Tina James, CPA, PLLC - James Tax and Accounting

12/09/2025

⭐ New Senior Deduction (OBBB Update for 2025–2028)

Beginning in 2025, the One Big Beautiful Bill Act (OBBB) gives taxpayers age 65 and older a major new tax break.

✅ What Seniors Get

➡️ An additional $6,000 deduction per qualifying individual (age 65+).
This applies whether you itemize or take the standard deduction, and it stacks on top of the existing age-65 add-on.
• Single / HOH: +$6,000
• Married Filing Jointly (both 65+): +$12,000

📌 Income Phase-Out

The deduction begins to phase out at:
• $75,000 MAGI (Single/HOH/MFS)
• $150,000 MAGI (MFJ)

📝 Why This Exists

Lawmakers originally discussed eliminating tax on Social Security benefits, but the final compromise in OBBB was to give older taxpayers a large, direct deduction instead. This approach benefits seniors across income levels while keeping the Social Security taxation structure in place.

11/21/2025

New for 2026: Charitable Deduction Even If You Don’t Itemize

Starting with the 2026 tax return, taxpayers who use the standard deduction can claim a new above-the-line deduction for cash gifts to qualified public charities.

This is a simple benefit for people who don’t itemize and normally get zero tax benefit for giving.

Deduction amounts (per year):
• $1,000 for Single filers
• $2,000 for Married Filing Jointly

This deduction applies only to cash gifts to qualified public charities.
(Non-cash donations, donor-advised funds, and most private foundations don’t qualify.)

If you usually take the standard deduction, this is a good reason to keep track of your charitable cash gifts in 2026.

11/04/2025

💳 Other IRS Payment Options

If Direct Pay, EFTPS, or your IRS Online Account doesn’t fit your needs — you’ve still got options:
• Credit or Debit Card: Pay online or by phone through IRS-approved processors. Fees apply (typically 1.82% for credit, flat ~$2.50 for debit).
• IRS2Go App: The IRS’s mobile app connects directly to online payment options and refund tracking.
• Same-Day Wire Transfer: For large or last-minute payments. Check with your bank for wire fees.

👉 Learn more at irs.gov/payments

10/31/2025

IRS Online Account (ID.me Login)

Want 24/7 access to your IRS balance, payment history, and tax records — plus the ability to make secure payments right from your account?
Here’s what to know about the IRS Online Account option:

✅ Requires ID.me verification (driver’s license + selfie verification).
✅ Once set up, it’s your reusable login — no need to re-enter bank info each time.
✅ You can view balances, make payments, check transcripts, and even see prior notices.
✅ Setup takes 30–45 minutes, but you only do it once.
✅ Payments post immediately with instant confirmation.

📎 Learn more or sign in at: irs.gov/payments/your-online-account

💬 Pro Tip: Once you’ve verified your ID.me account, you can use it across multiple government websites — not just the IRS. This includes accessing your Social Security earnings report (which you should do annually to check for mistakes).

ID.me Wallet simplifies how individuals discover and access benefits and services through a single login and verified identity.

10/28/2025

EFTPS (Electronic Federal Tax Payment System)

EFTPS is the IRS’s old, tried-and-true payment system. It takes a few extra days to set up, but once you’re in — it’s rock solid and full-featured.

✅ Free to use (ACH from your bank account)
✅ Schedule payments up to 365 days in advance
✅ Bank info stays saved — no re-entry each time
✅ View complete payment history anytime
✅ Cancel up to 2 business days before the scheduled date

🕒 Setup tip: EFTPS mails you a PIN to activate your account. That letter usually takes about 10 days to arrive, so don’t wait until the last minute.

EFTPS is ideal for anyone who makes regular estimated payments or wants a full record of every IRS payment ever made.

Set up your account here: eftps.gov

➡️ We are covering each IRS payment option so you can choose the one that fits you best

Effective October 17th, 2025, Individuals will not be able to create new enrollments via EFTPS.gov. If you are an individual taxpayer and are not enrolled in EFTPS.gov by October 17th, you'll need to create an IRS Online Account for Individuals or use the IRS Direct Pay guest path.

10/01/2025

Direct Pay

Direct Pay is the IRS “no-frills” option for making payments. It’s quick, simple, and doesn’t require creating an account.

✅ Free to use (ACH from your bank account)
✅ No account setup – just enter your info each time
✅ Schedule payments up to 365 days ahead
✅ Instant confirmation when submitted
✅ Cancel up to 2 business days before the scheduled date

⚠️ Tip: Double-check your bank information before submitting. A typo can delay or misdirect your payment.

Direct Pay works for both individuals and businesses — just remember you’ll re-enter your bank details each time.

Make your payment here: irs.gov/payments/direct-pay

➡️ This week we’re walking through each IRS payment option so you can choose the one that fits you best.

Pay personal or business taxes directly from your bank account with IRS Direct Pay. It’s free and secure.

09/29/2025

IRS ENDING PAPER CHECKS

The IRS will stop issuing paper refund checks after September 30. If you’re still receiving refunds by mail, now’s the time to plan for another method.

Paper payments aren’t ending just yet, but the IRS has already signaled they’re being phased out. While there cutoff date isn’t as clear, mailing checks won’t be a long-term option and would I recommend a different method after 9/30/25

Ways to receive IRS refunds (per irs.gov):

• Direct deposit to your bank account (fastest and safest)

• Direct deposit to a prepaid debit card (must be reloadable and accept deposits)

• Direct deposit to a mobile payment app account (if it has routing and account numbers)

• Split your refund into up to 3 accounts using Form 8888

Begnning tomorrrow I wiil cover ways to send payments to the IRS

👉 www.irs.gov/payments

Make payments, view your account or apply for a payment plan with the IRS.

09/29/2025

Heads up! The IRS is phasing out paper checks. Refunds by check end September 30, and payments by check will follow soon.

This week I’ll share the electronic options for receiving refunds and making payments, with pros and cons of each method.

09/27/2025

Grow Your HSA Like a Retirement Account 🌱💰

Your HSA isn’t just for doctor visits and prescriptions. If you don’t need the money now, you can invest it and let it grow tax-free for future medical expenses—even in retirement.

It’s one of the only accounts with a triple-tax advantage:
1. Contributions reduce taxable income
2. Growth and earnings are tax-free
3. Withdrawals for qualified medical expenses are tax-free
4. There is no time limit for getting reimbursed for medical expenses as long as the expenses occur after establishment of the HSA and you can provide documentation

And here’s the bonus—HSAs don’t phase out for higher incomes. Everyone who’s eligible can take advantage.

Start thinking of your HSA as more than a spending account—it can be a powerful long-term savings tool.rl elid

09/25/2025

🌟 Day 3: The Triple Tax Advantage of an HSA 🌟

Did you know an HSA is one of the only accounts that gives you three tax breaks at once?

• Contributions lower your taxable income (or come out pre-tax if through payroll)
• Growth inside the HSA isn’t taxed — interest, dividends, and gains all grow tax-free
• Withdrawals are tax-free when used for qualified medical expenses

That’s a powerful combo that even higher-income earners can use — there’s no income phase-out.

2025 HSA Contribution Limits (per IRS):
– $4,300 for self-only HDHP coverage
– $8,550 for family HDHP coverage
– Extra $1,000 if you’re age 55 or older

And here’s the kicker: your HSA money rolls over every year. If you don’t spend it, you keep it.

👉 Stay tuned for Day 4 — how to use your HSA as a retirement savings tool.

09/24/2025

HSA Series – Part 2: Are You Eligible?

Not everyone can contribute to a Health Savings Account (HSA). To qualify, you must be covered under a High Deductible Health Plan (HDHP).

🔹 An HDHP means your deductible is higher than a traditional plan, and you can’t have other first-dollar coverage (like most secondary insurance).
🔹 You generally cannot be enrolled in Medicare or claimed as someone else’s dependent.
🔹 If you’re not sure whether your plan counts as an HDHP, your healthcare provider or insurance company can confirm for you.

Knowing your eligibility is the first step toward using this powerful tax tool.

Stay tuned for Part 3: How much you can contribute each year and the tax benefits that follow.

Send a message to learn more

09/24/2025

ARE YOU TAKING ADVANTAGE OF AN HSA?

💡 ARE YOU USING ONE OF THE MOST POWERFUL TAX TOOLS AROUND — THE HEALTH SAVINGS ACCOUNT (HSA)?

• Contributions reduce your taxable income (pre-tax or deductible)
• Growth inside the account is tax-free
• Withdrawals for qualified medical expenses are tax-free

That’s the rare “TRIPLE TAX BENEFIT.”

And unlike many tax breaks, HSAs don’t phase out for higher earners — if you qualify, you can use them no matter your income.

👉 In my next post, I’ll cover HOW TO KNOW IF YOU’RE ELIGIBLE to open or contribute to an HSA.