Stephens Tax Service

11/17/2025

Military Combat Pay – Did You Know?

Members of the military may generally exclude combat pay from their taxable income up to a certain limit. However, if you receive military combat pay, including it as earned income may help you qualify for the Child Tax Credit or Earned Income Tax Credit. In some cases, this can even result in a larger tax refund.

11/10/2025

Injured Spouse Relief - Did You Know?

If you file a joint tax return and the IRS withholds your refund due to debts owed only by your spouse, you may be able to claim your share of the refund. This program, known as Injured Spouse Relief, may be available to you regardless of whether you live with your spouse.

11/03/2025

"No Tax on Car Loan Interest" Deduction – Did You Know?

The recently enacted One Big Beautiful Bill Act (OBBBA) created a new tax deduction for interest paid on certain car loans. Eligible people who initiate qualifying auto loans after December 31, 2024 may deduct up to $10,000 per year of loan interest, regardless of whether they itemize deductions on their tax returns.

Eligibility criteria for the deduction include income limits, and a requirement that the vehicle be purchased new for personal (not business) driving purposes. In general, to deduct car loan interest in full, a married couple filing a joint return must have a modified adjusted gross income (MAGI) under $200,000. For other filing statuses, the MAGI limit for the full deduction is $100,000. The deduction phases out at higher income levels. Other restrictions include a requirement that the vehicle underwent final assembly in the U.S.

If you qualify for the deduction, you will need to document the amount of auto loan interest you paid. You may receive a year-end tax form from the lender providing this information, but for this year, lenders may make the information available to borrowers in other ways. A tax professional can help you determine whether you qualify to deduct auto loan interest, and if so, help you properly report the interest you paid to get the largest deduction possible.

10/28/2025

2026 Healthcare Open Enrollment - Did You Know?

The 2026 open enrollment period for Marketplace health insurance begins this Saturday, November 1, 2025, and ends December 15, 2025 for plans starting January 1, 2026. During this period, you will be able to enroll in, renew, or change health plans for the coming year.

Once the Open Enrollment period is over, you will only be able to enroll if there's a qualifying life event for the Special Enrollment Period.

Enrollment can be done at https://healthcare.gov, and a simple checklist of documents you'll need can be found here: https://marketplace.cms.gov/outreach-and-education/marketplace-application-checklist.pdf.

10/21/2025

Flexible Spending Arrangements - Did You Know?

Changing jobs? Before leaving your current position, check the balance in your flexible spending arrangement (FSA). FSAs are generally not transferable to a new employer, and unused funds are often forfeited when you leave your job. Some employers may offer a short grace period or allow a small rollover amount, but many do not. To make the most of your pre-tax dollars, use any remaining FSA balance before your last day, such as by scheduling medical appointments or purchasing eligible health items.

10/15/2025

Qualified Dividends - Did You Know?

If you earn dividend income, take a close look at your year-end Form 1099-DIV to see whether any of your dividends are reported as “qualified dividends.” Qualified dividends meet certain IRS criteria, such as being paid by a U.S. corporation or qualifying foreign company and meeting specific holding-period requirements. These dividends are taxed at the lower long-term capital gains rates instead of ordinary income rates, which can reduce your overall tax bill.

10/06/2025

October 15th Filing Extension Deadlines

Taxpayers who requested an extension to file their 2024 federal income tax returns should do so by next Wednesday, October 15, 2025. The same deadline applies to C corporations that received an extension to file their 2024 corporate returns (Form 1120).

In addition, taxpayers with foreign financial accounts exceeding $10,000 at any point in 2024 who are required to file a Report of Foreign Bank and Financial Accounts (FBAR) should also do so by the extension deadline of October 15.

09/29/2025

IRS Issues New Warning About Tax Credit Scams

The IRS recently warned all Americans about the growing number of tax scams getting promoted on the internet and social media. Many of the scams involve fraudulently claiming tax credits like the Fuel Tax Credit and Sick and Family Leave Credit. In reality, the vast majority of people are not eligible for these credits, which can only be claimed by businesses and self-employed people under very specific circumstances.

The consequences of filing a return with improper credit claims may include denial of a refund, a $5,000 civil penalty, and additional tax penalties and interest charges. Over the last few years, IRS penalties assessed in connection with tax credit scams have totaled over $162 million.

Common traits of these scams include claims that "everyone qualifies" for a tax credit, promises of a rapid refund with little or no paperwork, advice to amend past tax returns by adding unusual credit claims, and encouragement to ignore or falsely respond to IRS notices. In reality, no one can determine whether you qualify for a tax credit without reviewing your circumstances. Anyone who says otherwise is almost certainly peddling a scam.

If you receive an IRS letter about a tax credit you claimed, or believe you may have been misled by one of these scams, seek guidance from a reliable source immediately such as a trusted tax professional.

09/22/2025

Work Opportunity Tax Credit Expiring at the End of 2025

The Work Opportunity Tax Credit (WOTC) provides a benefit for employers that hire people who have traditionally faced disadvantages when seeking work. However, the credit is only available through December 31, 2025.

To qualify for the WOTC, an employer must hire one or more individuals from a group specified in the rules for the credit. Those groups include:
- Qualified unemployed veterans (including veterans with disabilities)
- Recipients of public assistance like long-term unemployment, long-term family assistance, SNAP benefits, Supplemental Security payments or Temporary Assistance for Needy Families
- People who live in areas designated as empowerment zones or rural renewal counties
- People referred to vocational rehabilitation programs
- Formerly incarcerated people

The amount of the WOTC is generally based on wages paid to the qualifying worker, and you may claim the credit as part of the General Business Credit. Therefore, the credit is nonrefundable, but any unused credit may be carried forward or back under the usual rules. A business tax professional can help you determine whether your business qualifies for the WOTC, and if so, help you complete all the required paperwork to claim it before it expires.

09/20/2025

ODT Color Logo
Ohio Department of Taxation Warns of New Text Message
Scam Including Website Impersonation
COLUMBUS, Ohio — The Ohio Department of Taxation (ODT) is warning taxpayers about text messages falsely claiming to be from the department that leads recipients to a website impersonating ODT’s site.

The text message states, “Your tax refund request has been approved and is now pending release.” It asks recipients to finalize processing by clicking on the link provided to confirm their account details. The fraudulent link takes users to a webpage that mimics ODT’s page and improperly displays ODT’s logo and branding.

“Scammers are becoming increasingly sophisticated, even going so far as to copy our logos and create fake websites that look official,” said Ohio Tax Commissioner Patricia Harris. “I want Ohioans to know that the Department of Taxation will never contact you by text about your taxes or refunds. If you receive one of these messages, do not click the link—go directly to tax.ohio.gov to ensure you are on our official site.”

Important Reminders for Taxpayers:

ODT does not use text messaging to contact taxpayers about tax matters and does not request or disperse payment through text.

Here are some other important tips to keep in mind:

Do not click links or respond to suspicious texts.
Do not share personal or financial information via text.
Verify the web address. Taxation’s official website is tax.ohio.gov.
When in doubt, contact us through our official channels, found on tax.ohio.gov. Use the phone numbers and email options listed on our Contact Us page.
If you feel you have been the victim of an imposter scam, you should always contact local law enforcement as well as the credit reporting agencies to let them know your information has been compromised. You should also report it to the Ohio Attorney General as well as the Office of Consumer Affairs within the Division of Financial Institutions at the Ohio Department of Commerce at (866) 278-0003 or [email protected].

09/20/2025

https://www.youtube.com/watch?v=KgTD8Sx3Gss

The Ohio Department of Taxation (ODT) is warning taxpayers about text messages falsely claiming to be from the department that leads recipients to a website ...

09/15/2025

Quarterly Estimated Tax Payments - Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the June 1st - August 31st, 2025 quarter of year is today, September 15th, 2025.

For payments made using IRS Direct Pay, you can make payments until 11:45PM EST, and for payments using a credit or debit card, payments can be made up to midnight on the due date.