Cloud Street Coffee & More

03/07/2026

Remarks by IRS Chief Executive Officer Frank J. Bisignano before the House Ways and Means Committee

02/27/2026

Employee (W-2) vs. Independent Contractor (1099).

Misclassifying employees as independent contractors can be costly for employers and deny workers their rights. The U.S. Department of Labor’s Wage and Hour Division has proposed a rule under the Fair Labor Standards Act to clarify worker status, aligning with federal court precedent. The proposed rule uses the "economic reality" test, considering factors such as:
- Worker control over the work
- Opportunity for profit or loss potential based on initiative and investment
- Skill required for the work
- Permanence of the working relationship
- Integration of the worker into the production process

The rule emphasizes actual practices over theoretical possibilities and includes eight examples showing how these factors apply in specific situations.

We encourage you to share your comments and feedback on the proposal by 11:59 pm ET on April 28, 2026.

02/23/2026

💰 Top Tax Deductions Every American Should Know (2026 Edition) 🇺🇸

Are you keeping more of what you earn? Understanding tax deductions can significantly lower your taxable income and reduce what you owe.

Here’s a quick breakdown:

✅ Standard Deduction
A fixed amount that reduces your taxable income. Simple and often the best option if you do not have large deductible expenses.

✅ Itemized Deductions
You may benefit from itemizing if your total eligible expenses exceed the standard deduction. Common examples include:
• Mortgage interest
• State and local taxes (SALT)
• Charitable contributions
• Casualty and theft losses
• Certain medical expenses

💡 Tip: Always keep organized records such as receipts, invoices, and bank statements to support your deductions.

The key question is simple:
👉 Are your total deductible expenses higher than the standard deduction?
If yes, itemizing may save you more money.

Tax planning is not just for April. Smart decisions throughout the year can make a big difference at filing time.

Need help maximizing your deductions and filing accurately? Send us a message. We are here to help you keep more of your hard earned income.

02/19/2026

💰 How Is Federal Income Tax Calculated?

Understanding how your federal income tax is calculated can help you plan better and avoid surprises at tax time. Here’s a simple breakdown:

1️⃣ Start With Your Gross Income
This includes wages (W-2), self-employment income, interest, dividends, rental income, and other earnings.

2️⃣ Adjustments to Income
Certain deductions like student loan interest, educator expenses, and retirement contributions reduce your income to arrive at your Adjusted Gross Income (AGI).

3️⃣ Standard or Itemized Deduction
You subtract either the standard deduction or your itemized deductions from your AGI to determine your taxable income.

4️⃣ Apply Tax Brackets
The U.S. uses a progressive tax system. That means your income is taxed in layers. Each portion of your income falls into a specific tax bracket, and only that portion is taxed at that rate.

5️⃣ Subtract Tax Credits
Credits such as the Child Tax Credit or education credits directly reduce your tax liability dollar for dollar.

6️⃣ Compare With Withholding or Estimated Payments
If you paid more than what you owe, you receive a refund. If you paid less, you owe the balance.

📌 The key takeaway: Not all your income is taxed at one rate. Only the income within each bracket is taxed at that specific percentage.

Need assistance on filing your tax return? Message us.