Rethink Taxes LLC

01/21/2026

01/10/2026

Ready to file? Maybe you are not sure what all you need . Reach out to us! We will be glad to help ! We each have 16 years of experience and love helping our clients get the best outcome !

01/08/2026

The announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season. You will have until Wednesday, April 15, 2026, to file your 2025 tax returns and pay any tax due. Don’t forget that IRS.gov has online tools and resources you can use before, during and after filing your federal tax return. For a list of filing season tools, reminders and resources, read: https://ow.ly/1yqq50XTweL

01/01/2026

IRS sets 2026 business standard mileage rate at 72.5 cents per mile, up 2.5 cents

IR-2025-128, Dec. 29, 2025

WASHINGTON — The Internal Revenue Service today announced that the optional standard mileage rate for business use of automobiles will increase by 2.5 cents in 2026, while the mileage rate for vehicles used for medical
purposes will decrease by half a cent, reflecting updated cost data and annual inflation adjustments.

Optional standard mileage rates are used to calculate the deductible costs of operating vehicles for business, charitable, and medical purposes. Additionally, the optional standard mileage rate may be used to calculate the deductible costs of operating vehicles for moving purposes for certain active-duty members of the Armed Forces, and now, under the One, Big, Beautiful Bill, certain members of the intelligence community.

Beginning Jan. 1, 2026, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
72.5 cents per mile driven for business use, up 2.5 cents from 2025.
20.5 cents per mile driven for medical purposes, down a half cent from 2025.
20.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces (and now certain members of the intelligence community), reduced by a half cent from last year.
14 cents per mile driven in service of charitable organizations, equal to the rate in 2025.
The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.
While the mileage rate for charitable use is set by statute, the mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes, meanwhile, is based on only the variable costs from the annual study.

Under the law, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses, except for certain educator expenses. However, deductions for expenses that are deductible in determining adjusted gross income remain allowable, such as for certain members of a reserve component of the Armed Forces, certain state and local government officials, certain performing artists, and eligible educators. Alternatively, eligible educators may claim an itemized deduction for certain unreimbursed employee travel expenses. In addition, only taxpayers who are members of the military on active duty or certain members of the intelligence community may claim a deduction for moving expenses incurred while relocating under orders to a permanent change of station.

Use of the standard mileage rates is optional. Taxpayers may instead choose to calculate the actual costs of using their vehicle.

Taxpayers using the standard mileage rate for a vehicle they own and use for business must choose to use the rate in the first year the automobile is available for business use. Then, in later years, they can choose to use the standard mileage rate or actual expenses.

For a leased vehicle, taxpayers using the standard mileage rate must employ that method for the entire lease period, including renewals.

12/30/2025

If an tax deduction is an important consideration for you when donating a vehicle to a charity, there are a few steps you should take to see if you will qualify. Before you give your vehicle to a charitable organization, you should:

-Check out the charity,
-See if you’ll get a tax benefit,
-Check the value of your vehicle and
-Review your responsibilities as a donor to a charity.

Publication 4303 provides general guidelines for the steps listed above. View them here: https://ow.ly/cAIQ50Qf6Qa

12/29/2025

A little preparation goes a long way, especially when it comes to tax filing. One thing you can do now to make filing season easier: Find your direct deposit information. If you don't have a bank account, you have a few options you can plan ahead for. Things like prepaid debit cards, digital wallets or mobile apps support direct deposit.

Get ready for the filing season at https://ow.ly/ONTT50XKBJ5.

12/24/2025

IRS updates frequently asked questions on changes to the Limitation on the Deduction for Business Interest Expense

IR-2025-126, Dec. 23, 2025
WASHINGTON — The Internal Revenue Service today updated frequently asked questions in Fact Sheet 2025-09 regarding changes to the limitation on the deduction for business interest expense (Section 163(j)) under the One, Big, Beautiful Bill.

For tax years beginning after December 31, 2024, OBBB amended Section 163(j) by:

Allowing taxpayers to add back deductions for depreciation, amortization, or depletion when calculating Adjusted Taxable Income.
Expanding the definition of floor plan financing interest to treat, as a motor vehicle, any trailer or camper designed to provide temporary living quarters for recreational, camping or seasonal use and designed to be towed by, or affixed to, a motor vehicle.
For tax years beginning after December 31, 2025, OBBB amended Section 163(j) by:

Clarifying that business interest expense subject to Section 163(j) includes any interest incurred and capitalized during the tax year, except for interest capitalized under Sections 263(g) and 263A(f).
Excluding a U.S. shareholder’s controlled foreign corporation income inclusion items under Sections 951(a), 951A(a) and 78, and associated deductions, from the computation of Adjusted Taxable Income.

12/23/2025

Whether you currently participate in a Health Savings Account (HSA) or you're interested in getting one, changes under the One, Big, Beautiful Bill have expanded eligibility requirements. This opens the door for more people to save and pay for healthcare through this tax-free benefit. New guidance from and Treasury explain the changes.

Find out more about HSA eligibility changes at https://ow.ly/JjWq50XGSKe.

12/18/2025

Everyone’s always asking about claiming their pets! Now someone is really getting serious about it!

The woman argued that her dog ‘is like my daughter’ and ‘definitely’ a dependent

12/16/2025

Improvements to the Adoption Tax Credit make adoption more affordable

Taxpayers who finalized an adoption in 2025 or started the adoption process before 2025, may qualify for the Adoption Tax Credit. Additionally, there have been significant changes to the tax credit under the One, Big, Beautiful Bill.

Here’s an overview of the credit and eligibility, including the recent changes:

The credit can be claimed for eligible expenses related to international, domestic, private and public foster care adoptions.
The maximum Adoption Credit taxpayers can claim on their 2025 tax return is $17,280 per eligible child.
This credit is now partially refundable, meaning taxpayers may get back more than what is owed in taxes The refundable amount is up to $5,000 per qualifying child for tax years 2025 and after. However, any nonrefundable amount carried forward can’t be used to calculate a refundable portion for future tax years.
An eligible child must be younger than age18. If the adopted person is older, they must be unable to physically or mentally take care of themselves.
Indian tribal governments now have the same authority as State governments to determine whether a child has special needs for the purpose of claiming the Adoption Credit. Taxpayers who adopt an eligible U.S. child with special needs may be able to claim the credit even if they didn’t pay any qualified adoption expenses.
Taxpayers who adopt their spouse's child can't claim this credit.
Taxpayers who carry out a surrogate parenting agreement do not qualify for the credit.
Taxpayers can also use the Interactive Tax Assistant to determine their eligibility.

Eligible expenses

Reasonable and necessary adoption fees
Court costs and legal fees
Adoption related travel expenses like meals and lodging
Other expenses directly related to the legal adoption of an eligible child
Expenses may qualify even if the taxpayer pays them before an eligible child is identified. For example, some taxpayers pay for a home study at the beginning of the adoption process. These taxpayers can claim the fees as qualified adoption expenses.

Taxpayers should complete Form 8839, Qualified Adoption Expenses, to figure how much credit they can claim on their tax return.

08/27/2025

Preparing your classroom for the new school year? Eligible educators may deduct qualifying out-of-pocket expenses on their tax return next year. Qualifying expenses include books, supplies, computer equipment and supplementary materials that you use in your classroom.

Get more information from the at https://ow.ly/Azzw50WKpj5.