Dr. Sheri Thomas, CPA

07/20/2026

Form 1099-K – Did You Know?

If you receive a Form 1099-K, review it for payments that may not be taxable, such as reimbursements from friends or family. If these payments were mistakenly included, ask the payment processor to issue a corrected form. Keep in mind that some transactions involving personal items may still have tax consequences, particularly if you sold an item for more than you paid for it.

07/15/2026

🚗 IRS Changed the Mileage Rate Mid-Year — Don't Miss This!

The IRS made a rare mid-year change to the standard mileage rates for 2026. That means there isn't one mileage rate this year—there are two.

Business Mileage

✅ January 1 – June 30: 72.5¢ per mile
✅ July 1 – December 31: 76¢ per mile

Medical & Moving Mileage

✅ January 1 – June 30: 20.5¢ per mile
✅ July 1 – December 31: 23.5¢ per mile

Charitable Mileage

✅ Remains 14¢ per mile all year.

Why this matters

When it's time to prepare your tax return, I can't simply multiply your total annual business miles by one rate. Your mileage must be split between the first and second halves of the year so the correct IRS rates can be applied.

Take 2 minutes today

If you use your vehicle for business and didn't record your odometer on June 30, go out to your vehicle today and write down the current odometer reading for each business vehicle.

While it won't replace a June 30 reading, it creates an important reference point that can help accurately reconstruct your mileage records for the remainder of the year.

📌 Good mileage records can save you hundreds—or even thousands—of dollars at tax time. Don't wait until year-end to get organized!

07/14/2026

Increased Standard Mileage Rates Starting July 1, 2026

Due to higher fuel prices, the IRS has increased the standard mileage rate for business driving to 76 cents per mile for mileage incurred on or after July 1, 2026. The rates for medical travel and eligible moving expenses have also increased to 23.5 cents per mile.

The charitable mileage rate remains unchanged at 14 cents per mile, while the previously announced 2026 rates continue to apply to mileage incurred before July 1.

07/09/2026

Trump Accounts Are Here! Here's Who Can Contribute 🇺🇸💲

The new Trump Accounts are designed to give children a financial head start by investing in broad U.S. stock index funds. While the federal government provides the initial funding for eligible children, there are several other ways these accounts can grow.

Here's who can contribute:

💵 Federal Government

Eligible children born between 2025 and 2028 receive a one-time $1,000 contribution to open the account.

👨‍👩‍👧 Parents, Grandparents & Others

Family members and friends can contribute up to $5,000 per year (combined annual limit).

🏢 Employers

Employers may contribute up to $2,500 per year on behalf of an employee's child (subject to the overall annual contribution limit).

🎁 Businesses & Charitable Foundations

Several organizations have already pledged to help fund these accounts, including:

➡️Michael & Susan Dell Foundation – $250 for up to 25 million eligible children.
➡️Dalio Foundation – $250 for qualifying children in Connecticut.
➡️Micron Technology – $250 for eligible children in certain Idaho communities, plus matching contributions for employees' children.
➡️Gwynne Shotwell (President of SpaceX) and her husband – Approximately $325 million in SpaceX stock to benefit more than 2 million children, with a focus on lower-income communities in central Texas.

📈 Bottom Line

Depending on eligibility, a child's Trump Account may receive contributions from:

✅ The federal government
✅ Parents and grandparents
✅ Employers
✅ Private businesses
✅ Charitable foundations
✅ Philanthropists

The earlier a child begins investing, the more time compound growth has to work. These accounts are intended to help families build long-term wealth and give children a stronger financial foundation for the future.

07/06/2026

Employer-Provided Childcare Tax Credit – Did You Know?

Businesses that offer childcare benefits to employees may qualify for the Employer-Provided Childcare Tax Credit for some of the expenses involved. Eligible costs may include acquiring, constructing, or improving a childcare facility, operating an on-site childcare program, contracting with a qualified childcare provider, or paying for childcare resource and referral services.

Beginning in 2026, the credit generally equals 40% of qualified childcare expenditures (or 50% for eligible small businesses) plus 10% of qualified childcare resource and referral expenses. The maximum annual credit has also increased to $500,000, or $600,000 for eligible small businesses.

06/29/2026

Digital Asset Tax Reporting – Did You Know?

If you use a broker for digital asset transactions, such as selling, exchanging, or otherwise disposing of cryptocurrency or other digital assets, you may receive Form 1099-DA. Keep this form with your tax records, as you will need it to accurately report those transactions on your tax return.

06/22/2026

New IRS Portal for Reporting Fraud and Scams

The IRS has launched a new portal that makes it easier to report instances of tax fraud, identity theft, IRS impersonation and other tax-related scams. On the new webpage (link below), people and businesses can report:

- Fake IRS phone calls, emails, and text and social media messages. Scammers posing as government agents often threaten people with arrest unless they submit immediate payments, often in a specific format like gift cards. The IRS does not operate in this way.
- Suspected tax fraud, such as tax evasion schemes or illegal use of offshore accounts.
- Identity theft, which should always be reported to the IRS immediately, even if other government and law enforcement agencies know about the crime.
- Suspicious tax preparation practices, such as a paid tax preparer refusing to sign your return or altering your income figures.

Citizen reporting often plays a critical role in catching scammers and bringing them to justice. This new system makes the process of filing a report less confusing and much more convenient.

IRS Fraud Reporting Site: https://www.irs.gov/help/report-fraud

06/15/2026

If you signed up for a Trump Account for your child, the app is now available! 🇺🇸📱

✅ Download the app

✅ Locate your account

✅ Complete your setup

💰 Funding is expected to begin in July.

👶 Trump Accounts are available for children under age 18.

Haven't signed up yet? There's still time! ⏰ You can still create an account at TrumpAccounts.gov.

🚀 Don't wait until funding starts—get everything set up now so you're ready when the deposits begin! 🇺🇸💵

Trump Accounts provide eligible American children with tax-advantaged investment accounts courtesy of President Donald J. Trump.

06/15/2026

IRS Offer in Compromise Program – Did You Know?

People who cannot pay their tax bills in full may have options to resolve the situation. One of these options is the Offer in Compromise (OIC) program, which allows eligible taxpayers to settle their debts with the IRS for less than the full amount owed.

Anyone considering an OIC should first check whether they qualify using the IRS Pre-Qualifier tool online (link below). Eligible taxpayers may then submit an application. In most cases, the application must be accompanied by a $205 fee and an initial payment toward the tax debt, although these requirements may be waived for lower-income applicants.

An OIC application requires detailed financial information and must be carefully prepared. Beware of aggressive ads promising to settle tax debts quickly for a small fraction of the amount owed. Companies behind these ads, often referred to as OIC mills, may charge substantial fees while submitting applications for people who have little chance of qualifying. A trusted tax professional can help ensure that an OIC application is complete, accurate, and has a reasonable chance of acceptance.

OIC Pre-Qualifier Online Tool: https://irs.treasury.gov/oic_pre_qualifier/

06/14/2026

🏡 Should You Pay Off Your Mortgage Before You Retire?

There isn't a one-size-fits-all answer. For some retirees, entering retirement mortgage-free provides tremendous peace of mind and lowers monthly expenses. For others, keeping a low-interest mortgage and leaving more money invested may make better financial sense.

Before making a decision, ask yourself:

✅ What is your mortgage interest rate?
✅ Where would the payoff money come from?
✅ Would paying off the mortgage improve your peace of mind?

Paying off your mortgage can reduce monthly expenses, protect against market downturns early in retirement, and provide a sense of financial security.

However, using too much cash to eliminate a low-interest mortgage can leave you "house rich and cash poor," reduce your emergency reserves, and potentially create unnecessary taxes if retirement accounts are used to fund the payoff.

My general advice: don't make the decision based solely on the math. Consider your cash flow, taxes, emergency savings, and your personal comfort level.

The happiest retirees often value financial peace of mind just as much as maximizing investment returns.