Taxes & Policy Archives - Page 2 of 21

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The 2026 federal poverty level climbed to $15,650 for a single person and $32,150 for a family of four — resetting eligibility for Medicaid, SNAP, Lifeline, and ACA premium subsidies

Warren Cohen2 days ago3 days ago011 mins

For a home health aide in Ohio earning $15,200 a year, the $590 increase in the 2026 federal poverty level is not an abstraction. It is the difference between falling just above the eligibility line for Medicaid and falling just below it. As of January 23, 2026, a single person earning up to $15,650 meets…

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The 2026 American Opportunity Tax Credit pays up to $2,500 per eligible undergraduate — and 40% of that ($1,000) is refundable to students whose family owes little or no federal tax

Warren Cohen3 days ago3 days ago017 mins

Every spring, the IRS processes roughly nine million returns claiming the American Opportunity Tax Credit, representing approximately $17 billion in total claims according to IRS Statistics of Income data. Yet millions more eligible families never file for the benefit at all. For the 2026 tax year, the AOTC still offers up to $2,500 per eligible…

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The OBBBA permanently restored 100% bonus depreciation for property placed in service after January 19, 2025 — saving about $40,000 first-year federal tax on a $200,000 capital expense at 21%

Warren Cohen3 days ago3 days ago015 mins

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act into law. Tucked inside the sprawling legislation was a provision that tax professionals had been lobbying for since 2023: the permanent restoration of 100% first-year bonus depreciation under Internal Revenue Code Section 168(k). For any business that buys qualifying equipment, machinery, or…

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The FBAR foreign-account threshold has stayed at $10,000 since the Bank Secrecy Act of 1970 — frozen 55 years while $10,000 in 1970 dollars equals about $82,000 today

Warren Cohen3 days ago3 days ago013 mins

Suppose you left India, South Korea, or Germany a few years ago for a job in the United States. You still have a savings account back home, maybe a small pension from your first employer. The combined balance sits around $14,000. That is enough to trigger a federal reporting obligation most immigrants and dual citizens…

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Taxpayers who filed an April 15 extension without paying the estimated balance owe 8% IRS interest plus 0.5% monthly in failure-to-pay penalties — even with October 15 still 137 days away

David Keller3 days ago3 days ago012 mins

A taxpayer who owed $10,000 on April 15 and filed an extension without sending a check has already racked up roughly $200 in IRS penalties and interest as of late June 2026. By October 15, that figure will climb to approximately $650, and on a $25,000 balance, the damage tops $1,600. The extended filing deadline…

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Quarterly estimated taxes are due in 14 days — self-employed and gig workers who underpay by June 15 get hit with an 8% IRS penalty plus daily interest

David Keller3 days ago3 days ago019 mins

A rideshare driver who pulled in $12,000 between April and May. A freelance graphic designer who invoiced $8,500 across three clients. A reseller who moved $6,000 in merchandise through an online storefront. None of them had a single dollar of federal tax withheld from those earnings. All of them owe the IRS a quarterly estimated…

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The OBBBA quadrupled the employer-provided childcare tax credit from $150,000 to $500,000 — and small businesses under $31 million in receipts can claim up to $600,000 in qualifying expenses at 50%

David Keller3 days ago3 days ago019 mins

Running a childcare center for employees has never been cheap. In 2026, staffing, licensing, and facility costs in major metro areas can easily exceed $1 million a year for a single site. Until last summer, the federal tax code offered employers a credit that topped out at $150,000, a ceiling that had not moved since…

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Tipped workers can now deduct up to $25,000 a year in cash tips from federal taxes through 2028 under the OBBBA — worth about $5,500 to a server in the 22% bracket

Warren Cohen3 days ago4 days ago013 mins

A full-time server at a busy steakhouse pulling in $800 a week in tips just got a reason to pay closer attention to her tax return. Under the One Big Beautiful Bill Act, signed into law on July 4, 2025, tipped workers can deduct up to $25,000 in tip income from their federal income taxes…

Happy smiling customers family caucasian couple man woman buy new car smile clients buyers female

The OBBBA auto-loan-interest deduction lets new-car buyers write off up to $10,000 a year in loan interest through 2028 — phasing out above $100,000 single or $200,000 joint income

Warren Cohen3 days ago4 days ago011 mins

For the first time in four decades, Americans who finance a new car can deduct the interest on their auto loan from their federal taxes. The provision, tucked into the One Big Beautiful Bill Act signed into law in 2025, revives a write-off that vanished after the Tax Reform Act of 1986 and gives qualifying…

A young woman who is in a state of stress calculates monthly housing costs and installments for a ca

Overtime pay up to $12,500 single or $25,000 joint becomes deductible through 2028 under the OBBBA — saving a worker with $20,000 of annual overtime about $4,400 at the 22% bracket

David Keller3 days ago4 days ago013 mins

When the One Big Beautiful Bill Act became law in May 2025, it carried a provision that most overtime-eligible workers had never lobbied for and many still do not know exists: a federal income tax deduction for qualified overtime pay. The write-off, which took effect retroactively for the entire 2025 tax year, lets workers subtract…

Category: Taxes & Policy

The 2026 federal poverty level climbed to $15,650 for a single person and $32,150 for a family of four — resetting eligibility for Medicaid, SNAP, Lifeline, and ACA premium subsidies

The 2026 American Opportunity Tax Credit pays up to $2,500 per eligible undergraduate — and 40% of that ($1,000) is refundable to students whose family owes little or no federal tax

The OBBBA permanently restored 100% bonus depreciation for property placed in service after January 19, 2025 — saving about $40,000 first-year federal tax on a $200,000 capital expense at 21%

The FBAR foreign-account threshold has stayed at $10,000 since the Bank Secrecy Act of 1970 — frozen 55 years while $10,000 in 1970 dollars equals about $82,000 today

Taxpayers who filed an April 15 extension without paying the estimated balance owe 8% IRS interest plus 0.5% monthly in failure-to-pay penalties — even with October 15 still 137 days away

Quarterly estimated taxes are due in 14 days — self-employed and gig workers who underpay by June 15 get hit with an 8% IRS penalty plus daily interest

The OBBBA quadrupled the employer-provided childcare tax credit from $150,000 to $500,000 — and small businesses under $31 million in receipts can claim up to $600,000 in qualifying expenses at 50%

Tipped workers can now deduct up to $25,000 a year in cash tips from federal taxes through 2028 under the OBBBA — worth about $5,500 to a server in the 22% bracket

The OBBBA auto-loan-interest deduction lets new-car buyers write off up to $10,000 a year in loan interest through 2028 — phasing out above $100,000 single or $200,000 joint income

Overtime pay up to $12,500 single or $25,000 joint becomes deductible through 2028 under the OBBBA — saving a worker with $20,000 of annual overtime about $4,400 at the 22% bracket

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