Tax credits are more favorable than deductions because a tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. The following are the main tax credits available for individuals in 2025: Residential Clean Energy [...]
We wanted to update you on the provisions of the new tax bill that was signed into law on July 4 (the One Big Beautiful Bill Act). We recommend reviewing your current tax strategy in light of these changes. We are available to discuss how these provisions may impact your personal or business tax situation, and [...]
If you think filing invoices, tracking expenses, and keeping records isn't that important, think again. Come tax time, the IRS doesn't allow you to "casually" do taxes. If you forgot to keep good records so far, the IRS does allow you to reasonably reconstruct figures and provide receipts. Tax preparer due diligence must-do's include asking the [...]
Things aren't always as they seem. In this episode of Tax Tales: The Case of the Unclear Aunt, does Aunt Joan qualify for the EITC? The preparer must take a closer look at Aunt Joan's AGI and whether the tie-breaker rules apply to determine if she can claim the EITC.
All tax preparers must practice due diligence, especially when it comes to the EITC, or they could be fined $500. Their clients could be fined as well. EITC eligibility is complicated. An updated version of Form 8867, the paid preparer's checklist, is worth reviewing in every situation. If tax preparers complete and submit the form with [...]
