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12/09/2025

The new additional tax deduction for seniors age 65 and older is effective for tax years 2025 through 2028. You will first be able to claim this deduction when you file your 2025 federal tax return in early 2026.

Key Details of the New Senior Deduction

The "One, Big, Beautiful Bill Act" (OBBBA), signed into law on July 4, 2025, did not eliminate taxes on Social Security benefits but rather introduced a temporary additional deduction to reduce overall taxable income.
Deduction Amount:
Eligible individuals aged 65 and older can claim an additional deduction of up to $6,000. For a married couple where both spouses qualify, the total deduction is $12,000.
Eligibility:
To qualify, a taxpayer must be age 65 or older by December 31 of the tax year.
Income Limits:
The deduction begins to phase out for taxpayers with modified adjusted gross income (MAGI) over $75,000 for single filers and $150,000 for joint filers.
Availability:
This is an "above-the-line" deduction, meaning it is available to both taxpayers who take the standard deduction and those who itemize.

Original Social Security Taxation Rules Still Apply
The existing federal income tax rules for Social Security benefits remain unchanged. A portion of your benefits may still be taxable if your provisional income exceeds certain thresholds:
Up to 50% of your benefits may be taxable if your provisional income is between $25,000 and $34,000 for single filers, or $32,000 and $44,000 for joint filers.
Up to 85% of your benefits may be taxable if your provisional income is more than $34,000 for single filers or $44,000 for joint filers.
The new senior deduction can lower your MAGI, potentially reducing or eliminating the amount of Social Security benefits subject to federal income tax for many eligible individuals.
For more information, you can use the IRS's resources on the new tax law provisions on the IRS website or check your specific information using your personal my Social Security account.

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01/07/2025

Essential tax tips for marriage status changes:

A taxpayer’s filing status generally depends on their being married or unmarried on the last day of the year – which means that a taxpayer's marital status as of December 31, 2024, determines their tax filing options for all of 2024.

For filing purposes, the IRS generally considers taxpayers as married if they are separated but not legally separated or divorced at the end of the year. Marriage status can determine filing requirements, standard deductions, eligibility for certain credits and tax. For exact qualifications and exceptions on filing statuses, review Publication 504, Divorced or Separated Individuals.

Here are a few things taxpayers should do if their marital status changed in 2024.
- Report a name change
- Report any name changes to the Social Security Administration. The name on a person's tax return must match what’s on file at the SSA. If the name doesn't match, it could delay any tax refund. To update information, go to the SSA’s website and look for “Change name with Social Security.” Name changes can also be processed by calling the SSA at 800-772-1213 or by visiting a local SSA office.
Update address
- Notify the U.S. Postal Service, any employers and the IRS of an address change. Taxpayers have several options to notify the IRS of an address change.
- Check withholding
A change in marital status may also affect how much tax should be withheld from the taxpayer’s paycheck. To avoid a surprise at tax time, the taxpayer should use the IRS Tax Withholding Estimator to calculate their withholding and then use that estimate to complete a new Form W-4, Employee’s Withholding Certificate, to give to their employer. Taxpayers can also use Form W-4 to tell an employer not to withhold any federal income tax. To qualify for this exempt status, the taxpayer must have had no tax liability for the previous year and must expect to have no tax liability for the current year.
- Review filing status
Taxpayers who were newly married in 2024 will want to review their filing status options. They can choose to file their federal income taxes jointly or separately each year, so it’s a good idea to figure the tax both ways to find out which makes the most sense. Taxpayers should remember that if a couple is married as of December 31, the law says they're married for the whole year for tax purposes.

More information:
• Publication 505, Tax Withholding and Estimated Tax
• Topic no. 753, Form W-4, Employees Withholding Certificate

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07/09/2024

Beneficial ownership information (BOI) reporting to the Financial Crimes Enforcement Network (FinCEN)

is a federal reporting requirement that went into effect on January 1, 2024. The Corporate Transparency Act (CTA), which was passed by Congress in 2021 as part of the Anti-Money Laundering Act, requires many companies to report information about their beneficial owners to FinCEN. Beneficial owners are the people who ultimately control or own a company, either directly or indirectly.
The purpose of BOI reporting is to make it harder for criminals to hide behind opaque ownership structures, to help establish trust with legitimate businesses, and to contribute to understanding risk exposure.
The reporting requirements are as follows:

• Any reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.

• Any reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.

• Companies created or registered prior to January 1, 2024, have until January 1, 2025, to file.

• Any reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.
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Filing is free, secure, and simple, and companies only need to submit a report once unless they need to update or correct information. However, FinCEN has warned of fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements. These scams may include correspondence requesting payment or asking the recipient to click on a URL or scan a QR code. FinCEN does not send correspondence requesting payment to file BOI, and individuals should not send money in response to any mailing that claims to be from FinCEN or another government agency.

FinCEN launched the BOI E-Filing website for reporting beneficial ownership information on January 1, 2024.

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07/01/2024

Energy efficient home improvements could help people reduce energy bills and taxes.

Homeowners who make improvements like replacing old doors and windows, installing solar panels or upgrading a hot water heater may qualify for home energy tax credits.

Who can claim the credits:
Taxpayers making improvements to their principal, or in some cases, secondary residence may be eligible for these credits. In some cases, renters may also be able to claim specific costs. Landlords can't use these credits for improvements made to any homes they rent out. See Form 5695 instructions for more information.

There are two tax credits to help offset costs of making energy efficient improvements:

Energy Efficient Home Improvement Credit:
Taxpayers can claim the Energy Efficient Home Improvement Credit only for improvements, additions or renovations to an existing home. It doesn't apply to newly constructed homes. Qualifying costs may include:
• Exterior doors, windows, skylights and insulation materials.
• Central air conditioners, water heaters, furnaces, boilers and heat pumps.
• Biomass stoves and boilers.
• Home energy audits.
The amount of the credit taxpayers can take is a percentage of the total improvement expenses in the year of installation:
• 2023 through 2032: 30%, up to a maximum of $1,200 annually.
• Biomass stoves and boilers have a separate annual credit limit of $2,000 annually with no lifetime limit.

Residential Clean Energy Credit:
Taxpayers can also claim the Residential Clean Energy Credit for qualifying costs for either an existing home or a newly constructed home. Qualifying costs may include:
• Solar, wind and geothermal power generation equipment.
• Solar water heaters.
• Fuel cells.
• Battery storage.
The amount of the credit taxpayers can take is a percentage of the total improvement expenses in the year of installation:
• 2022 - 2032: 30%, no annual maximum or lifetime limit.
• 2033: 26%, no annual maximum or lifetime limit.
• 2034: 22%, no annual maximum or lifetime limit.

To claim these credits, taxpayers should file Form 5695, Residential Energy Credits, with their tax return.

Beware of scams
Taxpayers should know what these credits can do for them and be careful of exaggerated claims from companies trying to get their business.

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05/29/2024

Summer activities that could affect people’s tax returns next year:

While summer is a time for fun, it’s never the wrong time to thinking about taxes – and some of those summer activities could have an impact. Here are a few summertime activities and tips on how taxpayers should consider them for filing season.

Marriage
Wedding season is upon us, and newlyweds can make their tax filing easier by taking two simple steps now:
• First, report any name change to the Social Security Administration.
• Next, notify the United States Postal Service, employers and the IRS of any address change. To officially change their mailing address with the IRS, taxpayers must compete and submit Form 8822, Change of Address. See page 2 of the form for detailed instructions.

Summer camp
If a taxpayer is sending a child to summer camp, the cost may count toward the Child and Dependent Care Credit.
Business travel
Kids may have the summer off, but parents generally don't – and business travel happens year-round. Tax deductions are available for certain people who travel away from their home or main place of work for business reasons. Whether a business traveler is away for a few nights or all summer long, it’s important for them to remember the tax rules related to business travel.

Part-time work
While summertime and part-time workers may not earn enough to owe federal income tax, they should file a tax return to get any refund they may be owed. Part-time and seasonal workers can visit IRS.gov to learn more about who should file a tax return.
Some taxpayers earn summer income with a side hustle or doing gig work. They can visit the Gig Economy Tax Center at IRS.gov to learn how participating in the gig economy can affect their taxes. If taxpayers are paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. For more information, go to IRS.gov/1099k.

Home improvements
The IRS has information to help taxpayers take advantage of potential tax benefits for home improvements. If taxpayers make qualified energy efficient improvements to their home after Jan. 1, 2023, they may qualify for a tax credit up to $3,200. They can claim the credit for improvements made through 2032.
These types of improvements include Energy Efficient Home Improvement Credits for things like water heaters, exterior windows and doors and heating and air conditioning installations. Residential Clean Energy Credits are available for taxpayers who install solar water heaters, fuel cells and battery storage or solar, wind and geothermal power generation. Taxpayers can visit the Home Energy Tax Credits page on IRS.gov to learn more.
More Information
How to claim these credits can be found in these step-by-step guides:
• Energy efficient home improvements
• Home energy audit
• Residential energy property

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01/16/2024

The Taxpayer Bill of Rights protects all taxpayers year-round

The Taxpayer Bill of Rights is the 10 rights all taxpayers have any time they interact with the IRS. These rights cover a wide range of topics and issues, and they explain what taxpayers can expect if they need to work with the IRS on a tax matter. This includes when a taxpayer files a return, pays taxes, responds to a letter or notice, goes through an audit or appeals an IRS decision.

Taxpayer Bill of Rights

Taxpayers have a right to:

Be Informed – The right to know what to do to comply with the tax laws.

Quality Service – The right to receive prompt, courteous and professional assistance when working with the IRS.

Pay No More than the Correct Amount of Tax – The right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.

Challenge the IRS's Position and Be Heard – The right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions.

Appeal an IRS Decision in an Independent Forum – The right to a fair and impartial administrative appeal of most IRS decisions.

Finality – The right to know when the IRS has finished an audit.

Privacy – The right to expect that any IRS inquiry, examination or enforcement action will comply with the law and be no more intrusive than necessary.

Confidentiality – The right to expect that any information taxpayers provide to the IRS will not be disclosed unless authorized by the taxpayer or by law.

Retain Representation – The right to retain an authorized representative of the taxpayer’s choice to represent them when working with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation.

A Fair and Just Tax System – The right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay or ability to provide information timely.

More Information:
Taxpayer Advocate Service

07/24/2023

The IRS advises tax pros and taxpayers to be on the lookout for a summer surge of tax scams. The latest email schemes touch on a variety of topics, but many center around promises about a third round of Economic Impact Payments. The IRS is also receiving reports of emails urging people to "Claim your tax refund online," and text messages that the person's tax return was "banned" by the IRS. These scams are riddled with spelling errors and awkward phrasing, but they consistently try to entice people to click on a link.

02/02/2023

The benefits of having a tax refund direct deposited

Receiving a tax refund is happy news to any taxpayer; getting it quickly is even better. Direct deposit is the safest and most convenient way to receive a tax refund. The IRS encourages taxpayers to file when they are ready and choose direct deposit to receive any refund they may be owed.

Benefits of choosing IRS direct deposit:

It's fast. The fastest way for taxpayers to get their refund is to file electronically and choose direct deposit. Visit IRS.gov for details about IRS Free File, Free File Fillable Forms, free tax return preparation and more. Taxpayers who file a paper return can also choose direct deposit, but it will take longer to process the return and get a refund.
It's secure. Since refunds are electronically deposited, there's no risk of having a paper check stolen or lost in the mail.
It's easy. Taxpayers can simply follow the instructions when selecting direct deposit as a refund method and enter their account information as directed. They must enter the correct account and routing numbers when they file.
It provides options. Taxpayers can split a refund into several financial accounts. These include checking, savings, health, education and certain retirement accounts. They should use IRS Form 8888, Allocation of Refund, Including Savings Bond Purchases to deposit a refund in up to three accounts. This form cannot be used to designate part of a refund to pay tax preparers.
Taxpayers should deposit refunds into U.S. bank accounts in their own name, their spouse's name or both. They should avoid making a deposit into accounts owned by others. Some banks require both spouses' names on the account to deposit a tax refund from a joint return. Taxpayers should check with their bank for direct deposit rules.

Get a bank account
Taxpayers who don't have a bank account can visit the FDIC website for information on banks that let them open an account online and how to choose the right account. Veterans can use the Veterans Benefits Banking Program for access to financial services at participating banks.

Mobile apps may be an option
Some mobile apps and prepaid debit cards allow for direct deposit of tax refunds. They must have routing and account numbers associated with them that can be entered on a tax return. Taxpayers should check with the mobile app provider or financial institution to confirm which numbers to use.

Taxpayers must have their routing and account numbers for direct deposit available when they are ready to file. The IRS can't accept this information after a return is filed.

There is a limit of three direct deposit refunds made into a single financial account or prepaid debit card.

01/27/2023

Taxpayers should avoid these common mistakes when they file their tax return.

Most of the common errors taxpayers make on their tax returns are easily avoidable. By carefully reviewing their return, taxpayers can save time and effort by not having to correct it later. Filing electronically also helps prevent mistakes. Tax software does the math, flags common errors and prompts taxpayers for missing information. It can also help taxpayers claim valuable credits and deductions.

Here are some of the mistakes to avoid:

Filing too early.
While taxpayers should not file late, they also should not file prematurely. They should wait to file until they’re certain they’ve received all their tax reporting documents, or they risk making a mistake that may lead to a processing delay.

Missing or inaccurate Social Security numbers.
Each SSN on a tax return should appear exactly as printed on the Social Security card.

Misspelled names.
The names of all taxpayers and dependents listed on the return should match the names on their Social Security cards.
Inaccurate information.
Taxpayers should carefully enter any wages, dividends, bank interest and other income they received to make sure they report the correct amounts. This includes any information taxpayers need to calculate credits and deductions.

Incorrect filing status.
Some taxpayers choose the wrong filing status. Publication 501 has detailed information about filing statuses.

Math mistakes.
Math errors are some of the most common mistakes. They range from simple addition and subtraction to more complex calculations. Taxpayers should always double check their math. Better yet, tax prep software will check it automatically.

Figuring credits or deductions.
Taxpayers can make mistakes figuring things like their earned income tax credit, child and dependent care credit and child tax credit. Tax software will calculate these credits and deductions and include any required forms and schedules.

Incorrect bank account numbers.
Taxpayers who are due a refund should choose direct deposit. This is the fastest way for them to get their money. However, taxpayers need to make sure they use the correct routing and account numbers on their tax return.

Unsigned forms.
An unsigned tax return isn't valid. In most cases, both spouses must sign a joint return. Exceptions may apply for members of the armed forces or other taxpayers who have a valid power of attorney

01/09/2023

Taxpayers should hang up if tax season scammers come calling

The tax filing season is a popular time for scammers to call and try to dupe unsuspecting taxpayers. These thieves often make threatening or alarming calls posing as the IRS to try to steal taxpayer money or personal information.

However, it’s easy for people to recognize this scam by knowing how the IRS contacts taxpayers.

The IRS will never:

Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. Threaten to immediately bring in local police or other law enforcement groups to have the taxpayer arrested for not paying.
Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
Call unexpectedly about a tax refund.
Taxpayers who receive these phone calls should:

Record the number and then hang up the phone immediately.
Report the call by visiting the Hotline page of Treasury Inspector General for Tax Administration and using an IRS Impersonation Scam Reporting form or by calling 800-366-4484.
Forms to report fraud are available on the Hotline page of Treasury Inspector General for Tax Administration website. Taxpayers just click the appropriate option under “IRS Scams and Fraud” and follow the instructions.
Report the number to [email protected] and put "IRS Phone Scam" in the subject line.