A Matter of Tax

01/26/2026

JANUARY 1, 2026 TAX TRUTH ABOUT

✅ Audits can be random
❌ But they are often triggered by what’s reported on a tax return

Common audit triggers include:
• Income reported that doesn’t match IRS records (W-2s, 1099s)
• High or unusual deductions or credits compared to income
• Repeatedly claiming refundable credits at the high end (CTC, EITC, fuel, education credits)
• Schedule C losses more than 3 years.
• Claiming dependents that conflict with another return
• Industry-specific red flags (cash businesses, mileage-heavy deductions)
• Preparer patterns (returns showing the same questionable credits across many clients)

2. REVIEW (Internal IRS Check)

A review happens when the IRS system flags something that:
• Doesn’t align mathematically or logically
• Can often be corrected without taxpayer involvement

Common review triggers:
• Math errors
• Income or withholding mismatches
• Credit amounts exceeding allowed limits
• Dependent SSNs that don’t align with

3. IDENTITY VERIFICATION (Identity Protection / 5071C / 4883C)

This is not an audit and not a review of credits.

Identity verification is triggered when the IRS wants to confirm YOU filed the return.

Common triggers include:
• Filing from a new address
• Filing a new dependent
• Major changes from previous years
• Someone else attempted to file using your SSN

➡️ The IRS is asking:
“Is this really you?”
Not: “Did you do something wrong

01/26/2026

There are several important updates this year that may affect your refund, credits, and deductions. Here are the biggest changes taxpayers should expect:

* Child Tax Credit Increased:
Families with children under 17 can now claim up to $2,200 per child.

* New Break for Seniors (65+):
Seniors may qualify for an additional $6,000 deduction, $12,000 for a married couple, even when taking the standard deduction. The deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).

* Higher SALT Deduction (For Itemizers):
The state & local tax deduction cap temporarily increased, giving relief to taxpayers in high-tax states. You may qualify to take the Itemized Deduction for 2025 even if you did not qualify in prior years due to the increase in the Standard Deduction. Please remember to bring your mortgage interest statement, property tax bill, itemized list of charitable contributions, medical expenses, etc.

* New Deductions for Tips:
Effective 2025 through 2028, employees and self-employed individuals may deduct qualified tips they received in occupations the IRS identified as “customarily and regularly receiving tips” on or before December 31, 2024, and are reported on a Form W-2, Form 1099, another statement furnished to the individual, or on Form 4137 if the individual directly reports the tips.
“Qualified tips” include voluntary cash or charged tips received from customers, including shared tips.
Maximum annual deduction is $25,000.
For self-employed individuals, deduction cannot exceed net income (before this deduction) from the trade or business where tips were earned.
Phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

* New Deductions for Overtime:
(Employers are not required to report this information on your W2 for 2025. If your Employer does not provide overtime information in Box 14 on your W2, please bring your end of year paystub to support the deduction).

Effective 2025 through 2028, individuals may deduct the portion of qualified overtime pay that exceeds their regular rate of pay (for example, the “half” portion of “time-and-a-half”).
Overtime must be reported on Form W-2, Form 1099, another statement furnished to the individual, or directly by the individual.
Maximum annual deduction is $12,500 ($25,000 for joint filers).
Phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

* Certain Auto Loan Interest:
Effective 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a New qualified vehicle for personal use only that meets other eligibility criteria (GVWR less than 14,000 pounds, Loan origination date after 12/31/24, VIN number required). Lease payments do not qualify.
Maximum annual deduction is $10,000.
Phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).

Please contact me if you have any questions regarding the 2025 filing season.

01/26/2026

07/17/2025

https://gusto.com/resources/articles/taxes/one-big-beautiful-bill-act

Here's what employers and employees need to know about President Trump's One Big Beautiful Bill.

03/02/2024

If you claim an or ACTC, the law requires to hold the tax refund for a period to review. Barring other issues, the first of these refunds should be available by February 27, 2024, if using direct deposit. See www.irs.gov/refundtiming

01/21/2024

Odyssey Wealth Management Group, LLC is hiring a Part-time Client service assistant. 24 hours per week to assist Investment Advisor Representatives. Great opportunity for someone to learn the financial service industry and grow with our practice. We do require candidates to pass FINRA background check as well as fingerprinting. Computer skills and database management experience. Please email us at [email protected] or call 508-867 -3543 for an interview opportunity.

03/17/2023

An reminder that April 1 is the last day to start taking money from Individual Retirement Arrangements (IRAs), 401(k)s and other similar workplace retirement plans for individuals who turned 72 in 2022. The payments, called required minimum distributions (RMDs), are normally made by the end of the year. But those born after Dec. 31, 1949, qualify for the April 1 deadline in their first year.

Visit http://ow.ly/k7BN50NfuR5 for more information and FAQs on RMD.

03/17/2023

Happy Friday!!! 😜

03/17/2023

When it comes to your retirement, don’t leave it all to luck. This , the encourages you to learn the benefits of enrolling in a retirement plan or contributing to an Individual Retirement Account. Don’t think you earn enough to save for retirement? You may be able to qualify for the Saver’s Credit if your income falls within certain limits and you make eligible contributions towards your retirement plan.

Visit http://ow.ly/aCPm50N531W to learn about the tax benefits of saving for .

03/02/2023

Post a review to our profile on Google

01/29/2023

IRS impersonators have been around for a while. But as more people get to know their tricks, they’re switching it up. So instead of contacting you about a tax debt and making threats to get you to pay up, scammers may send you a text about a “tax rebate” or some other tax refund or benefit. He...

01/29/2023

Although we love them like our children, pets do not qualify as dependents no matter how you dress them up. To learn more about who qualifies as a dependent, check out: www.irs.gov/pub929