https://www.taxwiz.net/blog/ Read the latest articles from England Financial Corporation en-us https://www.taxwiz.net/blog/game-set-tax-the-parent8217s-playbook-for-sports-expenses-deductions-and-nil/46762 https://www.taxwiz.net/blog/game-set-tax-the-parent8217s-playbook-for-sports-expenses-deductions-and-nil/46762 Article Highlights: Sports Expenses As a Child‑Care Expense Charitable Contributions Volunteering Parents Use of an Asset by a Charity Medical Expense Exception When a Child's Sport Becomes a Business Recordkeeping and Practical Guidance A child's and their parent's sports expenses, from registration fees and travel to equipment and volunteer time, sit at the intersection of personal, medical, charitable and business tax rules. For tax‑minded parents the key is sorting each cost into the correct box, documenting it carefully, and understanding the limited circumstances when a deduction or credit is available. This article walks through the major categories: possible child‑care treatment, charitable contributions and volunteer out‑of‑pocket expenses, medical‑expense exceptions, and when a child's sport activity can be treated as a business. As a Child‑Care Expense: There are limited situations when sports costs will qualify. The child and dependent care credit (and associated employer‑provided dependent care benefits) is aimed at expenses that enable a parent (or parents) to work or look for work. Eligible care is generally custodial care for a qualifying individual, most commonly a child under age 13. What Counts: Fees for day camps and similar custodial programs generally do qualify as dependent‑care expenses if the care is primarily custodial and not mainly educational. Day camps that provide supervision during work hours often meet the test. Overnight camps are not eligible. What Does Not Count: Tuition for lessons, private coaching, sports camps that are primarily instructional (i.e., teaching athletic skill rather than providing care), summer school and tutoring are treated as educational and therefore do not qualify. Likewise, kindergarten or private school tuition is not eligible. If a program combines athletic instruction and custodial care, only the portion of the cost allocable to custodial care is eligible. This requires reasonable allocation and substantiation in the event of a tax audit. Example: paying for a weeklong day camp whose primary purpose is supervised childcare for working parents is likely eligible for the credit; paying for an elite week‑long skills camp where most time is instruction rather than supervision generally is not. Charitable Contributions: Donations to youth sports nonprofits and quid pro quo payments: Cash donations: parents who make true gifts of money to a qualified 501(c)(3) youth sports organization can claim an itemized charitable deduction for the donated amount (subject to the usual AGI limits and substantiation rules). If the taxpayer receives a benefit in return — e.g., a ticket to a fundraiser or a uniform — only the amount that exceeds the fair market value of the benefit is deductible (a quid pro quo contribution). Payments to Participate: Fees paid to register a child for a nonprofit's program are usually payments for services (considered program fees) rather than pure charitable gifts. If the registration is essentially a payment for admission or participation, it is not a deductible charitable contribution. Where a program has a subsidized 'scholarship' option or a voluntary donation component, only bona fide voluntary gifts to the nonprofit qualify. Substantiation: Get the organization's name, EIN, the amount, and contemporaneous written acknowledgement for any single donation of $250 or more. Document any benefits received and the fair market value estimate for non-cash donations. Volunteering Parents: Unreimbursed Out‑of‑Pocket Expenses: Deductible Volunteer Expenses: While the value of donated time or services is not deductible, many out‑of‑pocket costs incurred while volunteering for a qualified charity are deductible as charitable contributions. Examples include: Supplies and equipment purchased for the nonprofit (e.g., marking cones, field‑maintenance supplies) that you donate. Uniforms required by the organization that are not suitable for everyday wear. Travel costs incurred while performing volunteer duties (e.g., transporting equipment or players or traveling between sites). For automobile use, volunteers generally may deduct either actual out‑of‑pocket costs or charitable mileage rate set by Congress, which has been 14 cents per mile for many years. A mileage deduction isn't allowed if the volunteer's own child was among those being driven Lodging and meals when the travel is away from home overnight for the charity (subject to the usual business‑vs‑personal tests and substantiation). What is Not Deductible: The fair rental value of allowing a charity to use your property (see next section), and the value of your time. The costs of items purchased specifically for use by your child participating in the activity (e.g., a baseball glove or uniform) aren't deductible. Substantiation: Keep receipts, mileage logs showing date, purpose, miles driven and the charity's name, and written acknowledgements for donated items. Use of an Asset by a Charity: No deduction is allowed for mere use. Core rule: allowing a charity to use an asset you own (lending your field, permitting a nonprofit to use your boat, computer or home for activities) is not the same as donating the asset. The IRS generally disallows a charitable deduction for the value of the use of property. Donation vs. Use: Deductible: If you transfer ownership of tangible property (e.g., you donate sports equipment, you convey the field or transfer title to an asset), the value of that contributed property may be deductible (subject to normal rules about basis, fair market value, and limits), provided you itemize your deductions rather than claiming the standard deduction. Not deductible: If you simply let the nonprofit use your private tennis court for tournaments for a season but retain ownership and the right to reclaim use, you cannot deduct an imputed rental value or the 'use' of the court. Example: Buying and giving new soccer goals to a nonprofit is a deductible charitable contribution (document value and transfer). Letting the club use your privately owned net and goals for a month without transferring ownership is not deductible. Practical nuance: If you rent your property to a nonprofit at a below‑market rate, the difference between fair market rent and the amount charged could be considered a charitable contribution only in narrow circumstances and requires careful valuation and documentation; consult counsel. Medical Expense Exception: Prescribed activities for children with special needs may meet the definition of medical expenses that are primarily for the prevention or alleviation of a physical or mental disability or illness and may be deductible to the extent they exceed the floor (7.5% of adjusted gross income). The expense must be primarily medical in nature. Sports and therapy: In very specific cases a doctor's prescription that a child undertake a particular physical activity (for example, therapeutic horseback riding, specialized swimming therapy, or adaptive sports training) may make related costs deductible as medical expenses. To meet the IRS standard: There must be a written recommendation or prescription from a licensed medical professional stating the medical necessity. The activity must be primarily for medical care or treatment, not merely general health or recreation. Costs must be reasonable, ordinary for the treatment, and not reimbursed. High bar and examples: A physician prescribing therapeutic horseback riding for a child with cerebral palsy could support deductibility of fees and certain related costs (lessons, specialized equipment) if well documented; by contrast, ordinary travel to recreational soccer practice for a child with asthma would not meet the medical necessity threshold. Documentation: Keep the physician's prescription, notes showing the medical condition and treatment plan, invoices, receipts and any program descriptions demonstrating the therapeutic nature of the activity. When a Child's Sport Becomes a Business: Profit motive matters. If a child participates in a sport with a bona fide profit objective (e.g., competing for significant prize money, endorsement deals, or providing paid coaching services), the activity could be a trade or business. In which case: Income (prize money, sponsorships, appearance fees, Name, Image, and Likeness (NIL)deals for college athletes) is taxable. Related ordinary and necessary business expenses are deductible against that income if the activity is carried on for profit. If the activity is classified as a hobby, expenses are not deductible. Self‑Employment (SE) Tax: Net earnings from a child's self‑employment (including independent contracting for sports appearances or coaching) are subject to self‑employment tax if above thresholds — remember this can create both income tax and SE tax obligations. Kiddie Tax and Earned Income: Wages and business income earned by a child are considered earned income and generally are not subject to the 'Kiddie Tax' rules that apply to unearned investment income. NIL Income for College Athletes: Payments for name, image and likeness are taxable. Whether the compensation is treated as wages received as an employee or independent contractor income depends on the arrangement. College athletes receiving NIL payments should report them and keep records; some NIL arrangements generate self‑employment tax and the need to issue/receive 1099 forms. Recordkeeping and Practical Guidance: Be conservative and document everything. For dependent care credit claims, retain invoices and evidence the expense enabled employment. For charitable deductions, keep the nonprofit's EIN, written acknowledgements for gifts of $250+, and receipts for out‑of‑pocket volunteer expenses and mileage logs. For medical deductions tied to prescribed activities, preserve physicians' orders and program descriptions showing therapy focus. Allocate mixed‑purpose expenses. If a program mixes custodial care and instruction, or combines medical therapy and recreation, allocate costs between deductible and nondeductible portions on a reasonable basis and document your method. Beware of quid pro quo transactions. Payments that secure benefits, privileges, or services are often partially nondeductible — only the charitable portion is deductible. The lines between childcare, charitable, medical, and business treatment can be thin and fact‑specific. Large prizes, long‑term NIL arrangements, substantial volunteer program costs or donated property with complex valuation all merit professional review. Contact this office for assistance. Thu, 11 Jun 2026 08:00:00 GMT https://www.taxwiz.net/blog/can-the-irs-see-your-venmo-paypal-or-cash-app-transactions/46763 https://www.taxwiz.net/blog/can-the-irs-see-your-venmo-paypal-or-cash-app-transactions/46763 What Small Business Owners Need to Know Before Tax Season Sneaks Up Again It usually starts with a harmless sentence. 'I only made a little side income.' Or: 'Most of my clients just paid me through Venmo.' Or our personal favorite: 'I never got a tax form, so I assumed I was okay.' And honestly? We get why people think that. Because payment apps don't feel like business systems. They feel casual. Fast. Easy. Invisible. A few transfers here. A couple of invoices there. Some freelance income deposited into Cash App. A handful of Etsy sales routed through Stripe. A side hustle paid through PayPal. No big deal, until tax season arrives and suddenly you're trying to piece together twelve months of scattered transactions across six different platforms while wondering: 'Wait, does the IRS already know about this?' In many situations, payment processors may report qualifying business transactions to the IRS. And for freelancers, creators, gig workers, and small business owners, that's creating a growing tax problem many people don't fully understand until it's too late. Payment Apps Changed How America Gets Paid Over the last few years, payment apps have quietly become the financial backbone of the modern small business economy. Freelancers use PayPal. Creators use Stripe. Side hustlers use Cash App. Online sellers use Shopify. Independent contractors accept Venmo payments. Small businesses invoice customers digitally instead of through checks. For many people, there's no traditional payroll anymore. No HR department. No withholding. No clean W-2. Just money moving everywhere. And while technology made getting paid easier, Taxes didn't get simpler with it. Here's Where People Get Into Trouble The biggest misconception? 'If I don't receive a tax form, I don't have to report the income.' Unfortunately, that's not how tax law works. Generally speaking, taxable income must still be reported whether you receive a tax form or not. That includes: freelance income side hustle income creator revenue consulting work online sales contract labor coaching income marketplace payouts digital services Even smaller payments can add up quickly when income is spread across multiple apps and platforms. And because payment apps often operate separately from bookkeeping systems, bank accounts, or tax software, income can easily get overlooked. Not intentionally. Just accidentally. Which is exactly what creates the mess later. The 1099-K Rules Are Confusing a Lot of People One of the biggest sources of confusion right now involves Form 1099-K. Over the last several years, business owners have heard conflicting headlines about payment app reporting thresholds potentially dropping to $600. But after years of delays and proposed changes, federal tax law officially kept the original reporting threshold in place through legislation known as the One Big Beautiful Bill Act. For many third-party payment platforms, the current federal reporting threshold remains: more than $20,000 in gross payments, and more than 200 business transactions during the calendar year Some states, however, have lower reporting thresholds. That means platforms such as: PayPal Venmo Cash App Business Stripe Shopify Square , may issue a Form 1099-K if transactions exceed the applicable limits. However, there's an important distinction many small business owners miss: Traditional payment card processors operate under different reporting rules. If your business accepts customer credit or debit card payments through a merchant processor or card terminal, those transactions may still be reported on a Form 1099-K regardless of the total dollar amount processed. And here's the part many people still misunderstand: Even if you do NOT receive a Form 1099-K, taxable business income generally still needs to be reported. The form itself does not determine whether income is taxable. The nature of the payment does. Business income? Generally reportable. Freelance work? Generally reportable. Online product sales? Generally reportable. But personal reimbursements, gifts from family members, or splitting dinner with friends are usually not taxable simply because money moved through an app. Zelle Is Different — But Taxes Still Apply Many people assume Zelle works the same way as Venmo or PayPal. It doesn't exactly. Zelle itself does not issue Form 1099-Ks because it operates differently from third-party payment networks. But that does NOT mean business income received through Zelle is tax-free. If you're being paid for products or services, the income may still need to be reported — regardless of how you received it. That's where people often get confused. The payment platform doesn't decide whether income is taxable. Tax law does. Small Business Owners Are Mixing Personal and Business Transactions More Than Ever This is where things really start unraveling. A client pays through Venmo. Another pays through Cash App. Business expenses go on a personal credit card. Someone transfers money between accounts and forgets what it was for. Suddenly, your bookkeeping system becomes: 'I'll figure it out later.' Except later usually means: missing deductions inaccurate records underreported income unnecessary stress IRS notices penalties or interest And when bookkeeping gets messy, business owners often end up doing one of two things: Overpaying taxes because they missed legitimate deductions, or Underreporting income accidentally Neither outcome is ideal. Gig Workers and Creators Are Especially Vulnerable This issue is exploding among: Gen Z entrepreneurs freelancers influencers creators online sellers rideshare drivers gig workers part-time consultants Because many are earning income for the first time outside traditional payroll systems. Taxes are usually not withheld automatically. Quarterly estimated payments often get ignored. Expenses are inconsistently tracked. And multiple income streams create fragmented financial records. What feels like 'extra money' during the year can quickly turn into: self-employment taxes surprise tax bills penalties interest charges , all at once. We're seeing more first-time earners shocked to discover they owe thousands because nobody explained how self-employment taxes actually work. The Real Problem Isn't the Apps — It's the Lack of a System Venmo isn't the enemy. PayPal isn't the problem. Cash App isn't out to ruin your bookkeeping. The real issue is trying to run a business without organized financial systems. Because once income starts flowing through multiple channels, guessing stops working. Smart business owners typically create systems early: separate business accounts organized bookkeeping consistent expense tracking estimated tax planning monthly financial reviews No panic in April. Smart Small Businesses Are Cleaning This Up Mid-Year The businesses handling this best usually are not the ones making the most money. They're the ones staying organized. They review income regularly. They categorize expenses consistently. They reconcile accounts monthly. And they ask questions before problems snowball. Especially now — with inflation, tighter margins, and economic uncertainty — avoiding preventable tax surprises matters more than ever. Because cash flow problems become much worse when unexpected IRS issues show up, too. Final Thought The modern economy has made earning income easier than ever. But it also made taxes more complicated than many people realize. If you're receiving income through Venmo, PayPal, Cash App, Stripe, Shopify, or other digital payment platforms, now is a smart time to review your bookkeeping and tax strategy before year-end pressure starts building. The earlier issues are identified, the easier they usually are to fix. Need Help Cleaning Up Your Books or Planning for Taxes? If your business income flows through multiple apps and accounts, a mid-year bookkeeping and tax planning review can help you stay organized, identify potential issues early, and reduce stress before tax season arrives. Working proactively now may help uncover missed deductions, improve cash flow visibility, and prevent surprises later. Thu, 11 Jun 2026 08:00:00 GMT https://www.taxwiz.net/blog/what-tip-earning-taxpayers-need-to-know-under-the-tips-deduction-final-regulations/46760 https://www.taxwiz.net/blog/what-tip-earning-taxpayers-need-to-know-under-the-tips-deduction-final-regulations/46760 Article Highlights: Below-the Line Defined Who Is Eligible The $25,000 Annual Cap MAGI-Based Phaseout Qualified Tips Occupation Codes (TTOCs) Reporting Requirements Self‑employed Taxpayers Nonemployee Payees and Payer Responsibilities SSTB Special Relief Sample Calculations (Simple) Bottom Line A new, temporary federal tax break for tip earners went into law for tax years beginning in 2025 and runs through 2028. The change creates a below-the-line deduction for “qualified tips,” but it comes with a number of eligibility rules, reporting requirements, and limits taxpayers need to know. This guide explains who can claim the deduction, what counts as a qualified tip, how much you can deduct, special rules for self‑employed workers, and practical recordkeeping and filing tips to avoid surprises. What “Below‑the‑Line” Means: This tax term is used to describe a tax benefit such as the tips deduction that reduces taxable income (and thus tax liability) but does not reduce adjusted gross income (AGI). It's available in addition to the standard deduction or itemized deductions. Who Is Eligible: To claim the tips deduction a taxpayer must: Be in an occupation that “customarily and regularly” received tips as of December 31, 2024 (the IRS has published Treasury Tipped Occupation Codes, or TTOCs, and about 200 illustrative job examples). Receive “qualified tips” that meet the definition described below. For married taxpayers, file a joint return to claim the deduction. Have a valid work‑eligible Social Security number (SSN) — the rules about whose SSNs are required depend on whether both spouses have tips. The $25,000 Annual Cap: Even if you qualify, the deduction is limited. The maximum annual deduction is $25,000 (the cap is the same regardless of filing status). Modified AGI (MAGI) Based Phaseout: The deduction is reduced by $100 for each $1,000 (or fraction thereof) that your modified adjusted gross income (MAGI) exceeds $150,000 for single filers (or $300,000 for joint filers). MAGI for this purpose is your AGI increased by certain foreign earnings excluded from gross income. Qualified Tips: What counts as “qualified tips” are cash tips received in occupations that customarily and regularly received tips as of December 31, 2024. The final regulations clarify several important points about what counts and what doesn't: What's included: Cash tips include traditional cash, but also tips paid by electronic payments, checks, debit and credit cards, gift cards, casino chips, foreign currency, and other tangible or intangible tokens—so long as the amount otherwise meets the definition of a tip. Tips from tip pools qualify if they are voluntary, reported, and meet the other requirements. Managers or supervisors who receive amounts directly for services they actually performed in an eligible tipped occupation can qualify, even though tips received by managers through mandatory tip‑sharing arrangements generally do not qualify. What's excluded: Digital assets (as defined in IRC §6045(g)(3)(D) and related regs), such as bitcoin or stablecoins, are excluded from the definition of “cash tips” under the final regulations. Mandatory service charges or auto‑gratuities are treated as wages and are not qualified tips. Tips paid by a customer to an owner‑employee or to someone who has a significant ownership interest in the business (generally 5% or more—defined by stock ownership for corporations, profits or capital interest for partnerships, and beneficial interest for other entities) are not qualified tips. Tips earned in activities that are illegal under federal law (for example, workers in the cannabis industry) are ineligible, even if the occupation otherwise appears on the TTOC list. Tips attributable to work performed in specified service trades or businesses (SSTBs), such as many health, legal, accounting, or consulting services, generally do not qualify—though transition relief applies in some situations (see below). Occupation Codes (TTOCs): The IRS created Treasury Tipped Occupation Codes (TTOCs) to identify eligible occupations. Employers will include the employee's TTOC on the W‑2 (Box 14b beginning in 2026) and report tip amounts in W‑2 Box 12 using code TP. The TTOC list is illustrative, not exhaustive—so a worker whose job is not specifically listed could still qualify if the occupation customarily and regularly received tips as of December 31, 2024. Reporting Requirements: One of the most important practical changes is that beginning in 2026, only tip amounts that appear on the information statements payers must furnish to payees (W‑2s, 1099‑NEC, 1099‑MISC, or 1099‑K) will be eligible for the deduction. That means cash tips received directly from customers that do not appear on a payee statement generally will not qualify for the tip deduction starting in 2026, although they remain taxable income for other purposes. If the employee (but not a self-employed individual) self-reports the tips received on IRS Form 4137, those tips, if otherwise eligible, will count for the tips deduction. 2025 is a transition year with special relief: Employers and payers were not required to update the 2025 W‑2, 1099‑NEC, 1099‑MISC, or 1099‑K forms to include the new tip reporting fields; the IRS issued penalty relief and guidance for 2025 reporting. Self‑employed taxpayers and nonemployee payees can rely on other documentation (daily tip logs, receipts, settlement statements) to substantiate qualified tips for 2025. For 2026 and later years the IRS generally expects third‑party information reporting (1099s and W‑2s) to substantiate tip amounts. Self‑employed Taxpayers: Self‑employed taxpayers (gig workers, freelancers, independent contractors) in eligible tipped occupations may take the tip deduction, but there are a few special rules: The deduction is limited to the lesser of $25,000 or the net income from the business that produced the tips (before the tip deduction). Net income for this purpose is the amount computed on Schedule C (gross receipts (including tips) minus allowable business expenses) less certain above-the-line deductions (the deductible part of self‑employment tax, contributions to qualified retirement plans, and the self‑employed health insurance deduction). The tip deduction is claimed on Form 1040 Schedule 1‑A (not on Schedule C), and it cannot be used to create or increase a business loss. For 2025, self‑employed taxpayers may rely on their own daily tip logs and documentation to claim the deduction. Beginning in 2026, the IRS generally requires that tips appear on a 1099‑NEC, 1099‑MISC, or 1099‑K from a third party for them to be eligible. Nonemployee Payees and Payer Responsibilities: Businesses that pay nonemployee tipped workers (for example, gig platforms or independent contractors) have reporting responsibilities. Beginning in 2026 the payer must separately account for: (1) amounts reasonably designated as cash tips and (2) the occupation's TTOC code on the payee's Form 1099 or Form 1099‑K. For 2025 the IRS has allowed transitional reporting approaches if a 1099 doesn't separately identify tips. SSTB Special Relief: Specified Service Trades or Businesses (SSTBs): Because it can be hard for employees to know whether tips were received in an SSTB, the IRS will not treat an employee as having received tips in an SSTB provided the employee was in an occupation that customarily and regularly received tips on or before December 31, 2024. This transition relief applies until the IRS finalizes additional guidance. Sample Calculations (Simple):   Annual Cap Example: If you work as a bartender and receive $40,000 of qualified tips in 2026, your maximum allowable deduction is $25,000 (the statutory cap). Phaseout Example: A single filer with MAGI of $160,500 faces a phaseout. Their MAGI exceed $150,000 by $10,500. For each $1,000 (or fraction) above $150,000 the deduction is reduced by $100. The reduction = $100 × 11 = $1,100 (round up fractional thousands). So, if otherwise qualified for the full $25,000, the allowable deduction would be $23,900 after the phaseout. Self‑employed Net Income Limit: If an independent contractor's 2026 Schedule C shows net income of $20,000 from their tip‑earning activity, and the deductible part of their self-employment tax is $1,413, their tip deduction cannot exceed $18,587 ($20,000 - $1,413) even though the statutory cap is $25,000. But it is even worse: if this self-employed person does not have a Form 1099-NEC or 1099-K showing the amount of tips received, no tip deduction would be allowed. Bottom Line: The new tip deduction offers meaningful tax relief for many workers who earn tips, but it is limited, temporary, and accompanied by detailed eligibility and reporting rules. For 2025 the IRS has provided helpful transitional relief for reporting and substantiation, but starting in 2026 the IRS will generally require tips to be supported by information returns furnished by payers. Keep good records, understand whether your occupation is a qualifying one under the TTOC framework, and plan for the deduction cap, phaseout, and the self‑employment net income limit when estimating the 2026 tax impacts. Contact this office with questions or for assistance.   Tue, 09 Jun 2026 08:00:00 GMT https://www.taxwiz.net/blog/the-side-hustle-tax-trap-hitting-gen-z/46761 https://www.taxwiz.net/blog/the-side-hustle-tax-trap-hitting-gen-z/46761 Why So Many Young Workers Are Getting Blindsided by Taxes — Even When They're “Just Making Extra Money” A lot of Gen Z workers are making money in ways nobody really prepared them for. Not through one traditional job. But through a mix of things: freelance work creator income side hustles online sales contract work TikTok monetization delivery apps Etsy shops affiliate income digital products brand partnerships One income stream becomes three. Three become five. And at first? It feels exciting. Flexible. Independent. Modern. You can make money from your phone. Turn hobbies into income. Build an audience. Monetize skills. Work without a boss. For a lot of young people, it feels more realistic than traditional career paths. Until tax season shows up and suddenly someone who thought they were “just making extra money” is staring at a tax bill they absolutely did not expect. Because here's the problem: The modern income economy evolved way faster than financial education did. Gen Z Is Building Careers Differently Than Previous Generations A lot of younger workers are no longer following the traditional path: one employer one paycheck taxes automatically withheld predictable W-2 income Instead, many Gen Z earners are piecing together income from multiple platforms and opportunities at once. And honestly? For many people, that makes sense. Housing costs exploded. Inflation changed spending habits. Traditional jobs feel less stable. Layoffs became normalized. And technology made it easier than ever to monetize skills, hobbies, audiences, and spare time. So Gen Z adapted. They became creators. Freelancers. Independent contractors. Digital entrepreneurs. Gig workers. The problem is... Taxes became more complicated, too. The Biggest Tax Mistake? Thinking “Extra Income” Isn't Real Income This is where a lot of people get blindsided. Someone makes: $2,000 freelancing $1,500 selling products online $3,000 from creator partnerships $4,000 driving for a delivery app And mentally, it all feels separate. Small. Informal. Temporary. But the IRS doesn't necessarily see it that way. Generally speaking, income earned through freelance work, side gigs, creator activity, contract work, or digital platforms may still be taxable — even if taxes were never automatically withheld. And because federal reporting rules changed back to the original Form 1099-K threshold structure, many young earners may never even receive a tax form reminding them about the income. For third-party payment apps like Venmo, PayPal, and Cash App Business, the federal reporting threshold generally remains: more than $20,000 in gross payments, and more than 200 transactions during the calendar year The trap? You could easily make $10,000 or $15,000 spread across multiple apps and platforms, receive zero tax forms in the mail, and still legally owe taxes on the income. That's where many first-time earners get caught off guard. “Wait... Why Do I Owe So Much?” This is one of the most common reactions side hustlers have during tax season. Because many Gen Z earners don't realize they may be responsible for: federal income taxes state income taxes self-employment taxes quarterly estimated tax payments And the biggest surprise for many young earners? Self-employment tax. A lot of people assume: “I made less than the standard deduction, so I probably don't owe anything.” But self-employment tax works differently. If you earn just $400 or more in net self-employment income, you may already have a filing requirement for self-employment taxes. That's the trap. Someone can make a few thousand dollars from side gigs, owe little or no federal income tax, and still owe self-employment taxes for Social Security and Medicare. And unlike traditional jobs, freelance clients and gig platforms often do NOT automatically withhold taxes from payments. So while the money hitting your account feels like spending money in the moment... A portion of it may never have actually belonged to you. That's the part nobody explains early enough. The Modern Income Problem: Money Is Coming From Everywhere This is where things get messy quickly. Income may come through: Venmo PayPal Cash App Stripe Etsy Shopify TikTok YouTube Patreon Upwork DoorDash Uber direct deposits affiliate platforms And when income is spread across multiple apps and platforms, tracking everything becomes difficult fast. Especially when: no bookkeeping system exists expenses aren't tracked personal and business spending get mixed together records live across multiple apps tax forms arrive inconsistently A lot of people genuinely don't know how much they actually made until they sit down to file taxes. And by then, the stress usually kicks in. Myth vs. Reality: The Side Hustle Tax Confusion The Myth The IRS Reality “I didn't get a 1099, so it's probably tax-free.” Taxable business income generally must still be reported — even without a form. “Venmo is just personal money.” If clients pay you through Venmo for work or services, it may still be taxable income. “I only made a few thousand dollars.” Self-employment tax rules can begin once net self-employment income reaches $400. “Taxes are something I deal with in April.” Many side hustlers may need quarterly estimated tax payments during the year. “I'll organize everything later.” Disorganization gets much more expensive once income starts growing. Social Media Made Entrepreneurship Look Easier Than It Actually Is There's another issue quietly happening here too. Social media normalized entrepreneurship without always explaining the backend responsibilities that come with it. Online, side hustles often look like: freedom passive income flexibility quick money lifestyle upgrades What people don't always see: bookkeeping taxes estimated payments expense tracking cash flow planning business compliance inconsistent income The exciting part of making money online gets talked about constantly. The operational side? Not nearly as much. The Good News: Most Tax Problems Start Small — And Stay Fixable Here's the important part. Most young earners are not intentionally doing something wrong. They simply never learned how taxes work outside traditional employment. And honestly, that's understandable. Nobody teaches this stuff particularly well. The earlier someone creates basic financial systems, the easier everything becomes later. Simple habits can make a massive difference: setting aside money for taxes separating business and personal spending tracking expenses consistently reviewing income monthly planning for estimated taxes keeping organized records You do NOT need a giant corporate accounting system to stay organized. You just need a process. Smart Gen Z Earners Are Treating Their Income Like a Real Business One of the biggest mindset shifts happening right now is this: “If I'm making real money... I probably need real systems.” That doesn't mean becoming overly corporate. It means protecting yourself from unnecessary stress later. The creators, freelancers, and side hustlers handling taxes best are usually the ones who: track income consistently stay organized year-round ask questions early understand estimated taxes keep cleaner financial records treat side income like an actual business Because once income grows, disorganization gets expensive fast. This Isn't Just About Taxes — It's About Financial Stability The bigger issue here isn't simply avoiding IRS problems. It's building financial confidence. Because when someone understands: where their money is going how much they actually owe what they can deduct how to plan ahead how to manage inconsistent income ...everything feels less overwhelming. And for a generation navigating inflation, high housing costs, economic uncertainty, and rapidly changing career paths, that clarity matters. A lot. Final Thought Gen Z is redefining how income works. Multiple income streams. Flexible careers. Digital entrepreneurship. Creator economies. Freelance work. That flexibility creates incredible opportunities. But it also creates responsibilities many people were never taught how to manage. The good news? Most tax problems become much easier to handle when they're addressed early — before stress, penalties, or confusion start piling up. Need Help Organizing Side Hustle Income or Planning for Taxes? If you're earning money from freelance work, creator income, gig platforms, online sales, or multiple side hustles, creating a simple bookkeeping and tax system now may help you avoid unnecessary surprises later. A proactive review of your income, expenses, and tax situation can help you stay organized, reduce stress, and build better financial habits as your income grows.   Tue, 09 Jun 2026 08:00:00 GMT https://www.taxwiz.net/blog/video-tips-qof-deferred-income-becomes-taxable-in-2026/46759 https://www.taxwiz.net/blog/video-tips-qof-deferred-income-becomes-taxable-in-2026/46759 The capital gains income deferred into Qualified Opportunity Funds (QOFs) as provided in the 2017 Tax Cuts and Jobs Act, if not already taxed or excluded, will become taxable in 2026, and taxpayers need to plan on how they'll pay the tax on the deferred income when they file their 2026 return or employ tax strategies before year's end to offset the income. Sat, 06 Jun 2026 08:00:00 GMT https://www.taxwiz.net/blog/unlocking-the-power-of-crowdfunding-navigating-tax-implications-and-maximizing-fundraising-success/46757 https://www.taxwiz.net/blog/unlocking-the-power-of-crowdfunding-navigating-tax-implications-and-maximizing-fundraising-success/46757 Article Highlights: Types of Crowdfundingo   Equity-Basedo   Donation Basedo   Rewards Basedo   Membershipo   Real Estate Tax Implications for Organizerso   Income Recognitiono   Deductibility of Expenseso   Equity and Debt Issuanceo   Considering Contributions: Gift or Income?o   Reporting Requirements Strategies to Manage Tax Liabilitieso   For Organizerso   For Contributors Security Exchange Commission (Sec) Regulationso    Exemption from Registrationo    Maximum Offering Amounto    Investor Limits Conclusion Crowdfunding has emerged as a popular method to raise funds for various personal, charitable, and business endeavors. However, with this comes a myriad of tax implications that organizers and contributors must navigate to ensure compliance and minimize liabilities. Crowdfunding is generally done using an online platform that allows the fundraiser to explain the nature of the project or venture, including the amount of money they hope to raise, and the time frame (deadline) for the money-raising campaign. Often, the fundraiser will offer some type of reward to those who contribute (usually termed a backer). The rewards are often just tokens - a coffee cup or t-shirt with a logo, tickets to an event, a video game - or in some cases an equity interest in the endeavor, or the right to be repaid with interest if the campaign is financially successful. Typically, backers who are interested in participating use their credit card to make a pledge, and if the campaign meets its financial goals within the deadline, the crowdfunding site will process the card-based pledges and fund the campaign. This article explores the tax issues related to crowdfunding, shedding light on different types of campaigns, income recognition, contribution classification, reporting requirements, and strategies to manage the tax burden efficiently. TYPES OF CROWDFUNDING Understanding the type of crowdfunding is crucial as it determines the tax treatment. The primary types include: Equity-Based: Equity crowdfunding is the process by which an individual is able to invest in an early-stage company in exchange for shares in that company. This type of crowdfunding is best suited for businesses that are established but in need of capital for expansion. However, this type of fundraiser is subject to Securities Exchange Commission (SEC) regulations discussed below. Donation Based: Donor platforms allow money to be raised without any obligations to investors. Contributions to the stated cause are donations or gifts with no strings attached. Common donation-based causes include philanthropy; medical, funeral or living expenses for individuals; and disaster-relief. GoFundMe is the platform frequently used to raise money for personal causes and for charitable fundraising. Rewards Based: fundraising is most commonly associated with platforms like Kickstarter and Indiegogo. Through the rewards system, individuals and businesses raise money by offering a product or service in exchange for a campaign contribution. Membership: Patrons pay a monthly or per-creation fee to support ongoing work. It's a common model used by podcasters, YouTubers, writers, and musicians.  Real Estate: Investors pool money to fund large real estate projects in exchange for a share of the rental income or appreciation.  Each type of crowdfunding has unique tax considerations for both organizers and contributors. TAX IMPLICATIONS FOR ORGANIZERS Income Recognition: The IRS generally considers funds raised through crowdfunding as income, which must be reported on the organizer's tax return unless they can demonstrate that the contributions were gifts under the law. For example:o    Business Ventures - If a crowdfunding campaign supports a business project, the funds are likely taxable as business income. Organizers should report this on their business tax returns.¨       No Business Ownership Interest Given - This applies when the fundraiser only provides the contributor nominal gifts, such as products from the business, coffee cups, or T-shirts; the money raised is taxable to the fundraiser.¨       Business Ownership Interest Provided - This applies when the fundraiser provides the contributor with partial business ownership in the form of stock or a partnership interest. In this circumstance, the money raised is treated as a capital contribution and is not taxable to the fundraiser. The amount contributed becomes the contributor's tax basis in the investment. When the fundraiser sells business ownership, the resulting sales must comply with SEC regulations.o    Donation-Based Campaigns - Although these funds are typically for personal use and may not be taxed, the classification can change if the organizer receives benefits in return. If the campaign is for charitable purposes, it won't automatically qualify for tax exemption unless it's a qualified charitable organization.o    Rewards - When contributors receive goods, services, or other rewards, the value is taxable to the recipient, and the funds used to purchase these items are considered revenue. Deductibility of Expenses: Organizers may deduct expenses directly related to the crowdfunding campaign if they are ordinary and necessary to the operation of a business. These expenses might include:o   Production costs for rewardso   Marketing and platform feeso   Administrative and operational expensesFor expenses to be deductible, the activity must be conducted with a profit motive, and the effort should be classified as a trade or business. Equity and Debt Issuance: In equity-based crowdfunding, the funds raised are typically not taxed upon receipt since they represent capital contributions. However, these transactions invoke obligations to report under SEC regulations. Similarly, in debt-based crowdfunding, the interest paid to contributors is deductible for the organizer, while declared interest income is taxable to lenders. Considering Contributions: Gift or Income? A critical aspect for both organizers and contributors is differentiating between taxable income and a gift. According to IRS guidelines:o    Gift Characteristic - Contributions are considered gifts if given without the expectation of a reward or compensation, often based on donative intent. The annually inflation adjusted gift tax exclusion ($19,000 to any individual in 2026) applies, with gifts below this threshold potentially being non-reportable.o    Income Characteristic - If there's an expectation of goods, services, or equity, the funds are treated as income, hence taxable. For instance, in a rewards-based campaign, the fair market value of the reward is recognized as income. Reporting Requirements: Crowdfunding platforms, and effective in 2025 and subsequent years, are required to report gross payments made during the calendar year to users who receive a gross amount of $20,000 and more than 200 transaction in a calendar year. Platforms will issue a Form 1099-K, provided they process payments.o    Organizers should meticulously track all funds received and disbursements made, ensuring they can substantiate their tax positions during auditso    Contributors who receive significant returns beyond their contributions (as in equity crowdfunding) must report this on their tax returns. STRATEGIES TO MANAGE TAX LIABILITIES For Organizers:o    Proper Structuring: Structuring the campaign effectively and consulting with a tax advisor can help minimize tax obligations. Choosing the right business entity (LLC, corporation, etc.) can affect how income is taxed and expenses are deducted. For Contributors:o    Assessing Return on Investment: Contributors in equity and debt crowdfunding should evaluate the potential tax implications of their investments, including capital gains, dividends, and interest income.o    Tracking Investments: Keep track of any earnings or benefits received, as these will need to be reported on personal tax returns.o    Understanding Gift Implications: When contributing without expecting something in return, clarify whether the contribution classifies as a gift and understand its limits within the IRS guidelines. The periodically inflation adjusted annual limit without filing gift tax return for 2026 is $19,000 per person. When a gift tax return is required, it is filed by the individual who made the gift, not the gift recipient.o    Charitable Fundraising Nuances: Crowdfunding contributions only qualify for a charitable contribution deduction if made to an organization recognized by the IRS as a qualified charitable organization. Donations to personal campaigns (e.g., for an individual's medical bills) are considered personal gifts and are not tax-deductible.  SECURITY EXCHANGE COMMISSION (SEC) REGULATIONS The current SEC rules for crowdfunding are shaped largely by the Jumpstart Our Business Startups (JOBS) Act of 2012, which is intended to facilitate capital formation for startups and small businesses by easing certain regulatory requirements. The rules set by the SEC aim to balance the need to facilitate capital formation while ensuring adequate investor protection. Here are the key aspects of the SEC rules for crowdfunding:  Exemption from Registration: The JOBS Act provides an exemption from registration for specific crowdfunding transactions. This enables businesses to offer and sell securities through crowdfunding without undergoing the full SEC registration process. Maximum Offering Amount: Companies can raise up to a certain amount of capital within any 12-month period through crowdfunding. The SEC updates these limits periodically. The current SEC rules for crowdfunding permits eligible companies to raise up to $5 million in a 12-month period through an SEC-registered online intermediary. The rules also set limits on how much non-accredited investors can invest and require specific disclosures and ongoing reporting.  Investor Limits: There are limits on how much individual investors can contribute over a 12-month period, which are based on their income and net worth. These limits are intended to protect less experienced investors from taking on excessive risk.·  Accredited Investors: Accredited investors or entities have no limits on their investment amounts. The specific criteria for an individual to qualify as an accredited investor are based on wealth, income, or professional experience. Entities can also qualify based on their assets or structure.·  Non-Accredited Investors: Non-accredited investors have aggregate investment limits over a 12-month period based on their income and net worth.o    If either income or net worth is below $124,000, the limit is the greater of $2,500 or 5% of the greater of income or net worth.o    If both are $124,000 or more, the limit is 10% of the greater of income or net worth, up to $124,000 in a 12-month period.o    Resale Restrictions: Securities generally have a one-year restriction on resale, with limited exceptions.  Intermediary Requirement: Offerings must use a single online platform operated by an SEC and FINRA registered broker-dealer or funding portal. Disclosure Requirements: Issuers must file Form C with the SEC, detailing their business, use of funds, ownership, risks, and financials. Annual Reporting: Annual reports on Form C-AR are required within 120 days of the fiscal year-end until termination conditions are met. Advertising Limitations: Advertising is limited to notices directing investors to the intermediary's platform. Bad Actor Provisions: Certain past legal violations by the issuer or related individuals can disqualify an offering.   Conclusion Crowdfunding offers significant opportunities for innovators and entrepreneurs, yet it carries complex tax responsibilities that require careful management. Given the broad array of crowdfunding models and varying uses of raised funds, it may be appropriate to seek assistance in advance. Engaging with a knowledgeable tax professional can provide crucial guidance, helping to ensure compliance and optimize tax outcomes in this dynamic landscape. Contact this office with questions and for assistance.     Thu, 04 Jun 2026 08:00:00 GMT https://www.taxwiz.net/blog/the-emergency-savings-crisis-quietly-growing-in-america/46758 https://www.taxwiz.net/blog/the-emergency-savings-crisis-quietly-growing-in-america/46758 Why So Many People Feel Financially Vulnerable Right Now — Even If They're Working Hard and Making Decent Money For a lot of people right now, financial stress doesn't look dramatic from the outside. They're still working. Still paying bills. Still showing up every day. Still trying to be responsible. But underneath? There's a growing feeling that things have become... financially fragile. That one unexpected expense could create a real problem. A car repair. A medical bill. A surprise insurance increase. A major home expense. A last-minute flight. A few difficult months in a row. And suddenly, a household that looked “fine” on paper starts feeling financially stretched very quickly. That's the quiet financial reality many Americans are navigating right now. Not complete collapse. Just very little margin for error.  More Americans Are Relying on Credit Cards Instead of Savings According to recent Bankrate research, the nation is quietly hitting historic financial pressure points. Roughly 36% of Americans now report having more credit card debt than emergency savings — the highest percentage recorded since Bankrate began tracking the data over a decade ago. Even more concerning? Nearly 1 in 4 Americans report having no emergency savings at all. That's a major shift. Because for many households, credit cards have quietly become the emergency fund. Not because people are irresponsible. But because life became significantly more expensive over the last several years. Groceries cost more. Insurance costs more. Housing costs more. Utilities cost more. Everyday life simply requires more cash flow than it used to. And while incomes may have increased for some households, expenses often rose right alongside them. Sometimes faster. A Lot of Financially Responsible People Still Feel Behind This is an important point. Many people experiencing financial stress are not reckless spenders. They're people who: work full-time budget reasonably well pay their bills try to save consistently avoid unnecessary debt And yet... They still feel financially anxious. Because modern financial pressure often isn't caused by one terrible decision. It's usually the accumulation of smaller pressures happening all at once: Inflation fatigue from rising grocery, utility, and everyday living costs Compounding debt payments used to bridge temporary cash flow gaps Higher insurance premiums and housing costs that quietly consume more income Childcare and healthcare expenses that continue rising faster than many paychecks Subscription creep and lifestyle inflation that slowly increase monthly obligations The result? A growing number of households feel like they're working harder just to maintain stability.  Emergency Savings Used to Feel Optional. Now They Feel Essential. A few years ago, emergency savings often felt like a “nice goal.” Now? For many people, it feels more like financial survival equipment. Because uncertainty feels higher. Layoffs happen faster. Unexpected expenses feel larger. Debt is more expensive to carry. And recovering financially from emergencies often takes longer. That's why financial advisors consistently emphasize something simple but powerful: Cash reserves create breathing room. Not perfection. Not overnight wealth. Breathing room. The ability to absorb a surprise expense without immediately turning to high-interest debt. That matters emotionally just as much as financially. The Real Problem Usually Isn't One Big Expense This is where many households quietly struggle. Financial stress often doesn't come from one catastrophic moment. It comes from repeated smaller pressures: increased grocery bills higher utility costs insurance increases unexpected school expenses rising debt payments subscription creep using credit cards to bridge temporary gaps several “small emergencies” happening back-to-back Individually, each expense feels manageable. Together? They slowly erode financial stability over time. And because the pressure builds gradually, many people don't fully realize how financially stretched they've become until they suddenly feel stuck. Credit Cards Quietly Become the “Backup Plan” For many households, credit cards gradually become: the emergency fund the cash flow buffer the temporary solution the “I'll figure it out later” tool And in the short term, that can feel manageable. Until interest starts compounding. Because with average credit card interest rates now hovering above 21%, carrying balances has become dramatically more expensive than it was even a decade ago. That changes the math significantly. A few thousand dollars of revolving debt can quickly become difficult to escape when minimum payments are consumed largely by interest charges instead of reducing the principal balance. That's one reason financial stress feels heavier right now for so many households. Debt itself became more expensive, too. Financial Stress Is Emotional — Not Just Mathematical This part matters. Money stress affects: sleep relationships confidence mental health decision-making long-term planning And many people are carrying quiet financial anxiety they don't openly talk about. The constant feeling of: being slightly behind financially exposed underprepared one emergency away from stress ...takes a real emotional toll over time. Especially for younger families, middle-income households, and people trying to balance rising costs while still planning for the future. The Good News: Small Financial Systems Matter More Than Perfection This is where people often become discouraged. They assume financial stability requires: massive income increases perfect budgeting eliminating all discretionary spending never making financial mistakes But financial stability usually improves through smaller, consistent habits over time. Things like: building even a modest emergency fund tracking spending more consistently reducing high-interest debt reviewing recurring subscriptions  improving cash flow visibility automating savings gradually planning ahead for irregular expenses None of those habits are flashy. But together, they create resilience. And resilience matters during financially uncertain periods. Financial Visibility Reduces Financial Anxiety One of the most overlooked benefits of budgeting and financial planning is emotional clarity. Because uncertainty becomes much scarier when people don't fully know: where their money is going how much debt they're carrying which expenses are increasing how much cash flow they actually have what would happen during an emergency Clear financial visibility helps people make calmer, more intentional decisions. Not fear-driven ones. And that's often the first meaningful step toward improving financial stability. This Isn't About Fear — It's About Preparation This article isn't meant to suggest people should panic. In fact, the opposite. The goal is simply to recognize that financial pressure has become more common — and that building stronger financial systems matters more than ever. Not because anyone expects perfection. But because preparation creates options. And options reduce stress. Final Thought A lot of Americans are quietly carrying more financial stress than they admit. Not because they failed. But because the financial environment became more expensive, less predictable, and harder to navigate over time. The good news? Financial resilience does not usually happen all at once. It's built gradually through visibility, planning, consistency, and small decisions repeated over time. And even modest emergency savings can create something many people desperately need right now: A little breathing room. Need Help Improving Financial Visibility or Planning Ahead? Building stronger financial habits often starts with understanding where your money is going, identifying areas of pressure, and creating a plan that feels realistic and sustainable. A proactive financial review may help improve visibility, reduce stress, and create a stronger foundation for long-term financial stability.   Thu, 04 Jun 2026 08:00:00 GMT https://www.taxwiz.net/blog/unlocking-healthcare-savings-how-hsas-and-hdhps-can-combat-rising-insurance-costs/46755 https://www.taxwiz.net/blog/unlocking-healthcare-savings-how-hsas-and-hdhps-can-combat-rising-insurance-costs/46755 Article Highlights: The Structure and Benefits of HSAs Use as Retirement Vehicle Eligibility for HSAs High-Deductible Health Plan (HDHP)  Contribution Limits Qualified Medical Expenses Non-Qualified Distributions How HSA Accounts Are Established In the face of escalating healthcare costs, many individuals and families are seeking innovative strategies to manage expenses effectively. One emerging alternative gaining traction is the combination of Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs). This dynamic duo not only empowers consumers with greater control over their healthcare spending but also offers potential tax advantages, making it an appealing option in today's financial landscape. As traditional health insurance premiums continue to rise, understanding how HSAs coupled with HDHPs can serve as a viable solution is increasingly important. This article explores the benefits, considerations, and potential savings these plans offer, providing a comprehensive overview for those looking to take charge of their healthcare finances. At its core, a Health Savings Account is a tax-advantaged account available to individuals enrolled in High-Deductible Health Plans (HDHPs). HSAs allow individuals to contribute funds that are not taxed when deposited, which grow tax-free, and withdrawals used for qualifying medical expenses are tax free. The Structure and Benefits of HSAs - HSAs are uniquely structured to offer a triple tax benefit—a feature that sets them apart from many other savings and investment accounts: Tax-Deductible Contributions: Contributions to an HSA are made with pre-tax dollars, meaning they reduce an individual's taxable income. This can lead to substantial tax savings, particularly for individuals in higher tax brackets. Tax-Free Growth: Within the account, funds accumulate without being subjected to taxes on interest or investment earnings. This allows the balance to grow over time without the erosion of taxes that typically affect other types of accounts. Tax-Free Withdrawals: When funds are used for qualified medical expenses, withdrawals from an HSA are not taxed. This provides significant financial relief by covering a wide range of healthcare-related costs without additional tax burdens. Non-Medical Withdrawals: Before age 65, if withdrawn funds are not used for qualified medical expenses, they are taxable and subject to a 20% penalty. Post-Age 65 Withdrawals: Once reaching age 65, distributions other than for medical purposes can be taken penalty free, although they are taxable income (like traditional IRAs). Death of an Account Owner: Upon the death of an account owner, the HSA can have varying outcomes based on the beneficiary. If transferred to a spouse, the HSA remains intact as a spousal account. For non-spouse beneficiaries, the account's value becomes taxable income. Use as Retirement Vehicle - Establishing and contributing to an HSA can be more than just a way for individuals to save taxes and gain control over their medical care expenditures. It can also be a retirement vehicle, especially for taxpayers who are maxed out on their other retirement plan options or who can't contribute to an IRA because of the income limitations that apply when covered by an employer's plan. There is no requirement that medical expenses must be paid or reimbursed from the HSA, so a taxpayer can maximize tax-free growth in the account by using funds from other sources to pay routine medical costs. Later, distributions can be used tax-free to pay post-retirement medical expenses. Or, if used for non-medical purposes, an individual age 65 or older will pay income tax, but not a penalty, on the distribution. Unlike IRAs, no minimum distributions are required to be made from HSAs at any specific age. Eligibility for HSAs: To participate in an HSA, an individual must meet specific criteria: Enrollment in an HDHP: An individual must be covered by a High-Deductible Health Plan that meets minimum deductible and maximum out-of-pocket thresholds set by the IRS. No Other First-Dollar Coverage: The individual should not have other insurance that provides coverage before the HDHP deductible is met (with exceptions for certain types of insurance like dental, vision and long-term care). Not Enrolled in Medicare: Contributing to an HSA comes with restrictions if the account holders have Medicare or VA coverage. Generally, HSA contributions aren't allowed if enrolled in Medicare, which typically occurs by age 65. However, account holders can still spend down existing HSA funds. Have VA Coverage: An account holder may be an eligible individual even if they receive hospital care or medical services under any law administered by the Secretary of Veterans Affairs for a service-connected disability. (IRS Pub 969 (2024)). Dependency Status: The account holder cannot be claimed as a dependent on another person's tax return. High-Deductible Health Plan (HDHP) - An HDHP is a type of health insurance characterized by lower monthly premiums and higher annual deductibles than traditional plans. Under an HDHP, you typically pay the full cost of medical care out of pocket until you reach your deductible, after which the insurance company begins to share costs through coinsurance or copayments.  2026 IRS Requirements - For a plan to be classified as a "qualified" HDHP in 2026, it must meet specific financial thresholds set by the IRS:o    Minimum Deductible: At least $1,700 for self-only coverage or $3,400 for family coverage.o    Maximum Out-of-Pocket Limit: Total out-of-pocket expenses (including deductibles and coinsurance, but not premiums) cannot exceed $8,500 for self-only or $17,000 for family coverage. Note: Starting in 2026, all individual marketplace Bronze and Catastrophic plans are reclassified as qualifying HDHPs, even if they do not meet these standard financial limits. Also new beginning in 2026 is that an individual with an HDHP may also enroll in a “direct primary care arrangement” without jeopardizing their eligibility for their HSA. This is an arrangement where medical cares provided to the individual consists solely of primary care services provided by a primary care practitioner for a fixed period fee not exceeding $150 per month or $300 per month if the arrangement covers more than one individual. The dollar limits will be inflation-adjusted annually after 2026. Fees paid for a direct primary care service arrangement are treated as medical expenses (and not the payment of insurance). Key Features:o    HSA Eligibility: HDHPs are the only health plans that can be paired with a Health Savings Account (HSA), which allows you to set aside pre-tax money for medical expenses.o    Preventive Care: Most plans cover in-network preventive services (like vaccinations and screenings) at 100% with no deductible required.o    Telehealth: New regulations allow HDHPs to cover telehealth and remote care services before the deductible is met without losing HSA eligibility.  Contribution Limits - Contribution limits are annually inflation adjusted and are deductible above-the-line, thus reducing a taxpayer's AGI. The contribution limits for 2026 are: Self-Only Coverage: $4,400 Family Coverage: $8,750 Age 55+ Catch-Up Contribution: $1,000o    Married Taxpayers: If both spouses are 55+ and eligible, they can each contribute an extra $1,000 to their own separate accounts. Excess Contribution Penalty: Both employer and employee can contribute to an HSA, with employee contributions being done either via payroll deductions or direct deposit to the account. If contributions exceed the annual limit, the excess amount can be withdrawn by the tax-filing deadline, including extensions, to avoid a 6% excise tax penalty for over-contribution. Tax Deduction: An account holder gets the deduction for contributions to his HSA even if someone else (e.g., a family member) makes the contributions. (Code Sec. 62(a)(19)) Employer contributions to an HSA are excludable from the employee's income - so these contributions are not deducted on the employee's tax return. Distributions for qualifying medical expenses are tax-free, but these same medical expenses can't be used as a Schedule A medical deduction. Qualified Medical Expenses - Are unreimbursed expenses paid by the account beneficiary, his or her spouse, or dependents for medical care as defined in Code § 213(d), i.e., generally the same definition used for itemized deduction medical expenses. Additional items specifically included are: Over-the-counter drugs Insulin Feminine menstrual products COVID-19 personal protective equipment Qualified medical expenses encompass a wide range of health-related costs, including doctors' fees, hospital services, and prescription medications. Generally, health insurance premiums are not qualified medical expenses for HSA purposes, except for the following: Qualified long-term care (LTC) insurance, but only up to the annual age-based limit that applies for deducting long-term care premiums as medical expenses, COBRA health care continuation coverage, Health care coverage while receiving unemployment compensation, and For individuals age 65 or over, premiums for Medicare A, B or D, Medicare HMO, and the employee share of premiums for employer-sponsored health insurance, including premiums for employer-sponsored retiree health insurance (but not Medigap policies). Non-Qualified Distributions - Distributions from an HSA are permitted at any time, and if used exclusively to pay for qualified medical expenses of the account beneficiary, his or her spouse, or dependents, are excludable from gross income. Distributed amounts not used to pay for qualified medical expenses are includible in the account beneficiary's gross income and are subject to a 20% penalty tax. However, the penalty does not apply if the distribution is made on account of the beneficiary's: Death, Disability, or Attaining age 65. Amounts withdrawn from an HSA to pay for the account's administration and maintenance fees are not treated as taxable distributions. If these fees are paid directly by the account beneficiary or employer, they will not be considered contributions to the HSA, and therefore, won't count toward the annual maximum contribution. Correcting Non-Qualified Distributions - If an HSA distribution was mistakenly made due to a reasonable cause, the account beneficiary can repay it by April 15 of the year after they realize the mistake. In this case, the distribution isn't included in gross income, isn't subject to the 20% additional tax, and the repayment isn't subject to excise tax on excess contributions. How HSA Accounts Are Established - An HSA can be established through a qualified trustee such as a bank, credit union, and other approved institutions. Notably, there is no requirement for earned income to open an HSA. Contributions can come from the account holder, their employer, or another individual, though only cash can be contributed—not stocks or other forms of property. For those navigating the complexities of healthcare savings and insurance options, seeking personalized advice can make all the difference. Whether you have questions about Health Savings Accounts, High-Deductible Health Plans, or other financial strategies, we're here to help. Contact this office to schedule a consultation and explore options and assist you in making informed decisions that align with your healthcare and financial goals. Tue, 02 Jun 2026 08:00:00 GMT https://www.taxwiz.net/blog/the-economy-feels-uncertain-here8217s-what-smart-small-businesses-are-doing-anyway/46756 https://www.taxwiz.net/blog/the-economy-feels-uncertain-here8217s-what-smart-small-businesses-are-doing-anyway/46756 How Smart Business Owners Are Navigating Inflation, Higher Costs, and Consumer Anxiety Without Freezing in Fear A lot of small business owners are having the same quiet thought right now: 'Something feels, off.' Not catastrophic. Not recession headlines every hour. Not full panic. Just uncertainty sitting underneath almost everything. You can feel it in customer conversations. In delayed purchasing decisions. In projects that stay in the proposal stage longer than they used to. In consumers suddenly asking more questions before spending money. And you can definitely feel it when you look at expenses. Between higher payroll costs, rising insurance premiums, elevated borrowing rates, fluctuating fuel prices, and consumers carrying more personal debt, many business owners feel like they're working harder just to maintain the same margins they had a few years ago. According to the National Federation of Independent Business (NFIB), small business optimism has remained below its 52-year historical average of 98.0, while the NFIB Uncertainty Index has climbed well above historical norms. In other words? That uneasy feeling many business owners have right now isn't imaginary. It's measurable. And business owners are trying to navigate all of it at once: persistent inflation elevated interest rates global instability volatile energy markets shifting consumer behavior tighter household budgets changing technology ongoing regulatory and policy uncertainty When uncertainty piles up, consumers tend to become more cautious financially. And small businesses usually feel that shift first. Inflation Isn't Just Raising Prices — It's Changing Consumer Behavior This is the part many businesses are noticing in real time. Inflation doesn't simply make products and services more expensive. It changes how people think. Customers hesitate longer before making purchases. They comparison shop more aggressively. They delay projects. They downgrade services. They wait for sales. They ask for additional estimates before committing. Even financially stable households are becoming more selective. And for small businesses, that creates a completely different operating environment than the one many experienced just a few years ago. Business owners are seeing it everywhere: longer sales cycles reduced impulse spending slower client approvals tighter discretionary budgets increased price sensitivity customers 'thinking about it' longer For businesses operating on tighter margins, those subtle shifts matter enormously. Because when customer behavior changes, predictability disappears. The Businesses Struggling Most Right Now Usually Have One Thing in Common They're operating without visibility. Not because they're bad operators. Because uncertainty exposes weak systems quickly. A surprising number of businesses still lack: Accurate monthly bookkeeping to identify shrinking margins before they become dangerous Reliable cash flow forecasting to spot pressure points before cash gets tight Clear pricing analysis to determine whether inflation has quietly eroded profitability Proactive tax planning to avoid expensive surprises later Visibility into debt and operating expenses before they compound into larger problems And during stronger economic periods, businesses can sometimes survive despite inefficiencies. In tighter economies? Those blind spots become dangerous. Small business cash flow problems rarely appear overnight. They build quietly in the dark. A little more credit card usage here. A delayed receivable there. Margins are compressing slowly over time. An unexpected expense landing at the wrong moment. Until one day, the business owner looks up and realizes: 'We're generating revenue, so why does it still feel this tight?' Smart Businesses Aren't Panicking — They're Tightening Operations This is where resilient businesses are separating themselves right now. Not through flashy growth tactics. Not through reckless expansion. And not through fear-driven cost cutting either. The strongest businesses are becoming more disciplined. They're reviewing expenses carefully. Watching cash flow weekly instead of quarterly. Improving operational efficiency. Reducing unnecessary overhead. Protecting margins. And making decisions based on data instead of emotion. That distinction matters. Because uncertain economies tend to trigger two dangerous reactions: panic paralysis Neither one helps businesses survive. The healthiest companies are staying flexible without becoming reactive. Many Small Businesses Are Intentionally Staying Lean One of the biggest shifts happening right now is that business owners are becoming much more intentional about overhead. Over the last several years, many businesses have learned difficult lessons about scaling too aggressively during stronger economic cycles. Hiring too quickly. Adding unnecessary overhead. Expanding without strong systems. Assuming demand would always stay strong. Now, with borrowing costs higher and margins tighter, many owners are choosing to operate leaner by design: smaller teams outsourced support tighter inventory management more selective marketing spend simplified operations fewer unnecessary software subscriptions That doesn't necessarily mean businesses are struggling. In many cases, it means they're becoming more financially disciplined. And discipline matters when markets become less forgiving. AI Is Quietly Helping Small Businesses Stay Competitive One of the more interesting shifts happening right now is how many small businesses are using AI tools to offset operational pressure. Not in some futuristic 'replace the workforce' way. More practically. Business owners are using AI to: draft marketing content automate repetitive communication organize workflows improve responsiveness summarize meetings streamline administrative tasks reduce time spent on manual work For businesses facing tighter margins, even modest efficiency gains matter. Saving five hours a week suddenly has real financial value when hiring remains expensive and consumers are becoming more cautious. Most businesses aren't using AI to replace entire teams. They're using it to reduce unnecessary operational friction while staying competitive. And in uncertain economies, efficiency compounds. Customer Relationships Matter More During Uncertain Economies When consumers become more cautious, trust becomes incredibly valuable. People spend more carefully during uncertain periods. They research more. Ask more questions. Look for reassurance. And gravitate toward businesses that feel responsive, transparent, and reliable. That means customer experience becomes a competitive advantage. The businesses holding up best right now are often the ones: communicating proactively staying visible educating customers responding quickly building loyalty creating confidence Because when people feel uncertain financially, trust influences purchasing decisions more than ever. Businesses competing only on price often struggle in environments like this. Businesses competing on relationships tend to stay stronger. Cash Flow Matters More Than 'Revenue Growth' Headlines A lot of businesses still look healthy from the outside. Revenue may even be increasing. But profitability? That's becoming a much harder conversation. Higher operating costs are quietly squeezing margins across nearly every industry. And many business owners are discovering that growing revenue doesn't automatically translate into healthier cash flow. That's why disciplined businesses are focusing heavily on: cash reserves debt management tax planning pricing strategy accounts receivable operational efficiency financial forecasting Because businesses rarely fail from lack of effort. More often, they fail from cash flow pressure that slowly builds beneath the surface. The Businesses Staying Calm Right Now Usually Have Better Financial Visibility One of the biggest competitive advantages a business can have during uncertain economic periods is clarity. Clear numbers. Organized bookkeeping. Reliable reporting. Consistent forecasting. Proactive tax planning. Not guesswork. The businesses making the best decisions right now are usually the ones with the clearest financial visibility. Because clarity reduces emotional decision-making. And emotional decision-making becomes very expensive during uncertain economies. Final Thought No business owner can control inflation, interest rates, global instability, or changing consumer sentiment. But businesses can control how prepared they are. The companies staying resilient right now are not pretending uncertainty doesn't exist. They're adapting to it. They're tightening operations thoughtfully. Improving efficiency. Protecting cash flow. Strengthening customer relationships. And paying closer attention to their numbers before small problems become expensive emergencies. Because uncertain economies don't just expose weak businesses. They often strengthen disciplined ones, too. Need Help Improving Financial Visibility or Cash Flow Planning? Periods of economic uncertainty are often the best time to improve bookkeeping, strengthen cash flow planning, review pricing strategy, and identify opportunities to operate more efficiently. A proactive review of your business finances and tax strategy may help you make more confident decisions in a changing economy. Tue, 02 Jun 2026 08:00:00 GMT https://www.taxwiz.net/blog/video-tips-june-15-estimated-tax-payment/46754 https://www.taxwiz.net/blog/video-tips-june-15-estimated-tax-payment/46754 The U.S. tax system requires that income taxes be paid as income is earned or received during the year. For wages, this is accomplished by the employer withholding tax from the employee's earnings and transferring the withheld tax to the IRS, which the employee then claims as a payment credit on their individual income tax return. When the amount of income tax withheld isn't enough, or if the individual receives income on which tax isn't withheld (such as interest, dividends, capital gains, rental profits, self-employment income, etc.), the individual may have to make estimated tax payments. Sun, 31 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/just-starting-a-new-business-dont-overlook-start-up-and-organizational-costs-deductions/46752 https://www.taxwiz.net/blog/just-starting-a-new-business-dont-overlook-start-up-and-organizational-costs-deductions/46752 Article Highlights: Deductible Expenses:o   Start-Up Expenseso   Organizational Expenses How Much Can Be Deducted Now vs. Over Time Special Purchase Rule How to Claim Recordkeeping — What to Keep Examples Practical Guidelines Starting a new business can be expensive, but the tax rules offer relief: certain start‑up and organizational expenses, like market research, advertising, training, professional fees and filing costs to form a company can be deducted instead of waiting until you sell the business. In many cases you can take a small immediate deduction (typically up to $5,000 for start‑up costs and up to $5,000 for organizational costs) and spread the remainder over 15 years. To claim these benefits you make the election on the tax return for the year your business begins, so keep clear records of every expense leading up to your business start date. Deductible Expenses: Start-Up Expenses: Start-up costs are amounts you pay to set up or investigate starting a business before it opens. Typical qualifying items include: Market research and feasibility studies (surveys, industry analyses). Advertising and promotional costs related to opening the business. Travel and related costs to secure prospective customers, distributors, or suppliers. Wages paid to employees and trainers while training employees before opening. Fees paid to consultants, accountants, and attorneys for business formation planning. Non‑Qualifying Items: Interest, taxes, and research & experimental costs. Costs for depreciable assets — those are recovered through depreciation once the asset is placed in service, not via the start‑up election. Costs incurred to acquire a specific business (these are capitalized as part of the purchase price, not treated as start‑up expenses — see below). Organizational Expenses: Direct costs of organizing a corporation or partnership. Examples include legal services incident to organization, state filing fees, organizational meetings, and accounting services related to organization. How Much Can Be Deducted Now vs. Over Time: You can usually take an immediate deduction for start-up costs (up to $5,000) and a separate immediate deduction for organizational costs (up to $5,000). This even applies to costs you paid in a previous year. Each immediate deduction is reduced dollar-for-dollar when the total related costs exceed $50,000. Any remaining costs after the immediate deduction are deducted slowly over 15 years (180 months), starting the month the business begins operations. Special Purchase Rule: If you're generally looking for a business to buy, your investigative expenses can often be treated as start-up costs. If you incur costs trying to buy a specific existing business, those costs are usually added to the purchase price of the business instead of being treated as start-up costs. How to Claim: The choice to take the immediate deduction and amortize the rest is made on your tax return for the year your business begins operating. If you're a sole proprietor, you report deductions on your business tax forms and generally use the form that starts depreciation/amortization reporting. If you're in a partnership or corporation, the entity reports the deductions on its return, and any tax effects pass through to owners as applicable. The election is generally permanent, so decide carefully. Recordkeeping — What to Keep: Invoices, contracts, credit card statements, canceled checks, statements of work. Notes that explain the purpose of each expense and how you allocated mixed-purpose costs. Evidence of your business start date: first sales, business license, bank account opening, or meeting minutes. Examples: Example A: Total start-up costs = $30,000. Immediate deduction = $5,000. Remaining $25,000 amortized (deducted evenly) over 180 months ($138.89 per month). Example B: Total start-up costs = $53,000; organizational costs = $3,000. Start-up immediate deduction = $5,000 − ($53,000 − $50,000) = $2,000. Remaining start-up expenses = $51,000 to be amortized. Organizational deduction = full $3,000. Practical Guidelines: Have this office run the numbers before choosing the immediate deduction. Sometimes amortizing the costs can be better than an immediate deduction depending on your tax situation. Be conservative and keep clear, contemporaneous documentation — the IRS looks closely at large start-up deductions. Keep an ongoing schedule that aggregates all start-up and organizational costs so the deductions can be calculated correctly when business operations begin. If you'd like help applying these rules to your situation, contact this office. Your expenses can be reviewed, and what qualifies as start‑up or organizational costs determined, any immediate deduction and the required amortization calculated, the election statement prepared to include with your tax return, and advice provided on the recordkeeping and timing you'll need. It's often helpful to consult early so expenses are tracked correctly from the start. Call or email to schedule a brief consultation. This office is here to make this part of starting your business as simple and tax‑efficient as possible. Thu, 28 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/sports-betting-isnt-just-entertainment-anymore--its-tax-policy/46753 https://www.taxwiz.net/blog/sports-betting-isnt-just-entertainment-anymore--its-tax-policy/46753 Nebraska isn't the only state eyeing sports betting as a revenue solution. It's just the latest. A new report suggests legalizing online sports betting in Nebraska could generate nearly $87 million over five years, with much of it earmarked for property tax relief. But zoom out, and the bigger story becomes clear: States across the country are increasingly turning to sports betting to fund budgets, without raising traditional taxes. But it's changing how tax systems are built. The Nebraska Example Is Just the Starting Point The Nebraska proposal is straightforward: Legalize online sports betting Capture revenue already leaving the state Use a large portion of it to offset property taxes Right now, Nebraska only allows in-person betting. But residents are already crossing state lines — or attempting to place bets online — meaning the demand (and money) is already there. The state just isn't collecting it, which is the argument being made in dozens of other states. A Nationwide Shift: Sports Betting as a Revenue Engine Since the U.S. Supreme Court struck down the federal ban on sports betting in 2018, states have moved quickly. Today, the majority of states allow some form of sports betting, and many have expanded into online platforms, where most of the revenue actually comes from. The result: Billions in new tax revenue A rapidly growing industry A new category of “behavior-based” taxation States like New York, New Jersey, and Pennsylvania now generate hundreds of millions annually from sports betting taxes alone. Crucially, online betting, not in-person, drives the vast majority of that revenue. Why States Keep Expanding It The appeal is obvious. Sports betting offers something most tax policies don't: Voluntary participation A broad user base Fast revenue growth Political palatability In other words, it doesn't feel like a traditional tax increase That makes it easier to pass, especially when paired with promises like property tax relief, education funding, or infrastructure support. But the Revenue Isn't Always What It Seems The big numbers can be misleading. Nebraska's projected $87 million over five years sounds significant until you break it down: It equates to about $17 million per year For a state budget, that's helpful, but not transformative. And, this isn't unique to Nebraska. Across the country, sports betting revenue tends to: Grow quickly at first Level off over time Depend heavily on market size and competition States with smaller populations or strong competition from neighboring states often see more modest returns. The Real Strategy: Replace, Not Just Raise This is where the trend gets more interesting. States aren't just adding sports betting revenue. They're using it to offset other taxes. In Nebraska's case: A large portion of revenue would go toward property tax relief In other states: Funds are directed toward education Infrastructure General budget support This reflects a broader shift: Tax systems are becoming more dependent on targeted, activity-based revenue instead of broad-based increases. The Tradeoffs States Are Weighing Of course, the expansion of sports betting isn't without debate. Opponents point to: Increased problem gambling Financial strain on vulnerable populations Long-term social costs Supporters argue: The activity already exists (often across state lines or illegally) Regulation makes it safer It allows states to capture revenue that would otherwise be lost This tension is playing out in nearly every state considering expansion. What This Means for Taxpayers Even if you never place a bet, this trend matters. Because it reflects how governments are thinking about taxes: Shift away from broad increases Target specific behaviors Capture revenue from optional activities Use that revenue to offset more visible taxes In practical terms, that could mean: Slightly lower property taxes More reliance on “sin taxes” Greater variability in state revenue streams Nebraska's proposal isn't just about sports betting. It's about how states are rethinking revenue. From coast to coast, governments are looking for ways to fund budgets without raising traditional taxes — and sports betting has become one of the most popular tools. The question isn't whether more states will adopt it. It's how much they'll come to depend on it.   Thu, 28 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/did-you-repay-money-you-paid-taxes-on-in-a-prior-year-there-is-a-solution-to-provide-tax-relief/46750 https://www.taxwiz.net/blog/did-you-repay-money-you-paid-taxes-on-in-a-prior-year-there-is-a-solution-to-provide-tax-relief/46750 Article Highlights: Repaid Income that Was Taxed in a Prior Year Claim of Right Doctrine Common Situations for Repayment Relief Mechanisms: Deduction or Credit Determining the Best Option If you've found yourself in a situation where you've repaid income that you initially reported as taxable in a prior year, you might be eligible for some tax relief through the Claim of Right doctrine. Let's explore how this might apply to you and how you can potentially recover some taxes from those repayments. What is the Claim of Right Doctrine? The Claim of Right doctrine is designed to ensure that taxpayers are not penalized for taxes on income that they later had to repay. Originating from a landmark Supreme Court case, this principle ensures that taxpayers can't defer taxes simply because they might need to repay income later. Common Situations for Repayment Several scenarios might trigger the claim of right: Repayment of Bonuses: Whether it's repayment of signing or performance bonuses due to unmet requirements, employees might find themselves paying back monies they previously reported as income. Refund from Disputed Sales: In cases where a business must return funds for refunded goods in a different tax year. Overpaid Benefits: This applies to overpayments of unemployment compensation or Social Security benefits. Compensation Clawbacks: Sometimes, executive compensation or royalties are subject to clawbacks due to disputes or under certain conditions. Relief Mechanisms: Deduction or Credit Unfortunately, relief is only available for a repayment over $3,000, in which case taxpayers have two primary options for relief: Itemized Deduction: By taking a deduction on IRS Schedule A for the repaid amount in the current year, your taxable income will be lowered, potentially benefiting those in higher tax brackets. Tax Credit: This offers a direct reduction in the tax paid for the year in which you repaid the income, and might provide immediate financial relief. Determining the Better Option To decide whether the deduction or the credit is more advantageous, we can compare the tax outcomes in two scenarios: Repayment Year Calculation: Calculate your tax as usual, then re-calculate it by applying the deduction, and see the potential tax saving. Original Income Year Calculation: Recompute the the tax for the year when the income was included without the repaid amount to determine potential credit. Whichever option leads to a lower tax liability in the repayment year tends to be the best choice. However, if your other deductions eligible to be itemized plus the repayment amount totals less than the standard deduction in the repayment year, you likely won't want to use the itemized deduction recovery method. Contact Us for Assistance Navigating these tax issues can be complex. If you have questions or need assistance with understanding how the Claim of Right doctrine might impact your taxes, please contact this office to help you through this process and ensure you make the most informed decision possible.   Tue, 26 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/portlands-most-hated-tax-might-be-changing-heres-what-that-actually-means/46751 https://www.taxwiz.net/blog/portlands-most-hated-tax-might-be-changing-heres-what-that-actually-means/46751 If you've ever lived in Portland, you probably already know the tax. It's not the biggest. It's not the most complex. But it might be the most frustrating. The city's Arts Education and Access Tax — better known simply as the “arts tax” — has been a source of complaints for years. And now, officials are trying to fix it. However, the proposed solution raises an interesting question: Can you make a tax less annoying... without actually reducing it? A Tax People Love to Hate The Portland arts tax has been around since 2012, when voters approved a flat annual charge to fund arts education and nonprofit programs. Here's how it currently works: Most residents over 18 pay $35 per year It applies to anyone earning more than $1,000 annually It generates roughly $12 million each year The funds primarily support public school arts teachers and nonprofit programs On paper, it's straightforward. In practice, it's been anything but. Unlike most taxes, this one isn't automatically withheld or bundled into your regular tax return. You have to remember to pay it separately — and if you don't, late fees and even collections can follow. That alone has made it one of the most criticized local taxes in the country. The New Proposal: Fewer People Pay, But They Pay More Now, Portland leaders are proposing a major overhaul. Under the new plan: The tax would increase to $50 per individual and $100 for joint filers Lower-income residents would be exempt (based on taxable income thresholds) About 151,000 people — roughly one-third of current taxpayers — would no longer have to pay In other words: Fewer people pay, but those who do pay... pay more Interestingly, the proposal is designed to keep total revenue roughly the same, at least in the short term. Why Change It Now? The push to reform the tax didn't come out of nowhere. In recent months, the arts tax has been under renewed scrutiny for a few key reasons: 1. It Hasn't Kept Up With Inflation The tax has remained at $35 since 2012, meaning its real-world impact has declined over time. 2. Millions in Funds Sparked Debate Reports earlier this year highlighted concerns about millions of dollars sitting in reserves at certain points, raising questions about how efficiently funds were being distributed. 3. Collection Has Been a Headache Even city leaders acknowledge the system is clunky. As one official put it bluntly, they haven't found a way to make the tax “not annoying” — only less so. What This Really Means: A Shift in Who Pays At its core, this proposal isn't about raising or lowering the tax. It's about redistributing it. The city is trying to: Reduce the burden on lower-income residents Shift more responsibility to higher earners Simplify compliance (at least in theory) That aligns with a broader trend we're seeing across the country: Taxes aren't just being increased — they're being wholly restructured. From millionaire taxes to second-home surcharges, governments are increasingly asking: Who should pay... and how much? The Bigger Lesson for Taxpayers Everywhere Even if you've never been to Portland, this story highlights something important: The biggest frustration with taxes isn't always the amount, but the experience itself. In this case, the complaints weren't just about $35. They were about: Having to remember to pay it Getting hit with penalties Dealing with a system that felt disconnected from how people normally pay taxes This is a lesson that applies far beyond Oregon. Portland's arts tax overhaul is an attempt to fix a system that's been unpopular for years, not by eliminating it, but by reshaping it. Fewer people may pay. Some will pay more. And, the city hopes it will feel less frustrating overall. Whether it works remains to be seen. One thing, though, is very clear: When it comes to taxes, how you pay can matter just as much as how much you pay.   Tue, 26 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/unlocking-tax-savings-navigating-the-complex-world-of-foreign-travel-deductions/46748 https://www.taxwiz.net/blog/unlocking-tax-savings-navigating-the-complex-world-of-foreign-travel-deductions/46748 Article Highlights Foreign Travel The "All or Nothing" Exceptions Business Days Personal Days Allocation of Expenses Special Considerations Examples Recordkeeping Conclusion When engaging in business overseas, it's crucial to understand how travel expenses are treated under U.S. tax law.Unlike domestic travel, where transportation costs are often fully deductible if the trip is "primarily" for business, foreign travel requires a more granular day-by-day calculation to account for personal time.This article provides a detailed look at what constitutes a business day versus a personal day, and how these distinctions affect the deductibility of travel expenses. No Itemized Deductions - First, understand all deductions referenced in this material refer to expenses deducted by a business as part of a business' tax return and not as an itemized deduction by an employee. Under TCJA and OBBBA employee business expenses are no longer allowed as an itemized deduction. The "All or Nothing" Exceptions - Under IRS Publication 463, an entire international transportation cost (airfare, trains, or ships) can be considered a business expense if the taxpayer meets any one of four primary exceptions: The One-Week Rule: Taxpayer is outside the United States for seven consecutive days or less. In this count, do not include the day leaving the U.S., but do include the return day. The 25% Rule: Taxpayer is away for more than a week, but less than 25% of the total time outside the U.S. is spent on personal activities. In this calculation, count both the day of departure and the day of return as business days. Lack of Control: Taxpayer who does not have "substantial control" over arranging the trip. Generally, this means they are not a managing executive or related to the employer. Primary Motivation: Taxpayer can establish that a personal vacation was not a major consideration in the decision to make the trip. If the taxpayer does not meet any of these exceptions, they must allocate their transportation costs based on the ratio of business days to the total number of days abroad. Business Days -The definition of a business day for tax purposes is broader than just time spent in meetings. A day is classified as a business day if it falls into one of the following categories: Transportation Days: Days spent traveling directly to or from a business destination. If a non-direct route is taken for personal reasons, only count the days it would have taken to travel a reasonably direct route. Days of Presence: Any day where presence is required at a specific place for a bona fide business purpose. Even if the actual business task takes only an hour, the entire day counts as a business day. Principal Activity Day: This is any day where the principal activity during normal business hours is the pursuit of a trade or business. Generally, this means more than half of normal business hours (usually more than four hours) are dedicated to work. The "Sandwich" Weekend Rule: Weekends, holidays, and other standby days are treated as business days if they fall between two business days and it would not be practical to return home. For example, if there is a meeting on Friday and another on Monday, the intervening Saturday and Sunday are business days. Circumstances Beyond Control: Days the individual intended to work but were prevented from doing so by unforeseen circumstances, such as weather or a strike, count as business days. Personal Days - These are days where the main activity is personal in nature, such as sightseeing or visiting with friends and family. Days that are not spent working, and don't bookend business activities, are generally considered personal. Allocation of Expenses - To allocate expenses correctly, one must compute the ratio of business days to the total number of days on the trip. This ratio determines the proportion of travel costs deductible against business income. Travel Costs - Include transportation expenses such as airfare and train tickets. These costs are generally allocated based on the percentage of business days to total days. Accommodation and Meal Costs - Generally, only the portion of these expenses that correspond to the business days are deductible. However, there are exceptions, such as when staying over a weekend between business activities, where accommodation remains deductible. Incidental Expenses - Expenditures such as tips, local transportation, currency exchange fees, and calling cards—related to business—are deductible on the business days incurred. Special Considerations for Foreign Travel - Several specific rules may impact the deductibility of travel expenses in foreign countries: Travel Primarily for Business - If the trip is primarily for business, and not merely a vacation that incidentally includes business activities, transportation costs to and from the overseas location are typically fully deductible. The trip is primarily for business if more than 50% of the days are business days. Travel Primarily for Personal Reasons - If the trip is primarily for personal reasons, no travel costs can be deducted, but expenses directly attributable to business activities during the trip (e.g., conference fees) may be. Travel Outside Continental U.S. for More Than a Week - If the trip is longer than one week and includes both business and personal activities, the taxpayer must allocate their travel expenses. However, if less than 25% of the time abroad is for non-business purposes, the IRS may allow full deductibility of transportation costs. Exceptions - Trips that include significant personal aspects but are uncontrollably lengthened due to business reasons (like attending last-minute meetings) can still result in a significant portion of their costs being deductible. Examples - Consider the following scenarios that differentiate between primarily business, primarily personal, and mixed-use travel: Primarily Business Travel Example: A business consultant based in Miami spends two weeks in Paris. The first 10 days involve business meetings, followed by a 4-day vacation. All travel costs to and from Paris are deductible because more than 50% of the trip is for business. Expenses incurred directly for business (conference fees, business-related meals) are also deductible. Accommodations and meals for the full stay, considering the intermingling of business activities, are apportioned according to business days. Primarily Personal Travel Example: An architect travels from Seattle to Rome for 10 days, attending a 3-day seminar. The trip is primarily for leisure, as less than 50% of the time is business-related. Only the seminar fee and any directly related expenses (business meals during the seminar) are deductible. Mixed-Use Travel Example: A consultant travels from the U.S. to London for 12 days: 6 for business and 6 for leisure. If they attended meetings on the first 3 and last 3 days, travel days could be counted as business days. Accommodation and meal costs should be apportioned 50% as business expenses, corresponding with 6 business days out of 12. The IRS might allow a more favorable split for transportation costs if work commitments influenced the travel duration. Recordkeeping - Meticulous documentation is crucial to substantiate travel deduction claims. Recordkeeping should include: Receipts and Itineraries: For all accommodation, meals, and relevant business transaction proof. Diaries or Logs: Detailed logs of daily activities distinguishing business from personal activities. Correspondence and Agenda: Emails or memos confirming meetings, seminars, or work done overseas. Conclusion - Navigating the complexities of deducting foreign travel expenses requires careful consideration of IRS rules regarding what constitutes business days and how to allocate costs appropriately. By understanding these regulations and maintaining diligent records, you can ensure compliance while capitalizing on deductive opportunities. Contact this office with questions or assistance with issues related to foreign business travel. Thu, 21 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/the-real-cost-of-hiring-its-not-just-salary-anymore/46749 https://www.taxwiz.net/blog/the-real-cost-of-hiring-its-not-just-salary-anymore/46749 Hiring feels like growth. More people. More capacity. More momentum. But here's what most business owners underestimate: The salary is just the starting point. By the time you factor in everything else, that “$70,000 hire” can quietly become a $90,000—or even $100,000—decision. And if you don't plan for it? Hiring can slow your business down instead of moving it forward. Why Hiring Feels Simpler Than It Actually Is On paper, hiring looks straightforward. You need help. You set a salary. You make the offer. But the real cost doesn't show up in the offer letter. It shows up in everything that comes after. The True Cost Breakdown (What Most People Miss) Salary is only one piece of the equation. Here's what actually gets added on: 1. Payroll Taxes Employers are responsible for their share of: Social Security and Medicare Federal and state unemployment taxes That alone can add 7-10%+ on top of base salary. 2. Benefits (Even Basic Ones Add Up) Depending on your setup, this may include: Health insurance contributions Retirement plans Paid time off Even modest benefits packages can significantly increase your total cost per employee. 3. Software, Tools, and Equipment Every new hire needs access to: Software subscriptions Systems and platforms Equipment or workspace Individually small. Collectively meaningful. 4. Management and Training Time This is the most overlooked cost. New hires require: Onboarding Training Ongoing management Which means someone on your team is spending time not doing their core work. That's a real cost—even if it doesn't show up on a payroll report. Full-Time vs. Contractor: Not Always an Obvious Choice Hiring full-time isn't always the best first move. In many cases, a contractor or fractional role can: Reduce upfront costs Eliminate benefit obligations Provide specialized expertise Give you flexibility as you grow This is why more businesses are turning to: Fractional CFOs Outsourced marketing teams Contract-based specialists It's not about avoiding hiring. It's about hiring intentionally. When Hiring Actually Hurts Growth It sounds counterintuitive—but hiring too early can create pressure instead of relief. Here's how it happens: Revenue isn't consistent yet Cash flow tightens Fixed payroll costs increase  You feel pressure to “feed” the hire Instead of freeing you up... It adds stress to every decision. Growth doesn't just come from adding people. It comes from adding people at the right time. A Smarter Approach to Hiring Decisions Before you make your next hire, ask: Is this role tied directly to revenue or efficiency? Can this function be outsourced first? Do we have consistent cash flow to support this long-term? What is the fully loaded cost—not just the salary? Because clarity here protects you later. What Strong Businesses Do Differently They don't just hire when they feel busy. They hire when the numbers support it. They: Forecast the full cost Understand the ROI of the role Use flexible resources when needed Scale their team strategically—not reactively That's what keeps growth sustainable. Final Thought Hiring is one of the biggest investments you'll make in your business. Done right, it accelerates growth. Done too early—or without a full picture—it can slow everything down. The difference isn't instinct. It's clarity. Before your next hire, run the numbers—not just the salary. Contact this firm today to evaluate the true cost of hiring, explore smarter staffing options, and make confident decisions that support long-term growth. Thu, 21 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/june-2026-individual-due-dates/46746 https://www.taxwiz.net/blog/june-2026-individual-due-dates/46746 June 1 - Final Due Date for IRA Trustees to Issue Form 5498 Final due date for IRA trustees to issue Form 5498, providing IRA owners with the fair market value (FMV) of their IRA accounts as of December 31, 2025. The FMV of an IRA on the last day of the prior year (Dec. 31, 2025) is used to determine the required minimum distribution (RMD) that must be taken from the IRA if you are age 73 or older during 2026.   June 10 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during May, you are required to report them to your employer no later than June 10. You can use IRS Form 4070 or your own statement that includes your signature; name, address and Social Security number; employer's name (or establishment's name if different) and address; month or period the report covers, and total of tips received during that month or period. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 8 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed. June 15 - Estimated Tax Payment Due This is the last day to timely make your second quarter estimated tax installment payment for the 2026 tax year. Our tax system is a “pay-as-you-earn” system. To facilitate that concept, the government has provided several means of assisting taxpayers in meeting the “pay-as-you-earn” requirement. These include: Payroll withholding for employees; Pension withholding for retirees; and Estimated tax payments for self-employed individuals and those with other sources of income not covered by withholding. When a taxpayer fails to prepay a safe harbor (minimum) amount, they can be subject to the underpayment penalty. This penalty is equal to the federal short-term rate plus 3 percentage points, and the penalty is computed on a quarter-by-quarter basis. Federal tax law does provide ways to avoid the underpayment penalty. If the underpayment is less than $1,000 (the “de minimis amount”), no penalty is assessed. In addition, the law provides "safe harbor" prepayments. There are two safe harbors: The first safe harbor is based on the tax owed in the current year. If your payments equal or exceed 90% of what is owed in the current year, you can escape a penalty. The second safe harbor is based on the tax owed in the immediately preceding tax year. This safe harbor is generally 100% of the prior year's tax liability. However, for taxpayers whose AGI exceeds $150,000 ($75,000 for married taxpayers filing separately), the prior year's safe harbor is 110%. Example: Suppose your tax for the year is $10,000 and your prepayments total $5,600. The result is that you owe an additional $4,400 on your tax return. To find out if you owe a penalty, see if you meet the first safe harbor exception. Since 90% of $10,000 is $9,000, your prepayments fell short of the mark. You can't avoid the penalty under this exception. However, in the above example, the safe harbor may still apply. Assume your prior year's tax was $5,000. Since you prepaid $5,600, which is greater than 110% of the prior year's tax (110% = $5,500), you qualify for this safe harbor and can escape the penalty. This example underscores the importance of making sure your prepayments are adequate, especially if you have a large increase in income. This is common when there is a large gain from the sale of stocks, sale of property, when large bonuses are paid, when a taxpayer retires, etc. Timely payment of each required estimated tax installment is also a requirement to meet the safe harbor exception to the penalty. If you have questions regarding your safe harbor estimates, please call this office as soon as possible. CAUTION: Some state de minimis amounts, safe harbor estimates rules, and the dates estimate payments are due are different than those for the Federal estimates. Please call this office for particular state safe harbor rules. June 15 - Taxpayers Living Abroad  If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, June 15 is the filing due date for your 2025income tax return and to pay any tax due. Those impacted by the terrorist attacks in Israel throughout 2024 and 2025 have until September 30, 2026, to file and pay taxes that are otherwise due on or after September 30, 2025, and before September 30, 2026. The Sept. 30, 2026 extension also applies to time-sensitive tax acts that were previously postponed by IRS.If your return has not been completed and you need additional time to file your return, file Form 4868 to obtain 4 additional months to file. Then, file Form 1040 or 1040-SR by October 15. However, if you are a participant in a combat zone, you may be able to further extend the filing deadline (see below). Caution: This is not an extension of time to pay your tax liability, only an extension to file the return. If you expect to owe, estimate how much, and include your payment with the extension. If you owe taxes when you do file your extended tax return, you will be liable for both the late payment penalty and interest from the due date.Combat Zone - For military taxpayers in a combat zone/qualified hazardous duty area, the deadlines for taking actions with the IRS are extended. This also applies to service members involved in contingency operations, such as Operation Iraqi Freedom or Enduring Freedom. The extension is for 180 consecutive days after the later of: The last day a military taxpayer was in a combat zone/qualified hazardous duty area or served in a qualifying contingency operation, or has qualifying service outside of the combat zone/qualified hazardous duty area (or the last day the area qualifies as a combat zone or qualified hazardous duty area), or The last day of any continuous qualified hospitalization for injury from service in the combat zone/qualified hazardous duty area or contingency operation, or while performing qualifying service outside of the combat zone/qualified hazardous duty area. In addition to the 180 days, the deadline is also extended by the number of days that were left for the individual to take an action with the IRS when they entered a combat zone/qualified hazardous duty area or began serving in a contingency operation. It is not a good idea to delay filing your return because you owe taxes. The late filing penalty is 5% per month (maximum 25%) and can be a substantial penalty. It is generally better practice to file the return without payment and avoid the late filing penalty. We can also establish an installment agreement, which allows you to pay your taxes over a period of up to 72 months. Please contact this office for assistance with an extension request or an installment agreement. Weekends & Holidays: If a due date falls on a Saturday, Sunday or legal holiday, the due date is automatically extended until the next business day that is not itself a legal holiday.  Disaster Area Extensions:Please note that when a geographical area is designated as a disaster area, due dates will be extended. For more information whether an area has been designated a disaster area and the filing extension dates visit the following websites: FEMA: https://www.fema.gov/disaster/declarationsIRS: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations   Wed, 20 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/june-2026-business-due-dates/46747 https://www.taxwiz.net/blog/june-2026-business-due-dates/46747 June 15 - Employer's Monthly Deposit DueIf you are an employer and the monthly deposit rules apply, June 15 is the due date for you to make your deposit of Social Security, Medicare, and withheld income tax for May 2026. This is also the due date for the nonpayroll withholding deposit for May 2026 if the monthly deposit rule applies. June 15 - CorporationsDeposit the second installment of estimated income tax for 2026 for calendar year corporations. Weekends & Holidays: If a due date falls on a Saturday, Sunday or legal holiday, the due date is automatically extended until the next business day that is not itself a legal holiday. Disaster Area Extensions: Please note that when a geographical area is designated as a disaster area, due dates will be extended. For more information whether an area has been designated a disaster area and the filing extension dates visit the following websites: FEMA: https://www.fema.gov/disaster/declarationsIRS: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations   Wed, 20 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/keeping-it-in-the-family-tax-risks-and-benefits-of-home-title-transfers/46744 https://www.taxwiz.net/blog/keeping-it-in-the-family-tax-risks-and-benefits-of-home-title-transfers/46744 Article Highlights Gift or Life Estate Parent Continues to Reside in the Homeo Key Featureso Tax and Legal Considerations Parent No Longer Resides in the Home Adding Child's Name to the Title Comparison to a Formal Life Estateo Formalizationo Key Elementso Immediate and Legal Effectso Financial and Tax Implicationso Risks A frequently encountered issue is when an elderly parent turns the title of his or her home over to an adult child or other beneficiary and continues to reside in the home, thinking that is the correct thing to do but without considering the tax repercussions. While "parent" and "child" are referenced in this analysis, these rules are equally applicable to any other relative or even to an unrelated person. This situation raises important tax questions: How is a future sale of the home treated if it is sold before the parent's death? Will the Sec 121 home sale gain exclusion apply? Is a gift tax return required? What is the tax result if the parent continues to reside in home? What is the tax result if the parent moves out of the home? Parent Continues to Reside in the Home - If a parent continues to reside in their home and maintain ownership privileges without a formal written life estate deed, it typically results in an implied or de facto life estate. In this scenario, the homeowner transfers the title to another person, often an adult child, but continues to live at the property and act as if they own it without executing a formal life estate deed. A formal life estate is generally established through a deed explicitly reserving lifetime occupancy rights, whereas a de facto arrangement emerges based on the behavior of the involved parties. Key Features:o Transfer of Title: The original property owner transfers legal ownership to another party, known as the "remainderman" or “remainder beneficiary.”o Continued Residency: The original owner remains living in the home, financially responsible for taxes, and maintaining the property as though they retain ownership.o Informal Agreement: Unlike a formal life estate, this arrangement might not be documented in writing; however, all parties understand that the original owner will stay for life.o Risks: Without formal written documentation for a de facto life estate, the original owner faces the risk that the new titleholder could sell the home and undermine their intended arrangement. Tax and Legal Considerations: The IRS often classifies a de facto life estate as a retained life interest under Section 2036 of the Internal Revenue Code, leading to several implications:o Inclusion in Estate: At the time of the resident's death, the full fair market value of the property is included in their estate for tax purposes, despite the prior transfer of legal title.o Basis Adjustment: The beneficiary benefits from a "step-up" in basis to the fair market value at the original owner's death, potentially reducing future capital gains taxes if the property is sold.o Gift Tax Implications: Since the original owner keeps the right to reside in the home, the transfer is often seen as an "incomplete gift," generally negating the need for an immediate gift tax return.o Medicaid Considerations: Informal property transfers might fall under scrutiny during the Medicaid "look-back" period, affecting eligibility for long-term care benefits. Parent No Longer Resides in the Home: If an elderly parent transfers the title but does not continue living in the home, it is considered a gift. Since no life estate is established, a gift tax return is necessary, and the child's basis in the home would be the parent's adjusted basis at the time of the gift. Moreover, if the child later sells the home, they will only qualify for the Section 121 home sale gain exclusion if they meet the ownership and occupancy time requirements themselves. Adding Child's Name to the Title: When a parent adds a child's name to the title but retains a partial interest, the sale of the home involves both parties. Under Section 121, the parent can exclude their share of the gain if they satisfy the eligibility criteria. A gift tax return must be filed in the year the child's name is added to the title, and the child's basis will be their portion of the parent's adjusted basis. The child will qualify for the Section 121 exclusion only if they independently fulfill the necessary conditions. Comparison to a Formal (de jure) Life Estate: A life estate provides a structured legal framework that divides property ownership between two parties over different timeframes, like a de facto life estate but with distinct differences. Formalization:o Life Estate: Requires a legal deed recorded in local land records, clearly defining the roles of the life tenant and remainderman.o De Facto Life Estate: Informal and based on behavior, lacking written documentation. Key Elements:o Life Tenant: Has the right to live in or use the property and is responsible for its upkeep.o Remainderman: Holds future interest in the property and assumes ownership upon the life tenant's death.o Immediate Transfer: Upon the life tenant's death, the property transitions directly to the remainderman, bypassing probate processes, thus saving time and cost. Immediate and Legal Effects:o Irrevocability: Once established, a traditional life estate is difficult to alter without the remainderman's agreement, unlike the informal nature of a de facto estate.o Control Limitations: The life tenant cannot sell or mortgage the property without the remainderman's consent, whereas a de facto arrangement might lack such constraints formally written.o Responsible for Upkeep: The life tenant must handle property taxes and maintenance.o Medicaid Estate Recovery involves the attempt by Medicaid programs to reclaim expenses for benefits given to specific individuals after they pass away, such as those for nursing facilities, hospitals, and prescription medications. A life estate structure can shield the home from such recovery efforts. This is because, upon the tenant's passing, ownership of the home is transferred instantly to the remainderman, preventing its sale for recovery purposes. Financial and Tax Implications:o Tax Basis Adjustment: Similar benefits, where the remainderman receives a "stepped-up" basis upon the life tenant's death, reducing potential capital gains taxes.o Gift Tax Consideration: Both situations have gift tax implications, but a life estate results in an immediate liability upon creation.o Home Taxes and Mortgage Interest in a De Facto Life Estate: - Life Tenant Responsibility and Deduction: The individual who retains the right to live in the home (the de facto life tenant) is treated as the owner for the purposes of property and income taxes. They have the right to claim the deductions on their itemized tax return (Schedule A of Form 1040) for the property taxes and mortgage interest they actually pay.- Remainderman Position: The remainderman has a future interest in the property but generally no right to occupy it or responsibility for its ongoing costs during the life tenant's lifetime. Therefore, they cannot deduct the expenses and taxes during this period.- Mortgage Interest Deduction: The person paying the mortgage interest can claim the deduction, even if they are not the primary person named on the mortgage note, provided they are legally obligated or responsible for the payments. Risks: Creditor Exposure: The remainderman's creditors can place claims against the property. Medicaid Challenges: Transfers can impact Medicaid eligibility due to look-back periods. Medicaid eligibility is determined by examining an applicant's income and assets, along with a lookback period designed to verify that no assets were given away to meet eligibility requirements. If someone establishes a life estate and subsequently seeks Medicaid assistance, they might encounter eligibility challenges based on when the life estate was established in relation to their application. Marital Claims: The property may be a marital asset in case of the remainderman's divorce. As you can see, transferring a home to another person can have significant tax and financial implications. Before undertaking such a move, it is prudent to consult with this office first.       Tue, 19 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/gen-z-is-earning-differentlyand-most-are-getting-taxes-wrong/46745 https://www.taxwiz.net/blog/gen-z-is-earning-differentlyand-most-are-getting-taxes-wrong/46745 This generation doesn't wait for a paycheck. They create income on their own terms. Selling products online. Editing videos for clients. Running social media accounts. Picking up freelance work between classes or jobs. It's flexible. It's fast. And in a lot of cases—it works. But there's one part no one really talks about: Most of it isn't being tracked—or taxed—correctly. And that mistake doesn't show up right away... it shows up later, all at once. The New Income Reality (That No One Really Explains) For Gen Z, income rarely comes from just one place. It's usually a mix: A part-time job A few freelance clients Money from a side hustle Payments from apps or platforms Maybe even a little creator income Individually, none of it feels like a big deal. But combined? It absolutely is. Because from a tax perspective, it's all income—and it all needs to be accounted for. Where Things Start to Go Wrong The problem isn't effort. It's that no one really teaches this. So a lot of people assume: “If it's small, it doesn't matter” “If I didn't get a form, I don't need to report it” “I'll deal with it when I file” That last one is where most issues start. Because by the time you “deal with it,” the decisions that mattered have already been made. Mistake #1: Not Tracking Income Clearly When money comes in from multiple places, it's easy to lose track. A few payments here. A deposit there. Something paid through an app that you forget about. But over time, it adds up. And without a clear record: You don't know what you actually earned You can't report accurately You're more likely to miss income At the same time, many platforms are now reporting earnings directly. So if your numbers don't match what's reported... That's when problems start. Mistake #2: Ignoring Estimated Taxes This is where most first-time earners get caught off guard. If you're making money without taxes being withheld—like freelance work, side gigs, or creator income—you're expected to pay taxes throughout the year. Not just once at filing. These are called estimated tax payments. And if you skip them, you may end up with: Penalties Interest A much larger bill than expected It's not obvious—but it's important. Mistake #3: Misunderstanding Write-Offs Write-offs get talked about a lot online. But they're often misunderstood. A write-off isn't: Everything you buy Anything loosely related to your work A way to avoid taxes entirely It has to be both: Ordinary and necessary for what you do. For example: A content creator can deduct editing tools or software A freelancer can deduct business-related subscriptions An online seller can deduct inventory costs But guessing—or copying advice from social media—can lead to mistakes. Mistake #4: Overlooking How Income Is Reported Today The way income is tracked has changed. More transactions are being reported: Payment apps Online platforms Digital marketplaces And in some cases, things like crypto or digital assets can also trigger reporting requirements. In other words: There's less room for things to go unnoticed. Which makes it even more important to stay organized from the start. Why This Matters Earlier Than You Think Getting this wrong once? Usually fixable. But when it keeps happening, it builds: Back taxes Penalties Stress Missed opportunities to save The good news? Gen Z has an advantage most people don't: Time to get this right early. The Opportunity: Build Good Habits Now When you understand your income and taxes early, you: Keep more of what you earn Avoid surprises at tax time Make better financial decisions Build confidence as your income grows It doesn't have to be complicated. But it does have to be intentional. Final Thought Earning money in new ways is a huge opportunity. But without structure, it can also create unnecessary problems. The goal isn't to overcomplicate things— It's to get the basics right early, so everything gets easier as you grow. If you (or someone in your family or team) is earning income from multiple sources and not sure how it all fits together— Contact this firm today. The earlier you get this right, the easier everything becomes.   Tue, 19 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/unlocking-health-care-savings--how-hsas-and-hdhps-can-combat-rising-insurance-costs/46742 https://www.taxwiz.net/blog/unlocking-health-care-savings--how-hsas-and-hdhps-can-combat-rising-insurance-costs/46742 In the face of escalating healthcare costs, many individuals and families are seeking innovative strategies to manage expenses effectively. One emerging alternative gaining traction is the combination of Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs). This dynamic duo not only empowers consumers with greater control over their healthcare spending but also offers potential tax advantages, making it an appealing option in today's financial landscape. Sun, 17 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/how-to-reconcile-your-accounts-in-quickbooks-online-step-by-step-guide-for-2026/46743 https://www.taxwiz.net/blog/how-to-reconcile-your-accounts-in-quickbooks-online-step-by-step-guide-for-2026/46743 If there's one QuickBooks task that separates clean books from chaos, it's this: Reconciliation. Yet, it's also one of the most skipped, or misunderstood, steps in QuickBooks Online. If your reports don't match your bank balance, your numbers feel 'off,' or tax season always turns into a scramble, there's a good chance reconciliation is the missing piece. Here's exactly how to do it — step by step — in QuickBooks Online. What 'Reconciliation' Actually Means Reconciliation simply means making sure the transactions in QuickBooks match your bank and credit card statements You're confirming that: Every transaction is recorded Nothing is duplicated Nothing is missing If everything lines up, your books are accurate. If not, you've got something to fix, and it's better to catch it now than at tax time. Before You Start: What You'll Need Before reconciling, make sure you have: Your latest bank or credit card statement Access to QuickBooks Online All transactions entered (or bank feed updated) Pro tip: Always reconcile monthly, not once a year. Step 1: Go to the Reconcile Tool In QuickBooks Online: Click Accounting (left menu) Select Reconcile From there: Choose the account (bank or credit card) Enter the statement ending balance Enter the statement ending date Click Start reconciling Step 2: Match Transactions You'll now see a list of transactions. Your job: Check off each transaction that appears on your bank statement As you do this: The difference at the top should move toward $0.00 Step 3: Watch for Red Flags If things don't match, look for: Duplicate Transactions Common when: Bank feeds import twice Manual entries overlap with imports Missing Transactions If it's on your bank statement but not in QuickBooks: You'll need to add it Incorrect Amounts Even small differences matter — fix them immediately. Uncategorized Items These may reconcile, but they'll cause problems later (especially at tax time). Step 4: Get the Difference to $0.00 This is the goal: Difference = $0.00 If it's not zero: Double-check amounts Review unchecked transactions Look for duplicates Do NOT force it to balance with adjustments unless you understand why it's off. Step 5: Finish and Save the Reconciliation Once the difference is $0: Click Finish now QuickBooks will save your reconciliation and generate a report. Save that report. It's your audit trail. Step 6: Review Your Reconciliation Report After finishing: Go to Reports → Reconciliation Reports This shows: What was matched What's still outstanding Your ending balance If something looks off, this is where you'll catch it. Common Mistakes to Avoid Even experienced users run into these: Reconciling Too Late Waiting months (or a year) makes errors harder to fix. Ignoring Small Differences A $5 error today can turn into a $5,000 issue over time. Using 'Plug' Adjustments Adding random entries just to make it balance creates bigger problems later. Not Reconciling Credit Cards These accounts are often overlooked and just as important. How Often Should You Reconcile? At minimum: Once per month per account If you have high transaction volume: Weekly is even better When to Bring in Help If you're seeing: Large unexplained differences Multiple months unreconciled Reports that don't make sense , it's worth having a professional review your books. Because reconciliation issues don't fix themselves — they compound into even worse problems that could seriously impact your bottom line. Reconciliation isn't just a QuickBooks task. It's the foundation of accurate financial reporting. Done consistently, it helps you: Trust your numbers Catch errors early Avoid tax-time stress Make better business decisions The best part? Once you get into a rhythm, it takes less than an hour per month. Sat, 16 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/a-surprise-refund-opportunity-millions-of-taxpayers-may-be-owed-covid-era-penalty-refunds/46739 https://www.taxwiz.net/blog/a-surprise-refund-opportunity-millions-of-taxpayers-may-be-owed-covid-era-penalty-refunds/46739 The pandemic disrupted... well, everything. Business operations. Filing deadlines. IRS processing. Even the way taxpayers interacted with the government changed almost overnight. Now, years later, a federal court case is reopening a question many assumed was already settled: Did the IRS improperly assess certain penalties and interest during the COVID era? And if so... Could taxpayers actually get that money back? For millions of individuals and businesses, the answer may be yes. Why This Matters Right Now A recent federal court decision interpreted disaster relief rules in a way that could dramatically expand pandemic-related deadline relief for taxpayers. The ruling centers around a provision in the tax code that automatically postpones certain tax deadlines during federally declared disasters. Since the federal COVID disaster declaration remained in effect from January 2020 through May 2023, the court concluded that many filing and payment deadlines during that window may have been postponed much longer than previously understood. The practical impact? Some penalties for late filing, late payment, and even related interest charges assessed during the pandemic years may not have been legally owed in the first place. That means taxpayers who paid those amounts could potentially qualify for refunds. The Clock Is Already Ticking Here's the part taxpayers shouldn't ignore: For many people, the deadline to preserve refund rights may be July 10, 2026. That deadline is tied to the statute of limitations for filing refund claims with the IRS. And this is where things get tricky. The legal issue is not fully resolved yet. The federal government is expected to challenge the court's decision through the appeals process. But waiting for the final outcome could create a problem. If taxpayers miss the filing deadline while the case works its way through the courts, they could permanently lose the ability to claim a refund later — even if the courts ultimately rule in favor of taxpayers. That's why many advisors are encouraging affected taxpayers to consider filing what's called a “protective refund claim.” What Is a Protective Refund Claim? Think of it like reserving your place in line. A protective refund claim doesn't guarantee a refund. Instead, it preserves your right to request one later if the courts ultimately uphold the broader interpretation of the COVID-era deadline relief rules. Without filing a claim before the statute expires, taxpayers may lose the ability to recover certain penalties and interest altogether. Who Could Be Affected? Potentially affected taxpayers may include: Individuals who filed tax returns late during the pandemic years Businesses assessed late payment penalties Taxpayers who entered installment agreements after penalties accrued Individuals or companies who paid significant IRS interest charges between 2020 and 2023 Taxpayers whose filing or payment deadlines fell during the federal COVID disaster period This could apply across multiple tax years and multiple return types. In some situations, the potential refunds may be relatively small. In others — particularly for businesses or higher-income taxpayers with larger balances due — the amounts could be substantial. There's One Big Frustration Ironically, the process itself may feel a little... outdated. Current guidance indicates these refund claims generally must be submitted on paper rather than electronically. That means taxpayers may need to prepare and mail formal documentation to the IRS to preserve their rights. Not exactly ideal in 2026. It's one reason taxpayer advocates are pushing for broader systemic relief rather than requiring millions of individual paper filings. Why This Could Become a Bigger Story This issue highlights something many taxpayers learned during the pandemic: Tax law gets complicated fast when emergency relief measures collide with real-world administration. The IRS issued wave after wave of temporary guidance during COVID. Filing dates shifted. Payment deadlines changed. Enforcement priorities evolved. Now the courts are stepping in to clarify whether some of those timelines were applied correctly. And depending on how the appeals process unfolds, this could become one of the more significant post-pandemic taxpayer relief developments we've seen. What Taxpayers Should Do Now If you or your business paid IRS penalties or interest connected to filing or payment delays during the COVID years, this is worth reviewing sooner rather than later. Waiting until the legal outcome is finalized may not be the safest strategy if filing deadlines expire first. Every taxpayer situation is different, and eligibility may depend on timing, tax years involved, and the specific penalties assessed. Questions About Whether You May Qualify? If you believe you may have been affected by COVID-era IRS penalties or interest charges, contact our office. We can help review your situation, determine whether filing a protective refund claim makes sense, and help you understand the potential opportunities — before important deadlines pass. Thu, 14 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/foreign-earned-income-exclusion-navigating-the-opportunities/46740 https://www.taxwiz.net/blog/foreign-earned-income-exclusion-navigating-the-opportunities/46740 Article Highlights: Qualification Criteria: Residency and Income Bona Fide Residence Test Physical Presence Test Tax Home and Abode What Constitutes a Foreign Country? Foreign Earned Income Defined Foreign Housing Exclusion or Deduction Spousal Benefits Impact on Other Tax Issues IRC Section 911 Foreign Earned Income Exclusion (FEIE) is a valuable tax provision for U.S. citizens and resident aliens living and working abroad. It allows eligible taxpayers to exclude a certain amount (adjusted annually for inflation) of foreign earned income from U.S. taxation. For the tax year 2026, the annual exclusion limitation is $132,900, up from 2025's limit of $130,000. In this article, we'll explore the qualifications, limitations, and nuances of this tax provision. Qualification Criteria: Residency and Income - To claim the FEIE, taxpayers must meet specific qualifications related to residency and the nature of their income. Taxpayers must establish residency in a foreign country either through the bona fide residence test or the physical presence test. Here's an in-depth look into the requirements: Bona Fide Residence Test: This test requires proving the taxpayer is a resident of a foreign country for an uninterrupted period that includes an entire tax year. Factors influencing bona fide residency include intentions to remain in the foreign country, setting up a permanent home, and retaining ties with the foreign country. Physical Presence Test: This test requires taxpayers to be physically present in a foreign country or countries for at least 330 full days within a 12-month period. Importantly, this timeframe can overlap two tax years, enabling flexibility.When the 12-month period for the physical presence test spans two tax years, the FEIE is prorated based on the number of qualifying days in each tax year. For the start and end of a foreign assignment, individuals often use the physical presence test to get a partial exclusion, as the bona fide residence test's "entire tax year" rule is often not met. The daily exclusion is calculated by dividing the annual limit by the days in the tax year and multiplying by the qualifying days in that year.The initial and final years of qualification are typically determined by achieving the 330-day presence across consecutive months that span two years. Tax Home and Abode: The concept of a tax home is pivotal to qualifying for the FEIE. Tax home is generally the place where a taxpayer permanently or indefinitely works as an employee or self-employed individual. However, an 'abode" is where family, personal, and economic ties are stronger. If a taxpayer's abode is in the U.S., even if their tax home is abroad, they may not qualify for the exclusion. What Constitutes a Foreign Country? For Section 911 purposes, a foreign country includes any territory under the jurisdiction of a government other than the United States. This includes any of its political subdivisions and excludes U.S. territories such as Puerto Rico and Guam. One part of the world that doesn't qualify as a foreign country for purposes of the FEIE is Antarctica because it does not meet the requirement that the territory be under the sovereignty of a government that is not the U.S. government. Foreign Earned Income Defined: Foreign earned income encompasses wages, salaries, self-employment income and professional fees for services performed in a foreign country. Excluded from this definition are income sources such as passive income (for example, rental income), dividends, interest, pension payments, and income paid by the U.S. government to its employees, including military pay. Foreign Housing Exclusion or Deduction: When a taxpayer qualifies for the foreign earned income exclusion under either the bona fide residence or physical presence tests, he/she can also claim an exclusion or a deduction from gross income for housing expenses. Eligible expenses include: Rent or the fair rental value of housing provided in kind by the employer, Utilities (except telephone charges), Real and personal property insurance, Occupancy taxes that may not otherwise be deductible, Nonrefundable fees paid for securing a lease, Furniture rental, Household repairs, and Residential parking. The following are not eligible expenses: mortgage payments, property purchases, capital improvements, domestic labor, pay TV subscription, interest and taxes if otherwise deductible, or expenses considered lavish or extravagant. Housing Exclusion -The housing exclusion applies only to amounts considered paid for with employer-provided amounts (examples: a salary, housing allowance or reimbursement). Housing Deduction -The housing deduction applies only to amounts paid for with self-employment earnings. The exclusion is calculated using these standard figures (based on a full 365-day qualifying period): Step 1: Determine the Qualified Foreign Housing Expenses which include reasonable expenses paid for housing (such as those noted above). Step 2: Determine the Maximum Housing Expense Limit (the "Ceiling") which is generally 30% of the maximum FEIE. For 2025, the standard limit is $39,000 ($130,000 × 0.30) and for 2026 it is $39,870 ($132,900 x 0.30). Step 3: Determine the Base Housing Amount (the "Floor") which is 16% of the maximum FEIE. For 2025, this is $20,800 ($130,000 × 0.16); $21,264 for 2026. Step 4: The Final Calculation – The exclusion is the qualified expenses (Step 1) limited to the maximum Housing Expense Limit (Step 2) and reduced by the Base Housing Amount (Step 3). Example (assuming housing expenses of $45,000 in 2025): 1. Qualified Foreign Housing Expenses - $45,0002. Maximum Housing Expense Limit - $39,0003. Lesser of line 1 or 2 - $39,0004. Base Housing Amount - $20,8005. Housing Exclusion or Deduction (Line 3 less Line 4) - $18,200 High Cost Locations – The standard Maximum Housing Expense Limit (line 2 of the prior example) is increased for high cost locations. The IRS annually issues a list of high cost locations and a Maximum Housing Expense Limit for those location. Notice 2025-16 includes the high cost locations for 2025. The following are examples from from Notice 2025-16:o Hong Kong - $114,300o Geneva - $102,600o Tokyo - $67,700o Singapore - $102,600 Partial Year Pro-Rating - If an exclusion or deduction is not for a full tax year, both the base amount and the limit must be pro-rated based on the number of qualifying days in the year. o Daily Base Amount: Calculated as (16% of FEIE) ÷ 365 days. For 2025, this is $56.99 per day; $58.26 for 2026.o Daily Standard Limit: Calculated as (30% of FEIE) ÷ 365 days. For 2025, this is $106.85 per day; $109.23 for 2026. The housing exclusion is deducted at Part VI of IRS Form 2555. Spousal Benefits: Each spouse in a married couple may separately claim the FEIE provided they individually meet the eligibility criteria. Therefore, if both spouses work abroad, they both can potentially exclude their qualifying income up to the maximum limit individually. Impact on Other Tax Issues: Earned Income Tax Credit (EITC) - Taxpayers excluding foreign earned income cannot claim the EITC, as the exclusion reduces the amount of earned income reportable on the U.S. tax return. Child Tax Credit (CTC) - Similarly, the refundable portion of the CTC is unavailable if electing the FEIE. Election - Once the election to claim a Sec 911 exclusion is made, it remains in effect for the tax year for which it was made and all subsequent tax years unless revoked with approval from the IRS. Generally, once revoked, the election may not be made again by a taxpayer until the sixth taxable year after the year in which the revocation was made. Foreign Tax Credit -Once a taxpayer chooses to exclude either foreign earned income or foreign housing costs, he/she cannot take a foreign tax credit for taxes on income which is excluded. In some situations, where the foreign tax is very high, claiming the FTC may be more beneficial than the FEIE. In which case a taxpayer may elect to claim the FTC rather than the FEIE. IRA Contributions – A taxpayer who excludes foreign earned income may not make an IRA contribution based upon the excluded compensation. U.S. Resident Aliens - For U.S. resident aliens from countries with tax treaties with the United States, the FEIE can be surprisingly relevant. Such individuals may be eligible to claim the exclusion under certain conditions, aligning with applicable treaty provisions and residency qualifications. Married Couples Living Apart - Special rules apply if taxpayer and spouse live apart and maintain separate foreign households. Both may be able to claim the foreign housing exclusion or the foreign housing deduction. This can be done if the spouses have different tax homes that are not within reasonable commuting distance of each other. Otherwise, one spouse only can exclude or deduct a housing amount. Waiver of Minimum Time Requirements – The minimum qualifying time requirement can be waived if a taxpayer must leave the foreign country due to war, civil unrest, or other adverse conditions. In the first quarter of each year, the IRS produces a list of the countries for which the residency periods are waived due to adverse conditions (e.g., war or civil unrest) in those countries in the prior year. Excluded Off the Bottom - In the distant past, both the exclusion and the additional housing allowance were deducted off-the-top. In other words, they were excluded at the taxpayer's top tax bracket. However, beginning in 2006 the exclusion is taken off the bottom or at the taxpayer's lowest tax bracket leaving the taxpayer's other income to be taxed at the taxpayer's top marginal rates. Result: the taxpayer's 'other' income is currently taxed at higher rates. Home Sale Gain Exclusion– The gain on the sale of a home located in a foreign country is not considered earned income, and so would not be eligible for the FEIE. However, taxpayers who sell their principal residence at a gain may claim a capital gain exclusion of up to $250,000 ($500,000 if married filing jointly), provided they have owned and used the home as their principal residence for at least two of the five years prior to the sale. It does not matter if the principal residence is located in the U.S. or a foreign country, as long as the 2-of-5-years requirements are met. Concluding Thoughts: The Section 911 Foreign Earned Income Exclusion offers significant tax benefits for U.S. citizens and eligible resident aliens abroad, but it demands careful consideration of regulations and limitations. Understanding the residency requirements, defining a tax home, assessing the character of foreign earned income, and appropriately leveraging housing exclusions are key to making the most of this provision. With the right application, taxpayers can effectively manage their tax liabilities and enjoy the financial advantages of working overseas. Consulting with this office for personalized advice is recommended, particularly given the complexities involved with the FEIE and its interaction with other tax incentives. Thu, 14 May 2026 08:00:00 GMT https://www.taxwiz.net/blog/the-irs-is-cracking-down-on-8220creative8221-tax-strategies8212what-it-means-for-you/46741 https://www.taxwiz.net/blog/the-irs-is-cracking-down-on-8220creative8221-tax-strategies8212what-it-means-for-you/46741 A recent wave of IRS court victories is sending a clear message: If a tax strategy exists mainly to reduce taxes—and not for a real business purpose—it may not hold up.This isn't a new idea. In fact, the foundation goes all the way back to a landmark case: Gregory v. Helvering But what's changing now is how aggressively it's being applied—and how often courts are siding with the IRS. The Case That Still Defines the Rules: Gregory v. Helvering In this case, a taxpayer followed the technical steps of a corporate reorganization to reduce taxes. On paper, everything was structured correctly. But the court looked beyond the structure and asked a deeper question: Was there any real business purpose behind the transaction? The answer was no. And the ruling established a principle that still applies today: A transaction can be disallowed if it lacks real economic substance—even if it technically follows the rules. Why This Matters More Today Than Ever For years, many tax strategies focused on structure: If it was documented correctly If it followed the code If others were doing it , it was often considered defensible. But now, the IRS is pushing further—and winning. Recent cases and enforcement trends show: Greater scrutiny of intent More challenges to engineered transactions Courts increasingly backing the IRS Which means the standard has shifted. From 'Does It Work?' to 'Does It Make Sense?' The real change is this: Tax planning is moving from: 'Does it technically comply?' To: 'Does it have a real business purpose?' That's a higher bar. And it's where many 'creative' strategies start to fall apart. Where Businesses Are Getting Exposed This isn't limited to large corporations. It's showing up in areas like: Real estate structures with layered entities High-income business owners using complex strategies Partnerships engaging in engineered transactions Many of these were marketed as: 'Proven strategies' 'Widely accepted' 'Audit-resistant' But without clear economic substance? They're now being challenged more aggressively. Why 'It Worked Before' Is No Longer Safe One of the biggest risks right now is relying on past success. Because enforcement is evolving. The IRS is: Looking beyond documentation Examining intent more closely Challenging strategies that exist primarily for tax reduction And importantly—courts are supporting that approach. So a strategy that worked five years ago, May not hold up today. What 'Economic Substance' Means for You (Simply Put) Before implementing any strategy, the question to ask is: Does this create real economic value? Does it involve real risk or opportunity? Would I still consider this without the tax benefit? If those answers aren't clear, That's where exposure begins. The Cost of Getting It Wrong If a strategy is disallowed, the impact can go far beyond taxes owed. It may include: Penalties Interest Time-consuming audits Reversal of expected tax benefits In some cases, it can unwind years of planning. A Smarter Approach to Tax Strategy Strong tax planning isn't going away. But it's evolving. The most defensible strategies today: Align with real business activity Have a clear, documented purpose Create economic value beyond tax savings Hold up under scrutiny—not just on paper That's where long-term protection comes from. Final Thought The rules haven't just changed. The lens has. Today, it's not enough for a strategy to look right— It has to be right in substance. And if something feels overly complex—or too good to be true— That's usually a signal to take a closer look. If you're using a complex tax strategy—or considering one— Contact this firm today to review your approach and make sure it aligns with current IRS standards. If your strategy feels complex or 'too good,' it's worth a second look. Thu, 14 May 2026 08:00:00 GMT