EDH Tax Solutions

08/26/2026

𝗪𝗵𝗮𝘁 𝘀𝗵𝗼𝘂𝗹𝗱 𝗜 𝗱𝗼 𝘄𝗶𝘁𝗵 𝗺𝘆 𝘁𝗮𝘅𝗲𝘀 𝗯𝗲𝘁𝘄𝗲𝗲𝗻 𝗹𝗲𝗮𝘃𝗶𝗻𝗴 𝗺𝘆 𝗷𝗼𝗯 𝗮𝗻𝗱 𝘁𝗮𝗸𝗶𝗻𝗴 𝗦𝗼𝗰𝗶𝗮𝗹 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆?

A core strategy we suggest during this retirement gap is a Roth conversion staircase:
• Move funds from your traditional IRA into a Roth IRA when your income sits in lower tax brackets.
• Pay taxes today at low rates so that money and its future growth stay 100% tax-free.
• Convert in stages each December to fill your target bracket line, instead of moving a single lump sum that spikes your tax bracket.

𝘖𝘯𝘦 𝘤𝘳𝘪𝘵𝘪𝘤𝘢𝘭 𝘳𝘶𝘭𝘦: Pay the taxes using cash outside your IRA, such as a high-yield savings or taxable brokerage account. Withholding tax money directly from the IRA reduces your tax-free shelter and triggers a 10% IRS penalty if you're under age 59½.

If you recently left your job or plan to step away soon, DM us to find out how to map out your retirement gap.

08/25/2026

𝗗𝗼𝗲𝘀 𝗺𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗾𝘂𝗮𝗹𝗶𝗳𝘆 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗥&𝗗 𝘁𝗮𝘅 𝗰𝗿𝗲𝗱𝗶𝘁 𝘁𝗵𝗶𝘀 𝘆𝗲𝗮𝗿?
You don’t need scientists on staff, but the IRS requires your project to hit four specific benchmarks:
1. You set out to build or improve a product, process, or software.
2. The work relied on hard science, engineering, or software development.
3. You faced technical uncertainty about how to achieve the end result when you started.
4. You used a process of trial and error to figure it out.

If you spent time and payroll working through those kinds of technical hurdles this year, you likely qualify. That includes projects that were ultimately scrapped.

𝗖𝗼𝗺𝗺𝗲𝗻𝘁 𝗥&𝗗 if you want to find out if any projects in your business would apply for 2027 filing.

08/24/2026

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗼𝗻𝗲 𝗺𝗼𝗻𝗲𝘆 𝗼𝗿 𝘁𝗮𝘅 𝗿𝘂𝗹𝗲 𝘆𝗼𝘂 𝗵𝗮𝗱 𝘁𝗼 𝗹𝗲𝗮𝗿𝗻 𝘁𝗵𝗲 𝗵𝗮𝗿𝗱 𝘄𝗮𝘆 𝗮𝘀 𝗮𝗻 𝗮𝗱𝘂𝗹𝘁 𝘁𝗵𝗮𝘁 𝘆𝗼𝘂 𝘄𝗶𝘀𝗵 𝘄𝗮𝘀 𝘁𝗮𝘂𝗴𝗵𝘁 𝗶𝗻 𝗵𝗶𝗴𝗵 𝘀𝗰𝗵𝗼𝗼𝗹?

Whether it's how W-4 withholdings work, how interest adds up, or how credit scores are calculated, we've all had that moment. Drop yours below!

08/21/2026

𝗦𝗵𝗼𝘂𝗹𝗱 𝗜 𝗮𝗱𝗷𝘂𝘀𝘁 𝗺𝘆 𝘁𝗮𝘅 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗮𝗳𝘁𝗲𝗿 𝗮 𝗱𝗶𝘃𝗼𝗿𝗰𝗲?

Yes, because your tax status has changed, and if you don't note that, you could end up paying more in taxes than you should.

Do these two things as soon as possible:
1. Update your W-4, switching to Single or Head of Household
2. Assign child tax credits to whichever parent qualifies for the full dollar amount. (Check income phase-outs before deciding who claims the kids.)

08/20/2026

𝗛𝗼𝘄 𝗱𝗼 𝗜 𝗺𝗲𝗮𝘀𝘂𝗿𝗲 𝘄𝗵𝗲𝘁𝗵𝗲𝗿 𝗮 𝗻𝗲𝘄 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗯𝗲𝗻𝗲𝗳𝗶𝘁 𝗶𝘀 𝗴𝗶𝘃𝗶𝗻𝗴 𝗺𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗮 𝘀𝗼𝗹𝗶𝗱 𝗿𝗲𝘁𝘂𝗿𝗻 𝗼𝗻 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁?

Tracking a real return on family perks like Trump Accounts comes down to combining enrollment data with your payroll and retention numbers.

Focus on three main measurements:
• Track participation rates by comparing how many eligible working parents sign up versus your total headcount.
• Monitor participation across wage levels so your plan passes statutory nondiscrimination testing and stays compliant.
• Compare turnover rates among working parents before and after launch to see if the perk cuts your hiring costs.

To track this in your business, set up a dedicated sub-account in your general ledger for benefit contributions and administrative fees. Compare this specific P&L expense line item against your historical recruiting and onboarding costs every quarter.

𝘋𝘰 𝘺𝘰𝘶 𝘤𝘶𝘳𝘳𝘦𝘯𝘵𝘭𝘺 𝘵𝘳𝘢𝘤𝘬 𝘵𝘩𝘦 𝘙𝘖𝘐 𝘰𝘯 𝘺𝘰𝘶𝘳 𝘦𝘮𝘱𝘭𝘰𝘺𝘦𝘦 𝘣𝘦𝘯𝘦𝘧𝘪𝘵𝘴, 𝘰𝘳 𝘥𝘰 𝘺𝘰𝘶 𝘮𝘰𝘴𝘵𝘭𝘺 𝘰𝘧𝘧𝘦𝘳 𝘱𝘦𝘳𝘬𝘴 𝘣𝘢𝘴𝘦𝘥 𝘰𝘯 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶𝘳 𝘵𝘦𝘢𝘮 𝘢𝘴𝘬𝘴 𝘧𝘰𝘳?

08/19/2026

𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗻𝘂𝗺𝗯𝗲𝗿 𝗼𝗻𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝘁𝗵𝗮𝘁 𝗸𝗲𝗲𝗽𝘀 𝘆𝗼𝘂 𝗮𝘄𝗮𝗸𝗲 𝗮𝘁 𝗻𝗶𝗴𝗵𝘁?

We genuinely want to know.

08/18/2026

𝗪𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝘀 𝗶𝗳 𝗺𝘆 𝗰𝗵𝗶𝗹𝗱'𝘀 𝗼𝘁𝗵𝗲𝗿 𝗽𝗮𝗿𝗲𝗻𝘁 𝗮𝗻𝗱 𝗜 𝗯𝗼𝘁𝗵 𝗰𝗹𝗮𝗶𝗺 𝗼𝘂𝗿 𝗰𝗵𝗶𝗹𝗱 𝗼𝗻 𝗼𝘂𝗿 𝘁𝗮𝘅𝗲𝘀?

The IRS gives the default claim to the custodial parent, who is the parent the child lives with for at least 183 nights during the year.

When both parents claim the same child, the situation unfolds in three main stages:
1. The first return gets accepted by the e-file system, while the second return gets rejected because the child's Social Security number is already marked as used.
2. The second parent must mail in a signed paper return to force an IRS review, triggering Notice CP87A where both parents must submit residency proof like school or medical records.
3. The IRS awards the claim based on night counts or higher income if custody is an exact 50/50 split, forcing the non-qualifying parent to pay back credits with interest and penalties.

A practical way to protect yourself is to keep third-party residency records on file if you are the custodial parent, or secure a signed IRS Form 8332 from the custodial parent before filing if you are the noncustodial parent.

𝘐𝘴 𝘵𝘩𝘦 183-𝘯𝘪𝘨𝘩𝘵 𝘳𝘶𝘭𝘦 𝘴𝘰𝘮𝘦𝘵𝘩𝘪𝘯𝘨 𝘺𝘰𝘶 𝘩𝘢𝘷𝘦 𝘦𝘷𝘦𝘳 𝘩𝘢𝘥 𝘵𝘰 𝘤𝘢𝘭𝘤𝘶𝘭𝘢𝘵𝘦 𝘧𝘰𝘳 𝘺𝘰𝘶𝘳 𝘰𝘸𝘯 𝘧𝘢𝘮𝘪𝘭𝘺?

08/17/2026

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Discover how to separate personal and business expenses using low-friction tools. Capture every deduction and audit-proof your business.

08/17/2026

𝗖𝗮𝗻 𝗜 𝗽𝗮𝘆 𝗺𝘆 𝗻𝗮𝗻𝗻𝘆 𝗮𝘀 𝗮𝗻 𝗶𝗻𝗱𝗲𝗽𝗲𝗻𝗱𝗲𝗻𝘁 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝗼𝗿?

In most cases, no. The IRS considers nannies household employees because you control how and when they perform their work in your home.

Trying to issue a 1099 or pay under the table opens you up to IRS tax evasion penalties, liability for unpaid employment taxes, and state labor law violations.

Here is how you should set up your nanny pay:
• Both you and your nanny contribute 7.65% for Social Security and Medicare taxes once you cross the annual earnings threshold.
• You pay federal unemployment tax on the first $7,000 of wages if you pay $1,000 or more in any calendar quarter.
• You need to get an Employer Identification Number, issue a W-2 by January 31, and report household taxes using Schedule H on your tax return.

If hiring a nanny allows you and your spouse to work, you can take advantage of the Child and Dependent Care Credit to offset some of those care costs.

𝘍𝘰𝘳 𝘢𝘯𝘺𝘰𝘯𝘦 𝘸𝘩𝘰'𝘴 𝘩𝘪𝘳𝘦𝘥 𝘪𝘯-𝘩𝘰𝘮𝘦 𝘩𝘦𝘭𝘱, 𝘸𝘩𝘢𝘵 𝘸𝘢𝘴 𝘵𝘩𝘦 𝘵𝘳𝘪𝘤𝘬𝘪𝘦𝘴𝘵 𝘱𝘢𝘳𝘵 𝘢𝘣𝘰𝘶𝘵 𝘴𝘦𝘵𝘵𝘪𝘯𝘨 𝘶𝘱 𝘵𝘩𝘦𝘪𝘳 𝘱𝘢𝘺?

08/14/2026

𝗛𝗼𝘄 𝗱𝗼 𝗜 𝘀𝗲𝘁 𝘂𝗽 𝗺𝘆 𝗽𝗮𝘆𝗿𝗼𝗹𝗹 𝘀𝘆𝘀𝘁𝗲𝗺 𝗳𝗼𝗿 𝗧𝗿𝘂𝗺𝗽 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗰𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀?

When adding employer contributions to a child's account, your payroll software needs specific mapping to process and track transactions accurately.

Here are the core steps:
• Set up your system for employer-paid contributions only, keeping paycheck deferrals off the table for now.
• Label transactions as a Section 128 Employer Contribution when routing funds to the child's account trustee.
• Map total annual contributions directly to Box 12 on Form W-2 using Code TA.
• Give participating employees a written statement by January 31 showing total contributions made to their dependents' accounts during the previous calendar year.

Comment SETUP below, and we can help you check your payroll mapping before rolling out new benefits.