SM Tax & Bookkeeping, LLC

10/27/2026

Two months left in 2026, and your retirement contributions may be the simplest tax move you haven't made yet.

The IRS raised the 2026 limits. You can put up to $24,500 of your pay into a 401(k), 403(b), governmental 457 plan or the federal Thrift Savings Plan. At age 50 or older you can add a catch-up of up to $8,000. If you're 60 to 63, that catch-up rises to $11,250, as long as your plan allows catch-ups.

IRAs: up to $7,500 for traditional and Roth combined ($8,600 if you're 50 or older), or your taxable compensation for the year if that's less. You have until the filing deadline (generally April 15, 2027, extensions not included) to make 2026 IRA contributions. Just tell your IRA provider which year the money is for. Roth IRA eligibility phases out at $153,000–$168,000 of income for single and head of household filers and $242,000–$252,000 for married filing jointly.

Workplace plan contributions come out of your paycheck, so the last paychecks of the year are your window. Check your contribution rate with HR or payroll now. If your income is low to moderate, the Saver's Credit can be worth up to $1,000 ($2,000 married filing jointly) for 2026, with AGI up to $40,250 single, $60,375 head of household or $80,500 married filing jointly.

Pre-tax, Roth or both? The right mix depends on your whole return. SM Tax & Bookkeeping is CPA-led, has been in business 4 years and has served 100 clients. We'll review your options with you before year-end so your 2026 return holds no surprises.

📊 See how we work: https://www.dropbox.com/scl/fi/vxcwnzulb26l65r1covac/Tax-Presentation.pptx?rlkey=ccrtkw1u82r45glkgm30atwud&e=1&dl=0
📅 Book your free consult: https://tinyurl.com/bea8tasa

General information only, not tax advice for your situation. Source: IRS.gov

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10/26/2026

Side hustle or hobby? The IRS treats them very differently.

The IRS says a business operates to make a profit, while a hobby is for pleasure or recreation. No single factor decides it. The IRS looks at things like whether you run the activity in a businesslike way with complete, accurate books and records, how much time and effort you put in, whether you depend on it for income, whether you've changed methods to improve profitability, whether it has made a profit in some years, and whether losses are beyond your control or normal for a startup phase.

Why it matters: losses from an activity not engaged in for profit can't be used to offset your other income. Hobby income is still taxable and must be reported (on 2025 returns, Schedule 1 of Form 1040, line 8j), while a sole proprietor's business income and expenses go on Schedule C.

Generally, an activity is presumed to be for profit if it makes a profit in at least 3 of 5 consecutive tax years (2 of 7 for horse breeding, training, showing or racing). And payment apps may send you a Form 1099-K whether it's a hobby or a business. That income still has to be reported.

Year-end is a good time to look at how your side activity is set up and documented. SM Tax & Bookkeeping is CPA-led, with 4 years in business and 100 clients served. We can help you review your records and report your activity correctly.

📊 See how we work: https://www.dropbox.com/scl/fi/vxcwnzulb26l65r1covac/Tax-Presentation.pptx?rlkey=ccrtkw1u82r45glkgm30atwud&e=1&dl=0
📅 Book your free consult: https://tinyurl.com/bea8tasa

General information only, not tax advice for your situation. Source: IRS.gov

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10/25/2026

Get help paying for Marketplace health insurance? One 2026 change could shrink your refund.

If you get advance payments of the Premium Tax Credit, the IRS compares what was paid to your insurer with the credit you actually qualify for, based on your real income and family size for the year. You reconcile the two on Form 8962, using the Form 1095-A your Marketplace sends you.

Here's what's new: starting with tax year 2026, the repayment caps are gone. If your advance payments were more than your credit, you repay the full excess when you file. Before, many households had a limit on how much they had to pay back.

A few more rules: if advance Premium Tax Credit payments (APTC) were made for you, you must file a return and Form 8962, even if you otherwise wouldn't. Married couples filing separately generally can't claim the credit. And the best way to avoid a surprise is to report changes to the Marketplace promptly, like income, a new job, a move, marriage or divorce, a birth or adoption, or new coverage eligibility.

Open enrollment season is a good time to get your income estimate right. We're a CPA-led firm, 4 years in business and 100 clients served, and we can help you project your 2026 income and reconcile your credit correctly when you file.

📊 See how we work: https://www.dropbox.com/scl/fi/vxcwnzulb26l65r1covac/Tax-Presentation.pptx?rlkey=ccrtkw1u82r45glkgm30atwud&e=1&dl=0
📅 Book your free consult: https://tinyurl.com/bea8tasa

General information only, not tax advice for your situation. Source: IRS.gov

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10/23/2026

Opened a business this year, or about to? Some of what you spent getting ready may be deductible.

The IRS calls these start-up costs: what you pay before the business opens. Think market research, ads announcing your opening, travel to line up suppliers or customers, training new employees, and consultant fees.

You can choose to deduct up to $5,000 of start-up costs, plus up to $5,000 of organizational costs, in the year the business begins. Each $5,000 limit shrinks dollar for dollar once those costs go over $50,000. Anything left is deducted gradually over 180 months, starting the month the business opens.

Some things don't count. Interest, taxes and research costs aren't start-up costs, and equipment and other assets are generally recovered through depreciation. The start date matters too: the 180 months run from the month the business actually begins, not from your first purchase.

Sorting these costs correctly now sets up deductions that can last 15 years. SM Tax & Bookkeeping is CPA-led, has been in business 4 years, and has served 100 clients. If you've just opened or are about to, we can help you get your start-up costs right before you file.

📊 See how we work: https://www.dropbox.com/scl/fi/vxcwnzulb26l65r1covac/Tax-Presentation.pptx?rlkey=ccrtkw1u82r45glkgm30atwud&e=1&dl=0
📅 Book your free consult: https://tinyurl.com/bea8tasa

General information only, not tax advice for your situation. Source: IRS.gov

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10/22/2026

Paying for child care so you can work? Your 2026 tax credit just got bigger.

Starting with tax year 2026, the child and dependent care credit can cover up to 50% of qualifying care costs, up from 35%. The maximum credit is $1,500 for one qualifying person and $3,000 for two or more, based on up to $3,000 or $6,000 of expenses. The 50% rate applies at AGI of $15,000 or less. It steps down to 35% as income rises, then declines again above $75,000 ($150,000 married filing jointly), but never goes below 20%.

Who counts: a dependent under 13, or a spouse or dependent of any age who can't care for themselves, who lived with you more than half the year. The care has to let you (and your spouse, if filing jointly) work or look for work. The credit is nonrefundable. It can lower your tax to zero, but it won't create a refund on its own.

Have a dependent care FSA at work? The 2026 limit on tax-free employer dependent care benefits rose to $7,500 ($3,750 married filing separately). You can't count the same expenses for both the FSA and the credit. Keep your provider's name, address and SSN or EIN, because you'll need them on Form 2441.

Getting the FSA and the credit to work together takes some planning. SM Tax & Bookkeeping is a CPA-led firm with 4 years in business and 100 clients served. We'll walk through your numbers with you and make sure your return is right.

📊 See how we work: https://www.dropbox.com/scl/fi/vxcwnzulb26l65r1covac/Tax-Presentation.pptx?rlkey=ccrtkw1u82r45glkgm30atwud&e=1&dl=0
📅 Book your free consult: https://tinyurl.com/bea8tasa

General information only, not tax advice for your situation. Source: IRS.gov

10/16/2026

Own a sole proprietorship, partnership or S corporation? You may be able to deduct up to 20% of your business income, and that deduction is now permanent.

The qualified business income (QBI) deduction lets eligible owners deduct up to 20% of their QBI, plus 20% of qualified REIT dividends and publicly traded partnership income. You don't have to itemize to claim it. Income earned through a C corporation or as an employee doesn't qualify, and neither do S corp reasonable compensation, partnership guaranteed payments or capital gains.

New for 2026: the deduction no longer expires, and there's a $400 minimum deduction if you have at least $1,000 of QBI from an active business you materially participate in.

Higher earners face extra limits based on the type of business, W-2 wages paid and qualified property. For 2026, those limits begin above $201,750 of taxable income ($403,500 married filing jointly) and phase in fully by $276,750 ($553,500 joint). The deduction is figured on Form 8995 or 8995-A.

Year-end is a good time to know where your business income stands. As a CPA-led firm with 4 years in business and 100 clients served, we can help you see whether your business qualifies and how the limits apply to you before you file.

📊 See how we work: https://www.dropbox.com/scl/fi/vxcwnzulb26l65r1covac/Tax-Presentation.pptx?rlkey=ccrtkw1u82r45glkgm30atwud&e=1&dl=0
📅 Book your free consult: https://tinyurl.com/bea8tasa

General information only, not tax advice for your situation. Source: IRS.gov

10/14/2026

Selling investments before year-end? Know these IRS rules before you click "sell."

How long you held it matters. Hold an asset more than one year and your gain or loss is long-term, which is generally taxed at lower capital gains rates. Hold it one year or less and it's short-term, which is taxed as ordinary income.

Losses can work for you. Capital losses offset capital gains, and if losses are bigger, you can deduct up to $3,000 of the excess against other income ($1,500 if married filing separately). Anything above that carries forward to later years. Losses on personal-use property, like your home or car, aren't deductible.

Watch the wash sale rule. If you sell stock or securities at a loss and buy substantially identical ones within 30 days before or after the sale, you generally can't deduct that loss now. Instead, it's generally added to the cost basis of the new shares.

Every sale goes on Form 8949 and Schedule D, even if you can't use all your losses this year.

Want to see how a sale fits your whole tax picture while there's still time left in 2026? SM Tax & Bookkeeping is CPA-led, 4 years in business, with 100 clients served. Let's go over your numbers together.

📊 See how we work: https://www.dropbox.com/scl/fi/vxcwnzulb26l65r1covac/Tax-Presentation.pptx?rlkey=ccrtkw1u82r45glkgm30atwud&e=1&dl=0
📅 Book your free consult: https://tinyurl.com/bea8tasa

General information only, not tax advice for your situation. Source: IRS.gov

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10/13/2026

Before you shred anything this year, know what the IRS expects your business to keep.

The IRS doesn't require a special system. Any method that clearly shows your income and expenses works. What counts is the paper trail: sales slips, invoices, receipts, deposit slips, canceled checks, and credit card and account statements. Electronic records have to meet the same requirements as paper ones.

How long should you keep them? Generally 3 years after you file. Keep them 6 years if you left out income totaling more than 25% of the gross income on your return, and 7 years if you claim a loss from worthless securities or a bad debt deduction. If you never filed a return, keep them indefinitely.

Records for property like equipment, vehicles and buildings are different. Keep them until the limitations period ends for the year you sell or otherwise dispose of the property, because you need them to figure depreciation and any gain or loss. Before you throw anything out, check whether your insurer or lender requires you to keep it longer.

Good records make tax time faster and support every deduction you claim. Our CPA-led firm has spent 4 years helping 100 clients keep organized books and well-supported returns. If you'd like help setting up a system that holds up, let's talk.

📊 See how we work: https://www.dropbox.com/scl/fi/vxcwnzulb26l65r1covac/Tax-Presentation.pptx?rlkey=ccrtkw1u82r45glkgm30atwud&e=1&dl=0
📅 Book your free consult: https://tinyurl.com/bea8tasa

General information only, not tax advice for your situation. Source: IRS.gov

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10/12/2026

A six-digit number can stop someone else from filing a tax return in your name.

The IRS Identity Protection PIN (IP PIN) is a six-digit number known only to you and the IRS. It helps prevent anyone else from filing a federal return using your Social Security number or ITIN. Anyone who can verify their identity can get one, even if you aren't required to file. Parents and guardians can request one for dependents.

The fastest way to get one is through your IRS Online Account. If you can't verify online, you can use Form 15227 if your last filed return showed AGI under $84,000 ($168,000 married filing jointly), or you can book an in-person appointment at an IRS Taxpayer Assistance Center.

Know the rules: an IP PIN is valid for one calendar year, and you get a new one each year. You need it on every federal return you file that year, including prior-year returns. If it's missing or wrong, an e-filed return gets rejected. If you enrolled online, you'll look up your new PIN online each year. It's generally available there from mid-January to mid-November.

The IRS never asks for your IP PIN by phone, email or text. Share it only with your tax preparer, and only when you're ready to sign and file.

Getting ready for the 2027 filing season? SM Tax & Bookkeeping is a CPA-led firm with 4 years in business and 100 clients served. We'll help you file accurately and keep your information protected.

📊 See how we work: https://www.dropbox.com/scl/fi/vxcwnzulb26l65r1covac/Tax-Presentation.pptx?rlkey=ccrtkw1u82r45glkgm30atwud&e=1&dl=0
📅 Book your free consult: https://tinyurl.com/bea8tasa

General information only, not tax advice for your situation. Source: IRS.gov

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10/11/2026

Planning holiday gifts for clients? The IRS caps the deduction at $25 per person.

Businesses can deduct no more than $25 of business gifts given directly or indirectly to each person during the tax year. Send a client a $100 gift basket, and only $25 is deductible.

Some costs don't count toward the $25: incidental costs like engraving, packaging, insuring and mailing, as long as they don't add substantial value to the gift. Branded items costing $4 or less (your name clearly and permanently imprinted, one of many identical items you hand out widely) aren't counted, and neither are signs, display racks or other promotional material for the recipient's business premises.

Watch the line between gifts and entertainment. Per the IRS, anything that could be either is generally treated as entertainment, which is generally not deductible. One exception: packaged food or beverages the customer will use later are treated as a gift.

Employees follow different rules. A holiday party for employees is an exception to the entertainment rules, and low-value, non-cash holiday gifts can be a tax-free de minimis benefit. But cash, gift cards and gift certificates are never de minimis, no matter how small, and belong in the employee's pay.

Year-end is when small choices like these add up. As a CPA-led firm with 4 years in business and 100 clients served, we help business owners plan year-end spending with the rules in mind, before the receipts pile up.

📊 See how we work: https://www.dropbox.com/scl/fi/vxcwnzulb26l65r1covac/Tax-Presentation.pptx?rlkey=ccrtkw1u82r45glkgm30atwud&e=1&dl=0
📅 Book your free consult: https://tinyurl.com/bea8tasa

General information only, not tax advice for your situation. Source: IRS.gov

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