internal Revenue Service today opened the 2026 tax filing season and began accepting and processing federal individual income tax returns for tax year 2025.

📌 Key Individual Income Tax Updates

✅️Permanent Tax Brackets: The seven federal income tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%) are now permanent.

✅️Standard Deduction Increase: For the 2025 tax year, the standard deduction increased to:

⚫️ Single/Married Filing Separately: $15,750

⚫️ Married Filing Jointly: $31,500

⚫️ Head of Household: $23,625

✅️Expanded SALT Deduction: The state and local tax (SALT) deduction cap increased from $10,000 to $40,000 for 2025.

✅️Higher Child Tax Credit: The credit increased to $2,200 per qualifying child (up from $2,000).

✅️New Deductions for 2025 (Claimed via New Schedule 1-A)

📌 These temporary deductions are effective for 2025 through 2028:

✅️No Tax on Tips: Workers in customary tipped industries can deduct up to $25,000 of qualified tip income.

✅️No Tax on Overtime: Employees may deduct qualified overtime pay (the "half" portion of time-and-a-half) up to $12,500 ($25,000 for joint filers).

✅️Deduction for Seniors: Individuals age 65 and older can claim an additional $6,000 "bonus" deduction ($12,000 if both spouses qualify).

✅️Car Loan Interest: Deduct up to $10,000 in interest on loans for new, personal-use vehicles assembled in the U.S.

📌 Family and Savings Updates

✅️Trump Accounts for Children: A new type of IRA for children born between 2025 and 2028; the government provides a $1,000 initial deposit for eligible citizens.

✅️Adoption Credit: Increased to $17,670, with up to $5,000 now refundable.

✅️Retirement Contribution Limits (2025):

401(k), 403(b), and 457: $23,500 ($31,000 for age 50+).

IRA: $7,000 ($8,000 for age 50+).

📌 Expired or Sunsetting Provisions

✅️ Clean Vehicle Credits: Tax credits for new and used electric vehicles (EVs) ended for any vehicle purchased after September 30, 2025.

✅️ Home Energy Credits: Credits for energy-efficient windows, doors, and solar installations are set to sunset after December 31, 2025.

📌 Key 2026 Tax filing season dates
⚫️Jan. 26, 2026: IRS begins accepting e-filed returns.
⚫️Jan. 31, 2026: Deadline for employers to send W-2s and for financial institutions to send most 1099 forms.
⚫️Feb. 15, 2026: Earliest date for returns claiming certain credits (e.g., Form 4136).
⚫️March 2, 2026: EITC and ACTC tax refunds available.
⚫️April 15, 2026: Tax Day; Deadline to file 2025 tax returns or request an extension.
⚫️Oct. 15, 2026: Deadline for taxpayers who requested an extension.

We remain your professional and trustworthy tax, accounting and payroll ProAdvisor's.

09/30/2025

20 years from now, y'll wish you bought it now 🏡🗝🏘
Don'ts before closing.
Don'ts when preparing for home or rental ownership.
3rd rodeo, this refresher never gets old.

09/18/2025

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐑𝐨𝐭𝐡 𝐈𝐑𝐀 𝐚𝐧𝐝 𝐄𝐚𝐫𝐥𝐲 𝐑𝐨𝐭𝐡 𝐖𝐢𝐭𝐡𝐝𝐫𝐚𝐰𝐚𝐥

✨️ 2025 Roth IRA Contribution limits: $7,000
If the income threshold applies, then backdoor the Roth contribution.

If you withdraw earnings from your Roth IRA before you meet the:
1️⃣ Age: You are at least 59½ years old and
2️⃣ Five-Year Rule: The account has been open for at least five years from January 1st of the year you first contributed to any Roth IRA
Then, the amount is subject to your ordinary income tax rate and a 10% early withdrawal penalty. 

👩‍💻Personally: I didn't and don't make the tax rules, but I have to abide by all of them, including on my own 2020 tax return that had an early Roth withdrawal, that I wished was not taxed at my ordinary income tax rate because, I thought I had already prepaid taxes on my paychecks and W2s to support it.

However, I didn't meet the above 2 conditions and didn't meet any of the below early Roth withdrawal exemptions:
3️⃣ First-time home purchase (up to a lifetime limit of $10,000).
4️⃣ Disability or death of the account holder.
5️⃣ Certain qualified education expenses.
6️⃣ Qualified medical expenses or premiums for health insurance if you've been unemployed.
7️⃣ Military reservist distributions.

💫Timely tax info is key, I withdrew because of the 2020 qualified disaster retirement plan dist and repayment act form 8915-E. It stated that although retirement contributions were taxed at ordinary income tax rate, these taxes would be prorated through 3 years, plus zero 10% early withdrawal penalty. 

06/14/2025

2025 Financial Peace University 📑

1️⃣ Baby Steps & Budgeting
2️⃣ Debt Reduction
3️⃣ Investing
4️⃣ Wise Spending & Insurance
5️⃣ Real Estate
6️⃣ Generosity

CaroKim tax recommendations and personal finance consulting touches on most of these principles.
These principles work! They work beautifully in other continents, work for financially peaceful and free taxpayers and tithers.

6-8 weeks of faithful attendance, even Jan snow couldn't stop us 😆 but needed financial decisions were implemented.

04/18/2025

𝐆𝐞𝐨𝐫𝐠𝐢𝐚 𝐇𝐨𝐮𝐬𝐞 𝐁𝐢𝐥𝐥 𝟏𝟏𝟐 signed by Gov. Brian Kemp has cut the state income tax rate for this year, putting more than $2 billion back in taxpayers’ wallets over the next 15 months.

💰 This legislation will spend about $1.2 billion of the $16.5 billion in reserves on income tax refunds as follows:
$250 for single/mfseperately
$375 for HOH
$500 for mfjointly

HB 112 Surplus Eligiblity requirements:
1️⃣ Filed individual income tax return for 2023 and 2024 by May 1, 2025 - New Georgia tax deadline or by Oct 15 per federal extension acceptance.
2️⃣ Had Georgia tax liability for tax year 2023. Zero net Georgia tax = Zero Surplus. Check 2023 form 500 line 16
3️⃣ You're a Georgia resident, part-tear or nonresident

⏳️Timeline: Allow 6-8 weeks if you file 2024 Form 500 before 5/1/2025.

📝Note: May 1, 2025 is Georgia new income tax deadline.

🗣 Keep telling y'all to 🧳 to 🍑, so what's your state DONE 4u lately 👂

02/21/2025

This TAX week in a nutshell:

For fiscal year 2023, the IRS processed nearly 271.5 million tax returns and other forms, and issued $659.1 billion in returns, according to agency data.

“In the face of uncertainty,” tax filers should consider getting their returns in as soon as they can, ideally electronically, said Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center. “This was the case a few years ago with the pandemic,” and the advice still holds true.

1.“We’re firing a bunch of the IRS today, so don’t worry.” Her remarks followed Associated Press reporting that thousands of probationary employees are slated to be cut this week.
IRS expected to lay off 15,000 employees during tax season!
Get Ready For Delayed Tax Refunds, Long Hold Times After Mass IRS Firings.

2. Jesse Watters that Trump wants to “abolish” the IRS “and let all the outsiders pay” via trade policies including tariffs (which tax American importers, not foreign businesses or governments).
“tax rates, interest rates, and mortgage rates are going to come hammering down.”

3. “Abolishing the IRS or even, say, cutting funding to the IRS doesn’t alter our tax system at all,” said Kathleen.

“Only Congress could decide to repeal the many statutes in the Internal Revenue Code that provide the framework for our federal tax system.”

4. Elon Musk’s Department of Government Efficiency initiative is pressing for access to an IRS database containing sensitive taxpayer information, an effort that has drawn a lawsuit alleging privacy and tax law violations. The plaintiffs also claim DOGE’s request poses a potential conflict of interest, since the data could involve tax records and investigations of Musk’s business competitors.

“For decades, since we’ve had these privacy laws enacted by Congress, it’s pretty much just been understood that IRS civil servants handled this data,” Thomas said.

5. DOGE has made an aggressive push to slash federal spending and root out purported fraud and abuse across the government. While some of the initiative’s high-profile claims have been called into question or included errors, conservative pundits and administration officials continue to promote them.

Under current laws, DOGE staffers would have to meet the same requirements to access the IDRS as any other contractor or employee

DOGE wants access to filers’ data, and the commerce secretary says Trump wants to scrap the IRS. But filing a return remains mandatory — the earlier the better, tax advisers say.

01/11/2025

IRS E-file Open Jan 27th

01/06/2025

𝟐𝟎𝟐𝟒 𝐓𝐚𝐱 𝐒𝐞𝐚𝐬𝐨𝐧 𝐁𝐞𝐠𝐢𝐧𝐬
💲 New Tax Year
📑 New Financial Year
💰 New Tax Season

Darling, I need you to IMAGINE, DREAM & DO better & bigger this year 💜

Cheers to a Happy, Healthy & Wealthy 2025 🍾

11/29/2024

5️⃣ years embracing and loving entrepreneurship full-time 💜
1️⃣2️⃣ years preparing taxes & enjoying accounting life 💕
I'm Forever Grateful For You!